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By:

Rashmi Kulkarni

23 March 2025 at 2:58:52 pm

Loss Aversion Is Why Your Good Idea Fails

Your upgrade is their loss until you prove otherwise. Last week, Rahul wrote about a simple truth: you’re not inheriting a business, you’re inheriting an equilibrium. This week, I want to talk about the most common reason that equilibrium fights back even when your idea is genuinely sensible. Here it is, in plain language: People don’t oppose improvement. They oppose loss disguised as improvement. When you step into a legacy MSME, most things are still manual, informal, relationship-driven....

Loss Aversion Is Why Your Good Idea Fails

Your upgrade is their loss until you prove otherwise. Last week, Rahul wrote about a simple truth: you’re not inheriting a business, you’re inheriting an equilibrium. This week, I want to talk about the most common reason that equilibrium fights back even when your idea is genuinely sensible. Here it is, in plain language: People don’t oppose improvement. They oppose loss disguised as improvement. When you step into a legacy MSME, most things are still manual, informal, relationship-driven. People have built their own ways of keeping work moving. It’s not perfect, but it’s familiar. When you introduce a new system, a new rule, a new “professional way,” you may be adding order but you’re also removing something  they were using to survive. And humans react more strongly to removals than additions. Behavioral economists Daniel Kahneman and Amos Tversky called this loss aversion where we feel losses more sharply than we feel gains. That’s why your promised “future benefit” struggles to compete with someone’s immediate fear. Which seat are you stepping into? Inherited seat:  People assume you’ll change things quickly to “prove yourself”. They brace for loss even before you speak. Hired seat:  People watch for hidden agendas: “New boss means new rules, new blame.” They protect themselves. Promoted seat:  Your peers worry the old friendship is now replaced by authority. They fear loss of comfort and access. Different seats, same emotion underneath: don’t take away what keeps me safe. Weighing Scale Think of an old kirana shop. The weighing scale may not be fancy, but it’s trusted. The shopkeeper has used it for years. Customers have seen it. Everyone has settled into that comfort. Now imagine someone walks in and says, “We’re upgrading your weighing scale. This is digital. More accurate. More modern.” Sounds good, right? But what does the shopkeeper hear ? “My customers might think the old scale was wrong.” (loss of trust) “I won’t be able to adjust for small realities.” (loss of flexibility) “If the digital scale shows something different, I’ll be accused.” (loss of safety) “This was my shop. Now someone else is deciding.” (loss of control) So even if the new scale is better, the shopkeeper will resist or accept it politely and quietly return to the old one when nobody is watching. That is exactly what happens in companies. Modernisation Pitch Most leaders pitch change like this: “We’ll become world-class.” “We’ll digitize.” “We’ll improve visibility.” “We’ll build a process-driven culture.” But for the listener, these are not benefits. These are threats, because they translate into losses: Visibility can mean exposure . Process can mean loss of discretion . Digitization can mean loss of speed  (at least initially). “Professional” can mean loss of status  for the old guard. So the person across the table is not debating your logic. They’re calculating their losses. Practical Way Watch what happens when you propose something simple like daily reporting. You say: “It’s just 10 minutes. Basic discipline.” They hear: “Daily reporting means daily scrutiny.” “If numbers dip, I will be questioned.” “If I show the truth, it will create conflict.” “If I don’t show the truth, I’ll be accused later.” In their mind, the safest response is: nod, agree, delay. Then you label them “resistant.” But they’re not resisting change. They’re resisting loss . Leader’s Job If you want adoption in an MSME, don’t sell modernization as “upgrade”. Sell it as protection . Instead of: “We need an ERP.” Try: “We need to stop money leakage and order confusion.” Instead of: “We need systems.” Try: “We need fewer customer escalations and less rework.” Instead of: “We need transparency.” Try: “We need fewer surprises at month-end.” This is not manipulation. This is translation. You’re speaking the language the system understands: risk, leakage, blame, customer loss, cash loss, fatigue. Field Test: Rewrite your pitch in loss-prevention language Pick one change you’re pushing this month. Now write two versions: Version A (your current pitch): What you normally say: upgrade, modern, efficiency, best practices. Version B (loss prevention pitch): Use this template: What are we losing today?  (money, time, customers, reputation, peace) Where is the leakage happening?  (handoffs, approvals, rework, vendor delays) What small protection will this change create? (fewer disputes, faster closure, less follow-up) What will not change?  (no layoffs, no humiliation, no sudden policing) What proof will we show in 2 weeks?  (one metric, one visible win) Now do one more important step: For your top 3 stakeholders, write the one loss they think they will face  if your change happens. Don’t argue with it. Just name it. Because once you name the fear, you can design around it. The close If you remember only one thing from this week, remember this: A “good idea” is not enough in a legacy MSME. People need to feel safe adopting it. You don’t have to dilute your standards. You just have to stop selling change like a TED talk and start selling it like a protection plan. Next week, we’ll deal with another invisible force that keeps companies stuck even when they agree with you: the status quo isn’t a baseline. It’s a competitor. (The writer is CEO of PPS Consulting, can be reached at rashmi@ppsconsulting.biz )

The Myth of the Job-Ready Graduate

India’s education reforms will succeed not by producing trained hands, but by cultivating adaptable minds.

One phrase dominates discussions on higher education today: the ‘job-ready graduate.’ It sounds practical, reassuring, and even urgent. Yet it hides a deeper question that is rarely asked. What does ‘job-ready’ really mean at a time when jobs themselves are changing faster than ever?


In most professional settings, there are no fixed manuals. Engineers, scientists, and technologists routinely work with incomplete information, evolving technologies, tight budgets, and unexpected failures. In such environments, the difficulty faced by many fresh graduates is rarely a lack of intelligence or motivation. More often, it is a lack of exposure to how real work unfolds. This is where the idea of a research apprenticeship becomes important.


Research apprenticeship is not about training students for a specific job role. It is about placing them, early and meaningfully, inside real research or problem-solving environments. In these spaces, students do not merely follow instructions. They watch problems being framed and reframed. They see experiments fail, designs change, and assumptions break down. They learn how decisions are taken under uncertainty, and how results are interpreted rather than memorised.


In simple terms, a research apprentice learns how work actually happens, not just how it is described in textbooks.


This kind of exposure is very different from routine laboratory classes or short internships. Teaching labs are designed to demonstrate known outcomes. Internships often involve limited tasks with little responsibility. Research apprenticeship, by contrast, is defined by uncertainty. Problems may not have clear answers. Data may be messy. Resources may be limited. These are not exceptions. They are the normal conditions of professional life.


Viewed this way, the link to employability becomes clearer. Employers rarely expect fresh graduates to know everything. What they look for is the ability to learn quickly, ask sensible questions, work with others, and remain effective in unfamiliar situations. Research apprenticeship develops these qualities naturally, without packaging them as formal “skills.”


There is another benefit that often goes unnoticed. Research apprenticeship also introduces students to professional culture. They learn how teams function, how responsibility is shared, how ethical boundaries are respected, and how communication shapes outcomes. These aspects are seldom taught explicitly, yet they strongly influence how well a graduate adjusts to the workplace.


Experiential Learning

India’s New Education Policy reflects this broader understanding. It emphasises experiential learning, early research exposure, flexible curricula, and closer engagement between universities and society. The intention is not to turn universities into training centres. It is to ensure that students encounter real problems during their education, rather than for the first time after graduation.


In practice, however, implementation varies widely. Well-endowed institutions may offer advanced laboratories, funded projects, and strong industry partnerships. Many public and regional universities operate under constraints of funding, infrastructure, and faculty workload. From a research perspective, these constraints are not always disadvantages.


Scarcity often mirrors professional reality more closely than abundance. Engineers and scientists rarely work with unlimited resources. They work with trade-offs. When students learn in environments where equipment is shared, budgets are tight, and solutions must be practical, they develop judgment and prioritisation. These qualities are central to employability, though they rarely appear in syllabi.


This is particularly relevant for traditional branches of engineering and science. Civil, mechanical, and electrical engineering, along with physics, chemistry, and core life sciences, remain foundational to infrastructure, manufacturing, energy, water, materials, and healthcare. Their challenge is not relevance, but exposure to real practice.


A civil engineering student who has worked on a live water or transport project understands constraints that no classroom problem can convey. A mechanical engineering student who has seen machines fail develops a different relationship with design. A physics or chemistry student involved in field measurements or instrumentation learns how theory behaves outside controlled conditions. These experiences quietly build professional confidence.


Importantly, research apprenticeship does not require expensive facilities. It requires access to real problems and thoughtful mentorship. Field projects, collaborations with local industry, municipalities, hospitals, utilities, or small enterprises often offer deeper learning than sophisticated but isolated laboratories. Many heritage institutions already possess strong regional and alumni networks that remain underused as learning resources.


Research Apprenticeship

Another limitation of the job-ready narrative lies in how students are assessed. Academic systems reward correctness, speed, and individual performance. Professional environments reward reasoning, collaboration, and persistence in the face of uncertainty. Research apprenticeship exposes students to this mismatch early, helping them adjust expectations about performance, responsibility, and success.


Globally, this approach is well established. Several European systems embed apprenticeship and project-based learning even in core engineering disciplines. In the United States, cooperative education and undergraduate research allow students to spend extended periods inside working environments. These systems do not promise instant productivity. They produce graduates who grow into roles.


The rapid rise of artificial intelligence strengthens this argument further. Many routine tasks are now assisted or automated. Tool-specific skills change quickly. What remains valuable are human abilities: framing problems, interpreting results, exercising judgment, and working with others. These are not acquired through lectures alone. They are learned through participation.


From a research perspective, the discussion on employability therefore benefits from a shift in emphasis. Instead of asking whether graduates are job-ready, a more useful question may be whether they are learning-ready. Research apprenticeship builds this readiness by exposing students to uncertainty, responsibility, and real consequences.


As India implements the New Education Policy across diverse institutional contexts, this distinction becomes increasingly important. Resource constraints, disciplinary traditions, and technological change need not be obstacles. They can become part of the learning process itself.


Graduates shaped by a research apprenticeship may not know all the answers on day one. But they know how to approach problems, ask better questions, and learn continuously. In a world where roles evolve faster than curricula, that may be the most employable capability of all. 


(The writer is the ANRF Prime Minister Professor (designate) at COEP Technological University, Pune, and former Director of the Agharkar Research Institute, Pune. Views personal.)


1 Comment


Vinay Bhandari
Vinay Bhandari
Dec 29, 2025

Agree. Need of the time, create ability to "Envisage problems and challenges, devise multiple solutions for different conditions and perform constrained optimization". The routine problems can be quickly solved using the latest advancements such as AI and such things; however, innovation requires "Fresh", "Out of the box" thinking.

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