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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 )

When Exams Steal Childhood: A Teacher’s Call for Compassion

Exam results do not measure a child’s worth. Character, skills, discipline, adaptability, and emotional strength decide how far they go.

It is that time of the year again. For some children, it is board examinations. For others, it is annual exams, unit tests, assessments, revisions, and constant evaluations. But beyond the question papers, beyond the timetables and syllabi, something much deeper is unfolding quietly in our homes and classrooms.


I am seeing children—very young children—carrying stress far heavier than their school bags.


As a teacher, I see it every day. Children who are burned out, anxious, irritable, and sleepless.


Children complaining of headaches, stomach aches, rising blood pressure, rising sugar, panic, and fear of failure. Children who have stopped smiling the way children naturally should. And this worries me deeply. Because this is an age when childhood should bloom, not break.


This is an age meant for curiosity, laughter, mistakes, play, learning, and growing—not fear.


When pressure replaces passion

Academic pressure today has become relentless. There is pressure to score, compete, be “better than others”, and meet expectations—often expectations that are not even the child’s own.


Somewhere along the way, marks have become more important than minds. Percentages have started mattering more than personalities. Ranks are being celebrated more than resilience.


And unintentionally, many children begin to believe that their worth lies only in numbers.


This belief is dangerous.


A child’s mind is tender—like soft clay. What we press into it today shapes the adult they become tomorrow.


Children Are Not Machines

A child does not grow in straight lines. A child grows like a graph—sometimes rising, sometimes falling, sometimes plateauing. And that is normal. Expecting constant academic excellence from every child is unrealistic and unfair. Some children bloom early, others, later. Some shine in academics, others in arts, sports, communication, leadership, empathy, or creativity. All growth is valid.


When we fixate only on percentages, we forget to ask: Is my child happy? Is my child emotionally safe? Does my child feel loved even when they fail? Does my child feel heard?


A flower blooms naturally when nurtured. If you pull it forcefully, it only withers.


As a professional with over 20 years of teaching experience, I can say this with complete honesty and conviction: I have seen students with very average academic performances go on to reach incredible heights in life. I have seen:

Confident communicators succeed where toppers struggled

Emotionally intelligent children become excellent leaders.

Consistent, hard-working students outperform early “geniuses”.

Children with poor marks but strong values build meaningful, successful lives.


Academic performance alone does not define a person. Marks may open a door—but character, skills, adaptability, discipline, and emotional strength decide how far one goes.


Children’s Needs During Exams

More than pressure, children need:

Reassurance – “You are loved regardless of results.”

Support – “I am here to help you, not judge you.”

Balance – Study, yes. But also rest, play, and sleep.

Trust – Trust that effort matters more than outcome.


One exam does not define a lifetime. When parents remain calm, children feel safe.

When parents panic, children panic more. Children absorb emotions faster than instructions.


Parent, Pause and Reflect

Ask yourself honestly: Am I motivating my child—or frightening them?

Am I guiding—or comparing? Am I supporting—or pressurising? Am I nurturing a human being—or chasing social validation?

Often, pressure does not come from concern alone but from peer pressure, societal comparison, and the urge to flaunt success. But remember—your child is not a trophy. Your child is a life.


Success Is Not A Race

Exams will come and go. Marks will change. Ranks will be forgotten. But the emotional scars of constant pressure can stay for years. Let us raise children who are: Emotionally strong, Confident in their abilities, Unafraid of failure, Curious about learning, and Kind to themselves.


Because a child who feels safe at home can face the world bravely.


This exam season, let us choose compassion over comparison, encouragement over expectation, and understanding over pressure.


Let children grow at their own pace. Let them fall, learn, rise, and evolve. A healthy, happy child will always go further than a stressed, fearful one.


Let childhood blossom like a flower, not wither under the weight of unrealistic demands. Because when we protect their mental and emotional well-being today, we shape stronger, wiser, and more balanced adults tomorrow.


(The writer is a tutor based in Thane. Views personal.)


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