Thursday, 15 September 2016

PEOPLE Vs PROCESS - A MYTH DISCLOSURE -Entrepreneur Training Volume - 1

As we all knew there are 2 type of companies in business
1. Product Based
2. Service Based
In my whole lot of experience as Entrepreneur Trainer / Consultant / Manager, I have seen there is a "MYTH" over People Vs Process and majorly in service based companies says/ prefer on People than process. I am not saying without people we could run the process but I would insist not to give excuse on process just because of people.

Either its a single man shop or SME or Enterprises, Process is the asset of the company, NOT PEOPLE.
In my whole lot of experience as Entrepreneur Trainer / Consultant / Manager, I have seen there is a "MYTH" over People Vs Process and majorly in service based companies says/ prefer on People than process. I am not saying without people we could run the process but I would insist not to give excuse on process just because of people.Either its a single man shop or SME or Enterprises, Process is the asset of the company, NOT PEOPLE.
Being an Entrepreneur and as a leader, you always has to Face the challenges, Solving Problems, marching towards the solution all the time. Before you take any action, you has to stop and ask yourself "whether I am ready to tackle it". For any operation, we have to depend on
a. People   b. Process  c. Tool
and its obvious any operational failure is depend on any one of these 3 fails. But the question here is- which is priority.
Most of the start-up service based companies, depends on people and whole growth of the company considered on the basis of few employees. But as you grow or want to grow that ll not help you, because people are very vulnerable (with due respect) than process and Tool. In this "Information Era" and wide opened opportunities for everyone, the attrition rate at this year nears about 17%- 18%. So trust me, Employees are not bonded to companies for life time or even for an complete annual cycle.
Some of the management argues with me that some of their employees brought great value to their company and they are hard workers. I agree, sure they would have worked for the company welfare but they are also improving their skill asset and as an individual their asset rapidly increasing than your company. On the other hand if you make your whole team skilled as your recommended employees, then your company asset ll also grow, not just few people.
How to achieve that? Again you cant achieve these through People-People basis but Process- People.
What is a People Centric company?
In a People Centric company, Service delivery ll be done consistently only through hard working individuals. If something to be done then the Management always goes to high level individuals, but the approach ll not be on the basis of departments. In these companies, employees they work as a team and they learn from each other on their skills. Its always take time to implement any process or to start any project in a people centric company. As the process of giving information to start any project, Employees they all end up learning to learn "How to do Business" (Which is bad for a company)
What is a Process Centrist Company?
First thing they ll define the services based on the client and organisational needs. They make sure their services well defined to support their business.If the company stick to process then you could see the results consistently and its one of the check list to know your process standards.In the process approach you ll have broad individuals who could offer more and broad skill sets which I call "Generalist" where in People centric companies they have "specialist"
Hope Specialist are well paid than a Generalist (who meets the company's need at the best) So companies has to understand the importance of the process and see the irony when they say "He/She is a specialist and preferable for the company". Any decisions by the company should be on the process basis than people who served best or hoping to do best.
I ll be listing out more benefits of Process and disadvantages of people centric approach for Entrepreneurs on my Volume-2. Please keep following for my next Volume. Thanks!

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