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By:

Rahul Kulkarni

30 March 2025 at 3:32:54 pm

Why the Majority Doesn’t Matter

Most change fails not from resistance, but from weak coalition design. Even if you negotiate well, you can still fail for a boring reason: You built the wrong coalition. This week we step into the third act of this series: modernize without backlash. Most leaders walk into an MSME thinking change is a vote. If most people agree, you win. That’s corporate thinking. In legacy Indian SMEs, the majority is usually passive. The people who matter are the ones who can stop the flow.   Which Seat...

Why the Majority Doesn’t Matter

Most change fails not from resistance, but from weak coalition design. Even if you negotiate well, you can still fail for a boring reason: You built the wrong coalition. This week we step into the third act of this series: modernize without backlash. Most leaders walk into an MSME thinking change is a vote. If most people agree, you win. That’s corporate thinking. In legacy Indian SMEs, the majority is usually passive. The people who matter are the ones who can stop the flow.   Which Seat Inherited seat: you may have authority, but you still need backing beyond the family name. Hired seat: you may have ideas, but you don’t have a home team yet. Promoted seat: you may have relationships, but you don’t automatically have permission.   In cricket, you don’t win because you have 11 batsmen. You win because the field is set right for the plan. A bowler can be doing everything right and still leak runs if the field leaves gaps. Singles become boundaries. The team blames the bowler. But the real issue was field setting. That’s how change fails in MSMEs.   Veto Players A small blocking group can stall you even if everyone nods in meetings. They don’t argue. They sit at gates: - Money release - Purchase approvals - Dispatch control - Owner access They can delay, create exceptions, raise “data doubts,” or ask for “one more confirmation.” And then they do the most effective thing of all: quietly wait for your energy to fade.   Own Work In one assignment, I thought I had the room. People smiled, agreed, even said, “Very good”. Two weeks later, nothing had moved. Two gatekeepers kept adding small speed-breakers. Every objection sounded reasonable. Over a month, the pilot died … no drama, just suffocation. That’s when I learned: in MSMEs, you’re rarely battling resistance. You’re battling veto power.   Coalition Math Political scientist William Riker had a simple idea: you don’t need everyone, you need a coalition that’s just big enough to win and hold. In a company, that means: enough of the right people so the new way becomes unavoidable. And people don’t jump alone. Most switch only when they see others switching because nobody wants to be the first person who looks foolish. So, your job is not “get buy-in from 50 people”. Your job is: 1. Build a small winning coalition 2. Neutralise the blocking coalition 3. Make it visible so the passive majority follows Politics Drama Name the gates Write the 3–5 gates your change must pass through (money, approvals, dispatch, data). Then write who controls them in real life. Pick your first five supporters Not supporters in principle. People who will act. Five is enough to cover gates without becoming a crowd. Pay the coalition cost upfront Each supporter needs one thing to stay aligned: respect, safety, credit, clarity, control of exceptions. Ignore this, and support disappears the first time pressure comes. Neutralize blockers calmly You have three moves: Convert: give them a dignified role and protect the interest they fear losing. Bypass: redesign the workflow so their veto reduces. Contain: limit their veto to exceptions, not the main flow. What you should not do is start a public fight too early. That creates camps. Camps create long wars. Wars kill modernization.   Field Test Name your first five supporters for your next change. Against each name, write ONE concession they need to stay aligned. Example: “You chair the weekly ritual.” “Pilot data won’t be used for appraisal.” “You control exceptions, but exceptions must be logged.” “Your method becomes the base standard.” “Your role is made explicit.” If you can’t name five, you don’t have a coalition yet. You have a hope.   In MSMEs, the majority is tired, busy, and risk-sensitive. They won’t lead your change. They will join it when it feels safe and inevitable. So, stop trying to convince everyone. Set the field properly. Build alignment with five. Neutralise the two who can block.   (The writer is a co-founder at PPS Consulting. He is a business transformation consultant. He could be reached at rahul@ppsconsulting.biz.)

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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