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Professionally managed is a term that one comes across quite so often. What exactly does that mean? We ask some startup entrepreneurs to share their definition

A month prior to the start of the current financial year, the board of Asian Paints, the country’s largest paints company, sent a note to the Bombay Stock Exchange informing of a major change at the helm.

The company decided to appoint PM Murty, an old hand in Asian Paints, as the managing director and CEO with effect from April 1 this year. The board pointed out that Murty’s appointment would coincide with the end of the terms of the promoters—Ashwin Choksi, chairman, Ashwin Dani, vice-chairman and MD, and Abhay Vakil, MD. The three would take the roles of non-executive directors on the company’s board. The change of guard at Asian Paints, wherein an owner-managed company gets a non-promoter CEO, makes one wonder as to whether bringing in a professional in place of an owner makes it a professionally managed company? Or is it that a professionally managed company has got nothing to do with who runs it (owner or a non-owner), but how it is run?

For this story, DARE asked a cross section of startup entrepreneurs to define what they think characterize a professionally managed company.

Strives for customer satisfaction
While profit making could be a driving force in a business but the focus on the customer should not get lost. A company that works towards ensuring that its customers are satisfied with its services or products goes a long way in building good reputation. “Any organization that strives for customer satisfaction through empowered employees is a professional organization,” says Anil Chandhok, Director, Chenab Information Technologies.

Customer satisfaction involves actively looking for feedback, suggestions and comments from customers and improving upon your products and services. This comes from making employees aware of the customer needs and actively addressing their issues. “People need to understand the value of a customer, they need to be a part of the organization’s culture and share common values,” says Anshul Gupta, Founder and CEO, SalvageSettlers.

Empowered employees
In the recent years, there has been a lot of talk on intrapreneurship, wherein business units are run by some key employees independently. This is to give the freedom to hone their entrepreneurial skills while running the business. Letting the employees a free hand lets even their wildest thoughts turn into fertile grounds for innovation. At the same time, giving intrapreneurs a free hand in running business units equals to quenching their desire of having their own startups. “In the beginning, the company is a perfect reflection of the founder himself. But as the company starts to grow, it needs more faces, more intrapreneurs,” says Gupta.

“Committed and expert employees—at whatever level—need to be given the independence to perform; to deliver. This can be achieved irrespective of where the CEO comes from,” says Bhupesh Trivedi, Owner and CEO, Chronosphere.

Systems and processes in place
A business process is a set of coordinated activities that are to be followed by any organization. These processes play a vital role in improving the products and services, and impacts sales and revenues.

“In a professionally managed organization, the processes and procedures in place are followed to the hilt. Hence, successful management in absence,” says Kanwal Sujit, Director, KlimArt. Sujit says that such a company would have a plan or vision in place as laid down by the conceiver(s) of the business, and it is followed consistently and coherently.

Smooth interaction between departments
This is an absolute must for a professionally managed company. The departments including production, sales, finance, etc have to work in sync with each other to attain the goals set by the company. In such a company, there would be a proper mechanism to resolve inter-departmental disputes.

“No one department should be working in isolation and all departments must know the importance of others when it comes to the success of the organization and achievement of a common goal. For example, the operations people should not be oblivious to the needs and efforts of marketing people and vice versa,” says Gupta.

Competence valued over loyalty
Some of the best owner-managed companies have given precedence to competence than to loyalty of family ties. This always results in better ideas being brought for implementation. “In a professionally managed company, decisions are based on merit and on discussions amongst key managerial personnel,” says Jagannadham T, Equity Head, SMC Capitals. Key managerial personnel are supervised by the board of directors, and even the board of directors is selected on merit and not on dynastic legacy, he adds.

“A professionally managed organization is one that operates in an ethical manner with all concerned; its clients, employees, and vendors,” says Nina Alag Suri, Founder, Nastrac.

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