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Tuesday, August 22, 2023

EEE in corporate governance

 I may sound as over simplifying and stupid in my observation of long lasting companies which have maintained their quality and services. 


I am not saying their way is the correct way or the best way or the only way.

I am not even saying all their practices are good or desirable from industry perspective, employees perspective or even their own management perspective. 

However, the fact remains they have been successful and sustained their position though their growth has been very slow and steady.

The observation is that the corporate body is also like the human body. You must consume only what you can digest and derive value to yourself and be of use to society. Like when you consume healthy food you can have a healthy body and active brain and do some work. Most importantly, one must efficiently eliminate the unwanted and excess stuff as early as possible as the next day morning stools. 

This I call EEE Entry, Energy and Exit.

TVS in South India is an example. For the time when they have started if only they had decided they could have monopolized the entire automobile sector in India. They are, of course, very conservative but have not defaulted in quality, timely delivery and proper treatment of employees and minimal inevitable bribes to the government.

 

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