Why Leadership & Coaching is Necessary to take your Business from System 1 to System 3

Why Leadership & Coaching is Necessary to take your Business from System 1 to System 3

1) System 1 is all about Proprietorship kind of business

2) It is characterized by Skills, Control and Power of the Proprietor

3) As the Business Grows in System 1, the EGO of the Proprietor also grows BIG

4) He calls the shots and a few support and service employees follow his command. He is the be all and end all of the business

5) System 2 is moving out of Proprietorship into Pvt. Ltd or Partnership

6) Here the need is to create a Leadership and Executive team

7) From Autocratic Leadership Style here the need is to demonstrate an Inspiration Leadership Style

8) This is easier said than done. Once we become Autocratic as a person, it is very difficult to transform our mindset and nature and Demonstrate Inspirational Leadership

9) Hence Training and Coaching becomes Extremely Important but the Most Vital amongst all things is to show the ability to Surrender himself or herself to the Coach. Again easier said than done

10) System 2 businesses are characterized by CLARITY OF PURPOSE, an Executive & Leadership Team, a Clear Code of Ethics, a Clear Vision, a Clear Mission, Clear Values etc which together act like Fevicol to hold the Organization together

11) System 2 Businesses too have limitations and cannot function beyond a point and need to transform into System 3

12) System 3 Organisations need to Mobilize Capital from Capital Markets and Institutions that calls for very Specialised Skills. System 3 is also about Building Strong Brand and Technology Systems. Brand Building is the main purpose in System 3 because System 3 needs to be a Magnet to attract business automatically on its own

13) System 3 is all about Scaling Up, Going Public, Having a Board of Directors, Having Compliance Systems and Valuation targets

14) System 3 can only be built when the organisation is ready with a business model that works, a team that delivers, trademarks and system designs in place, clarity about vision, mission, value statements, code of ethics

15) To build System 3, the leader has to have the heart to make BIG Spends in Advertising, Brand Building, Tie Ups, Infrastructure, a Bigger Leadership Team, Sprucing up Technology and a Future Global Strategy

16) Here the leader has to transform himself from one who managed costs prudently to one who has the heart to Invest in Large Scale Spending to Build Brand

17) Normally it is not amongst the easier things for a Prudent Spender to become a Big Spender which System 3 demands.

18) THIS CALLS FOR SELF TRANSFORMATION : Taking Guidance from Experts, Trusting them and Acting is vital but most difficult. Hence sometimes this work should be assigned to some other person (Another Director of the Firm)

19) Therefore the journey from High Control (System 1 ) to Inspiring Leadership (System 2) to Building Scale by Raising and Infusing Capital to fuel large budgets (System 3) is very demanding

20) The Leader needs to Let Go at various stages; Hiring Consultants, Experts, Team, Coaches to be able to transcend his limits to demonstrate System 3 Success is extremely vital

21) Just the Awareness of these 3 Systems will help an Entrepreneur envision his or her Business Journey & Purpose of Life

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