Who is the next leader competent to replace you ?

Leadership is EXTREMELY important. World is facing huge leadership crisis at all level. Corrupt leader is one problem but incompetent leadership is what I am discussing today.  

There are discussions all around about difference between leaders and managers.  That difference is startling and critical when managers are given leadership role. 

Managers are Cook and leaders are Chef. 

Leaders don't require instructions while managers do. Leaders don't need map to follow but they create their own road map, while managers cant do anything without map. Leadership is scarce and very precious as leaders defines & execute the destiny of the organisation or country they leads.  

There may be 5 to 7 founders of Infosys but among them who can lead? Hardly one or two. Being a part of the team if very different than being a leader of the team. It requires vision, fairness, anticipation, inspiring goal setting , executing , reasonableness , patience , firmness , perseverance , fearlessness & pressure handling capability and many such qualities. 

Richard Branson inspires dream and innovation, Narayan Murthy inspires fairness and consistency,  Vinod Rai , Ex CAG inspires fearlessness , Gandhiji inspires truthfulness , patience and walk the talk qualities , Indira Gandhi & Sardar Patel inspires firmness , Our BCCI Chief Srinivasan inspires pressure handling capability & Narendra Modi inspires vision, firmness, execution, fearlessness & pressure handling capability. They all are competent in their roles and predominantly displays qualities and leadership styles they have used in their role as leader. 

Look at leaders around you and find out what he or she inspires ? If the reply is NOTHING then these are leaders occupying leadership role without being competent for the role. 

To share my experience I suggest all leaders wherever they are leading to just find their replacement from the people they are leading.  I am sure you will not find many faces who can aptly replaces you considering the role you are playing as a leader.  Its a rare commodity & therefore valuable like brands. 

For top leaders of every organisation and institution , one of the very critical roles is to identify  , train and make next generation of leaders ready to take charge. Howsoever robust the organisation is today with its brands , technology and customer loyalty , incompetent leader can spoil the game and every sustainable competitive advantages an organisation enjoys.    

Who is the next leader competent to replace you ? If you don't have the answer or clue - leave everything else and find the answer. 

Does your enterprise Balance Sheet reflects TRUE Assets? No Its Not.

Opening the Balance Sheet and looking at the asset side will not give the true answer.  

Reasons:

- Fixed Assets are revalued and not MTM. We all know how much it will fetch if we are out to sale NOW. Yes but its Assets as long as it produces the goods which are acceptable in the Market with our cost structure.

- Stocks have two elements: Bogus & Inflated to boots profit and dead stock reflected having no market value. Remove these two to arrive at true value

- Debtors also have two elements: Generated through bogus sales and almost doubtful to doubtful debts

- Loans & Advances includes money given to associate concerns which is not recoverable in most cases. 

Therefore after adjusting the Balance Sheet with above realities , you may arrive at the RIGHT figure of the assets.  & if you adjust assets with actual liabilities , you may be surprised { shocked } with your networth figure.  

Therefore Balance Sheet is not the right place to find out the TRUE assets of the company.  Its the Non Balance Sheet assets that counts and matters the MOST.

Assets = Resources under Influence of an Enterprise which can be leveraged for Wealth Creation for all stake holders. 

An enterprise can influence its people working for it to give their best, its suppliers to supply best at most competitive rates, its customers to patronage again and again and refer new customers also,   its share holders to invest when opportunity demands , its relationship with government and other agencies to quicken the process and also policy influence,  its relationship with local area  groups/infrastructure ( What Tata Steel has done and is doing for the town Tata Nagar )  to garner their support as and when require , its Brand Promise & of-course its assets in the Balance Sheet. All these are the assets. All resources and relationships MUST be leveraged to create wealth. Not all area under INFLUENCE are reflected in the Balance Sheet.  

Question is HOW to leverage assets and HOW to expand area of Influence ?? Truly successful companies are masters of both. If any one is missing success will be limited but when both are present  success is to be seen to believe. In personal category Amitabh Bachchan , Dr Manmohan Singh are the shining examples of how they leveraged their Assets ( Voice / Acting and Knowledge / Experience - nothing is reflected in their balance sheet on the contrary these assets have made their balance sheet stronger ) and expanded area of influence.    Two of the largest enterprises in the country Reliance leveraged their capacity to deal with govt , capacity to execute at jet speed & Infosys leveraged owners' foresightedness , perseverance and governance policies to create wealth.  None reflected in the Balance Sheet.

To conclude its Assets outside the Balance Sheet that makes enterprise Balance Sheet stronger. Not the other way. Take stock , become aware of your off balance sheet assets TODAY and have plan to leverage them fully.

Assets = Resources under Influence of an Enterprise which can be leveraged for Wealth Creation for all stake holders.