Startups and Beyond: Building Enduring Organizations A Book by Ajay Batra

6 | STARTUPS AND BEYOND

7
PREFACE:
ENVISION
AND ACHIEVE
AN EXCITING
FUTURE
FOR YOUR
ENTERPRISE.
During my consulting career, I witnessed many corporate
executives struggle with questions such as: How do we achieve
sustainable growth? How do we become an admired employer
and a respected member of society? What are the best ways to
develop a great leadership pipeline?. As an entrepreneur, I was
often confronted with similar challenges. Later in my career,
when I became a startup investor and mentor, I was often asked:
What are the best practices to launch successful startups? How
do we go from being a fledgling startup to a large enterprise?.
As I reflected on these conversations, I realized that while each
of these questions (and many others like them) was asked with
respect to a specific concern, they were all related to one common
organizational need to pursue lasting success. Essentially, these
questions can be combined into one: How do we build an enduring
organization that is ethical, profitable and resilient?
My responses to my colleagues’ questions, while based on
available information and my best judgment at the time, were
perhaps incomplete. Thus, began my quest to find a holistic and
effective approach for building enduring organizations. While
specific nomenclature varies from “excellent” to “great”, and from
“lasting” to “agile”, the principles associated with organizational
endurance are well-established: an exciting and shared vision,
humanistic values, customer focus and continuous innovation.
Industry stalwarts like IBM 1 and General Electric 2 , and newage
corporations like Google 3 , Facebook 4 and Uber 5 have been
working tirelessly to systems and cultures that help build enduring
organizations. Additionally, thought leaders such as Jim Collins 6 ,
Stephen Covey 7 and Tom Peters 8 have researched extensively on
the characteristics of such organizations.
Most business leaders are keen to learn about building enduring
organizations; however, they are unsure of how to translate the
associated principles into meaningful everyday actions, especially
considering the global socio-economic turmoil. This is where the
book comes in. It is the outcome of my fascinating and educational
journey to discover the culture, processes and leadership skills that
enable enduring organizations. The book elaborates on what sets
enduring organizations apart from others, and more importantly,

8 | STARTUPS AND BEYOND
it presents the readers with an actionable framework, which
I hope will move the discussions away from the realm of the
theory, and closer to real-world implementation.
Unlike the prevalent literature that addresses either the
startup or the growth phase of an enterprise, this book covers
both: it delves deep into the discipline of launching successful
startups, while describing the methods of scaling up existing
businesses. The journey of building an enduring enterprise is
long-term and non-linear; consisting of a series of decisions,
actions, learnings and pivots. While the specific steps vary
from one business context to another, there are five critical
stages that each organization must cross. These stages are
presented as Five Maturity Levels in the book through a
unique framework called the Maturity Model for Building
Enduring Organizations © . This framework is a global first in
balancing the art, science and practice of building viable and
sustainable organizations. In the upcoming chapters, view the
unfolding of this framework as it seamlessly stitches various
disciplines together – to offer a clear roadmap for building an
enduring organization.
The book’s focus on startups is self-evident as they are
important catalysts of economic and social transformation.
Startups bring the promise of innovation to solve some of
the world’s most pressing problems in areas like education,
health, agriculture, ecology and transportation. Usually
aided by technology, startups offer agile and cost-effective
solutions with far-reaching impact. They create jobs and
spur healthy competition in the ecosystem. From Silicon
Valley to New York, and from Tel Aviv to Bangalore, global
interest in entrepreneurship 9 continues to grow. Venture
capital investments in startups grew by 61% from 2013 to
2014 globally 10 . In India alone, venture investments made in
first nine months of 2015 crossed the previous historical high
of $2 billion recorded in the whole of 2014 11 . For the first
time in India’s history, a separate government ministry 12 for
promoting entrepreneurship has been created. A plethora of
academic and private incubators and accelerators are acting
as strong catalysts in this entrepreneurial ecosystem.
Economic downturn and challenges in the availability of risk
capital in 2016-17 have only reinforced the fact that startups
need to work with game-changing vision and sound business
models for long-term sustenance 13 . With high startup
mortality rates 14 , it is clear that it takes painstaking effort and
extreme passion to take an idea to launch. Yet, many startups
face existential issues right after their launch as they scramble
to acquire and retain mainstream customers and to serve
them well. Additional challenges in the form of building the
right team and managing operations accrue as their identity
evolves from that of a startup to that of an operational
organization. Not many founders realize that launching a
startup is only the beginning and early funding only provides
inceptive validation. The real measure of success lies in how
well the startup scales to deliver consistently superior value.
In an environment of hyper-competition, market advantage
built mostly on new products is easily lost. Over-focus on
valuations, without viable business models, causes existential
risks for startups. It is clear that startups need to think
beyond the “launch”; and work on creating viable long-term
businesses.
Given the power of startups, and the lessons learned from
various startups that have excelled or failed, one would
expect a substantial body of knowledge on how to build
successful ventures. Unfortunately, there is a shortage of
codified knowledge and skills (particularly in our educational
institutions) that are essential to initiate and succeed as
startups. But for a few evangelists like Steve Blank 15 , Eric
Reis 16 , Bill Aulet 17 and Peter Thiel 18 , effective guidance is hard
to come by. Moreover, there is a sheer lack of processes and
practical tools (with the notable exceptions of Alexander

9
Osterwalder’s 19 and Ash Maurya’s 20 work) that startups can
leverage to make their journeys more effective and less riskprone.
Existing small-to-medium-sized enterprises have weathered
some of the early storms to find sustainable business models
and operations. Their challenges have thus shifted from the
existential to the aspirational. Many such enterprises (including
family-owned ones) desire to take their businesses to the next
level, but lack the management capacity and systems to scale.
Yet another category of enterprises consists of yesterday’s
startups, which are experiencing hyper-growth (usually fanned
by venture funding), and are gearing-up to be tomorrow’s
leading enterprises. For all such enterprises, an effective orbital
jump to the next level requires an intense focus on growth,
execution, empowerment and leadership development.
Unfortunately, many firms are ill-equipped to handle these
multi-dimensional challenges, and to make matters worse,
limited practical advice is available to such firms on handling
issues of scalability, profitability and innovation.
On the other hand, large domestic and multi-national
corporations are often handicapped by their legacy and
size. Their work cultures are not nimble enough to change,
exposing them to competition from disruptive startups.
Due to organizational complacency, these corporations are
mostly content with making incremental changes or efficiency
improvements. They struggle to create sustainable engines of
breakthrough innovation and intrapreneurship. While thought
leaders like Jim Collins 21 , Ram Charan 22 , Stephen Covey 23 , Dave
Ulrich 24 , Bill Curtis 25 and Robert Kaplan 26 have contributed
significantly to make the journeys of such enterprises easier,
contemporary learnings are difficult to find. Once again, what is
missed most on the ground are not conceptual postulations, but
practical and actionable insights.
The book fills the current gaps in the theory and practice
of building enduring organizations - offering a broad canvas
of actions for organizations of all types. Yet, it cannot be a
panacea for all issues that enterprises or startups face. Specific
functional expertise in various domains like Human Resources,
Finance, Marketing and Sales is needed to interpret, expand and
apply the practices of this book to each organizational context.
As you might already have observed, this book is different from
most books on entrepreneurship and management in its style
and substance. It is distinctly action-oriented and visual, taking
a cue from contemporary learning theories and the infographics
movement.
From sweeping economic changes to the new rules of global
competition; from life-altering trends in technology to the war
for talent , Chapter 1 describes this new reality in which all
organizations must learn to succeed and endure. In Chapter 2,
learn about enduring organizations that have an in-built ability
to innovate, adapt and convert challenges into opportunities.
Enduring organizations go beyond financial performance, and
consistently deliver great value to their customers, employees,
investors, partners and communities.
An enduring organization is not built overnight. Instead, it
is the fruits of a long-term and disciplined approach. The
building blocks of this approach require a smooth alignment
between strategy, execution and human capital management.
In Chapter 3, examine how these building blocks help in shaping
the future, while also delivering great results in the present.
In Chapters 4 to 9, best practices, examples and case studies
bring an enduring organization to life. Use them for an effective
implementation of the framework. One Maturity Level at a
time, these chapters offer practical advice on critical strategic,
cultural and operations changes that organizations need to
initiate and sustain. Because varying organizational contexts
call for a customized usage of the book’s practices, in Chapter
10 and Appendix A, various Use Cases are shared. For aspiring

10 | STARTUPS AND BEYOND
startup founders, a special section in Appendix C has been
added to provide a granular roadmap towards a successful
launch, and beyond.
Startups and Beyond: Building Enduring Organizations is
for visionary startup founders and business leaders who
are keen to transform current business challenges into
perennial opportunities. If the journey of building an enduring
organization such as IBM, General Electric or Google sounds
alluring, then you must act now. As Karen Lamb said, “A year
from now, you may wish you had started today.”
I wish you success in your endeavours.
Ajay Batra
New Delhi
October 19, 2017
“Just Be”

TABLE
OF
CONTENTS
01. 02. 03.
INTRODUCTION
// defining enduring organizations, 14
// overview of maturity model for building
enduring organizations (MMEO), 18
// benefits for startups and others, 20
-----
Acknowledgments, 4
Preface, 6
Notes, 284
References, 287
Index, 289
Author Bio, 293
ENDURING ORGANIZATIONS
// VUCA is here to stay, 24
// the challenging VUCA environment, 26
// VUCA as an opportunity, 27
// about organizations, 29
// gains of building enduring organizations, 30
// key attributes of enduring organizations, 32
THE MATURITY FRAMEWORK
// need for MMEO, 35
// what is MMEO?, 38
// relationship with other CMMs®, 40
// architecture of MMEO, 41
// the five maturity levels, 42
// key process areas, 53
// structure of each KPA, 65
// three pillars of MMEO, 69

04.
LEVEL ONE
// personal leadership, 76
// opportunity analysis, 88
// viability analysis, 100
// solution development, 110
// launch management, 116
05. 06.
LEVEL TWO
// commitment planning, 126
// commitment monitoring, 138
// communication and engagement, 144
// mentoring, 154
// talent transitioning, 160
LEVEL THREE
// process foundation, 174
// organization capability improvement, 184
// performance management, 194
// learning and development, 202
07. 08.
09.
LEVEL FOUR
// integrated business management, 212
// collaborative solution development, 220
// career development, 228
LEVEL FIVE
// continuous business innovation, 240
// continuous organization learning, 250
ADAPT AND APPLY
// the CAPIL approach, 260
// assessment guidelines, 263
// assessment use cases, 264
10.
APPENDIX
// navigating the book, 271
// critical fits for a startup, 276
// startup field guide, 278

READER’S NOTES:

1. // introduction

INTRODUCTION | 15
Launch your idea as a
successful Startup?
WOULD YOU LIKE TO:
Transform a Startup
into a high-performing
enterprise?
Profitably scale-up an
existing business?
Cultivate an
organizational culture
of continuous learning
and innovation?

16 | STARTUPS AND BEYOND
If you answered any of these
questions in the affirmative,
then this book holds promise
for you.
New entrepreneurs will discover a structured
roadmap for successfully launching Startups, and for
building market traction.
Founders and executives at bootstrapped, or venturebacked
enterprises, will find insights to achieve
profitable growth by evolving a culture of flawless
execution, team-work and customer-centricity.
Executives at large corporations will unearth
practices to make their organizations more agile and
innovative.
The purpose of this book is to help startup founders and business
executives succeed: founders at all stages of taking their idea to
fruition and executives at varying stages of leading and growing
their organizations. In a volatile business environment plagued with
hyper-competition, discover how select startups like AirBnB 1 and
Ola 2 scale and become dominating forces, while others languish
or fade into oblivion. Also, observe how some large enterprises,
like Google 3 and General Electric 4 , continue to innovate and grow,
while others, like Nokia 5 and Eastman Kodak 6 , stagnate or falter in
challenging times.
At the core of this book is the view that the long-term success of new
or existing enterprises is not governed by breakthrough products or
marketing brilliance alone. Contrary to what is frequently shared in
the popular media, high valuations and charismatic leaders are also
not sufficient. Wholesome success is achieved by implementing
a long-term and disciplined approach that promotes customercentricity,
financial prudence, continuous innovation and talent
engagement. This book is devoted to describing such an approach.
The following chapters systematically present the practices needed
to deliver exceptional results in the present, while growing and
preparing the organization for the future. Together, these chapters
illuminate the path for an organization to become an enduring one.

INTRODUCTION | 17
A human enterprise that
consistently delivers
distinctive results and
practices self-renewal
to become a respected
institution in society.
def.i.ni.tion: Enduring Organization (n.)

18 | STARTUPS AND BEYOND
The practice of
building enduring
organizations is a
discipline that can
be learned and
mastered.
There are many approaches to building an enduring organization. While some emphasize strategy,
others focus on execution. Some insist on understanding customers, others on engaging the hearts and
minds of employees. Some espouse Total Quality Management (TQM) 7 , others, Innovation tools 8 . Some
believe in Balanced Scorecard 9 , others in Lean Startups 10 .
The fact is that each approach brings useful lessons and perspectives, yet no one method is singularly
sufficient. Sadly, as we have seen so often in the past, when everything is important, then nothing is.
Thus, in its pursuit of many ‘management solutions’, an organization loses its focus and get drowned in
the din of daily operations. The key is to strike the right balance between multiple perspectives and to
work on a few issues that are vital to the organization’s stage of maturity.
This book offers a practical approach for any organization to become successful and sustainable
through a unique framework called the Maturity Model for Building Enduring Organizations © (MMEO).
This maturity framework is a global first in balancing the art, science and practice of building enduring
organizations. It offers a 5-level pathway that seamlessly integrates practices related to strategy, design
thinking, execution, entrepreneurship, total quality management and human capital management.
The Maturity Model for Building Enduring Organizations © presents an incremental roadmap for an
organization to:
Develop an outside-in and market-centric perspective
Plan and achieve profitable growth
Continuously innovate business models, products and services
Build a culture of flawless execution and teamwork
Attract, develop and retain talent

INTRODUCTION | 19
Maturity Model for
Building Enduring
Organizations ©
5. INNOVATING
Focus:
Continuous innovation
4. SCALE
Focus:
Diversification and growth
3. DEFINE
Focus:
Systemic efficiency
2. MANAGE
Focus:
Disciplined execution
1. LAUNCH
Focus:
Successful launch of products/services

20 | STARTUPS AND BEYOND
5. INNOVATING
Build a culture of continuous learning and innovation
Pro-actively seek product/service/process ideas from within and
outside the organization. Evaluate ideas, develop prototypes and
implement innovations. This Maturity Level takes the organization to an
enduring state of being agile and creative.
4. SCALE
Explore opportunities for business expansion and diversification
Pursue hyper growth with support from inter-disciplinary teams.
This Maturity Level enables the organization to explore new business
frontiers by leveraging qualitative and quantitative insights on
products, services, processes and customers.
3. DEFINE
Create systems to deliver great customer value consistently
Build the brand, improve business processes, identify key competencies
and enhance individual capabilities. This Maturity Level is critical for
developing a culture of high-performance and predictability.
2. MANAGE
Excel in customer acquisition/retention and product/service quality
Increase market traction, manage finances and develop talent. This
Maturity Level instills management discipline to provide a stable base
to the business
1. LAUNCH
Introduce innovative products and services in the market
Discover opportunities, validate customer needs, build a cohesive initial
team and evolve robust business models. A power-packed Maturity
Level for getting Startups off the ground, as well as for introducing new
products or services within an existing company.
Each Maturity Level introduces new
organizational activities while strengthening
those of the previous levels. An organization’s
journey across these levels entails effective
implementation of key practices, and their
disciplined assimilation in the organization’s
culture.