India, Oct. 14 -- We had in an earlier article ('Superman entrepreneurs driving the Indian economy', August 24) described how Superman entrepreneurs (SEs), a force-of-nature kind of entrepreneur, had been driving India's growth by overcoming the odds and creating dynamic companies. However, one common complaint about Indian entrepreneurs has been their general inability to create real-scale global-sized companies. Indian labour laws are one factor inhibiting size, but importantly, the superpowers that helped these SEs build their companies, in the lingo of popular comics, after a certain size, become their kryptonite. They fail to find leverage for themselves and become the bottleneck for their company's continuing growth. So many of these companies get stuck in the Rs.5,000 to Rs.15,000 crore range trap. True leverage: Finding true leverage or finding trustworthy lieutenants is not easy for them. They are used to the loyal order takers who can execute. Finding people who can work with vision and autonomy is not easy for them. Their personality type makes true delegation unnatural for them. To break out of the mid-income trap, they must overcome their own biases and inhibitions. This is the only way in which they will be able to truly create what they set out to do - build a global market leader that can outlive them. India, more than ever, needs them to do so. SEs need to understand themselves and accept the kind of people they truly gel with. They may want to hire pedigreed branded talent to tell others, but they need people whose judgement they learn to trust, and equally those who understand and fit in with them. They could consider using a coach to help them understand themselves. Thereafter, they must find people who can share their vision but must have a mix of alignment, chemistry, loyalty and performance that SEs seek. They don't need many such people, but they do need a few core people. These people can mix the grand vision with the granular details and truly understand the growing need for adulation that SEs often crave, and help provide it, not compete with them. Talent density: Once they have reached a certain size, say Rs.10,000 crore in revenues, SEs need to seriously build talent density in the company at the entry and middle levels. They need to go beyond their original recruiting pool and overcome the organ rejection that comes about in bringing in fresh talent by creating a survival bulk (enough outsiders) that they have an internal support community. There are different ways to do this, but ignoring this need will limit their growth over a certain level. Children and succession: Succession is emotionally fraught and difficult for them. It is also very difficult being the children of an SE. For SEs, their whole life has been focused on building their business. They may have begun without wealth. Their children grow up with much greater wealth. They may have different life preferences. But only the children who are as driven and involved as they are provide comfort to SEs. These children must have the skill to navigate the SE, figure out how to obtain the outcomes they seek, rather than expect a disciplined process of succession and handover. The child must be able to live up to the SE's expectations. Different models are helpful in grooming succession, but there is no right model. However, not having any plan will leave the future of the company to serendipity. Culture and SEs: As SEs start to step back, they need to be properly acknowledged. They should be celebrated within the company. Culture lives in stories, and we think it is important for the SEs to tell their story - of how they started, the challenges they faced and what drove their success - to the entire organisation. Often this can take the shape of a book or a video, or even a values/culture guide. Embedding these stories in the organisation's folklore is important both for the SEs and for preserving the culture that made their companies special. Finally, as the SEs age, they should find other interests that give them purpose. To give back or engage in some things they truly care about - nation building, industry shaping, or personal passion - so that they can truly delegate and allow the next generation with autonomy to continue the company's journey and write its next chapter. Governance structure: The governance structure of the company should evolve with size. If it becomes a conglomerate, then an appropriate structure, a holding company perhaps, is needed. The Holdco should manage the portfolio of businesses, reviewing capital needs, talent, risk, major actions, and returns relative to expectations. If it is a monoline business, a proper management structure is required with decision rights being created based on the importance of the decision - capital limits, mergers, acquisitions and joint ventures, irreversible commitments, brand and reputational risk. The governance body should be subject to some discipline - time management in meetings and clarity on why issues are being discussed - for decisions, information and review, obtaining alignment or learning. The data source and depiction should be standardised, but as far as possible, decisions should be taken at the rock face. The structure should facilitate effective decision-making where the right data and connected people are present when the issue is discussed. Once and done should be the motto. SEs have been a driving force for the Indian economy. The nation, government, and they themselves need to see their company pass into the next orbit. They must heed advice, or as Francis Bacon said, "Things alter for the worse spontaneously, if they be not altered for the better designedly."...