January 31, 2012

Understanding and Dealing with Blame Culture

The world of business holds an entirely different view when it comes to the concept of mistakes made by employees. Blame culture is common in office politics and one often passes on his mistakes to others. When workload increases and something goes wrong, placing the blame on other becomes easy. Instead of identifying the mistake and making improvements, people are blamed for the mistakes. Increasing complexity of finger pointing can often make it impossible to determine what actually went wrong in the first place and thus resulting in poor interpersonal relations and overall job satisfaction levels. Today, people live in a blame culture where spinning circumstances to personal advantage, taking credit at the expense of others, shifting blame is a common trait.

  • Discouraging blame culture

An important aspect to discourage blame culture is to ask for “What” and “How” the mistake has been made rather than “Who” made it. It is acceptable that bosses are concerned about the mistakes being made by their employees, but question should be,” how did it happen and what can we do?”  Resorting of blame culture creates a sense of discord within an organization and it fails to achieve its maximum potential.

  • Firing the non-performers

While blame culture is simply not encouraged in any organization, at the same time, the non-performers cannot be left unidentified. Loopholes in the performance of a company can be reduced to the minimum with firing of employees who are not accomplishing their tasks. Blaming employees for dishonesty, non-performance and unethical behavior are understandable but thriving entirely on blame culture can erode their trust and teamwork, and stifle creativity.

To sum up,

  • Blame cultures are viral and ensure that are removed as possible
  • Make sure that your culture reflects “How To” instead of “Who did it?”
  • Try not to break your own rules!!


To know more about Blame Culture visit http://grasshopperherder.com

January 19, 2012

What is Lean Startup?

What is lean startup is a question that one gets to hear a lot in the corporate circles these days. Almost every entrepreneur and business executive can be seen discussing lean startup methodology and speaking in favor of it or against it.  The main argument that you will get to hear against lean startup methodology is that it is incompatible with a big entrepreneurial vision. To understand how close to or far away from truth the above mentioned statement is, one needs to know about lean startup in detail and understand how lean startup methodology works. The term lean startup has been coined by Eric Ries who is an engineer, entrepreneur and blogger. This 31 year old businessman says that his inspiration for developing lean startup methodology came from the manufacturing process followed by the Japanese factories that eliminates every investment and work that does not produce any value for customers.

So, to answer the question what is lean startup in one line, it is a methodology that focuses on reducing wastage in terms or effort or money by increasing actual contact with the customers in the actual market outside the company. This practice tests the feasibility of all the assumptions made inside the company in the real world and reduces the amount of work required to find out how accurate they are. There are three main processes followed as a part of the lean startup process.

The first process involves using the platforms enabled by free and open source software instead of buying expensive software licenses. The second process involves the use of dynamic and nimble strategies while developing the product. Following the customer development model can be of a big help in this department. The third process focuses on total and fierce customer centric rapid iteration .and here again following the principles of customer development is helpful. Following these processes brings down the product cost dramatically and at the same time improves the quality of the product significantly. To know more about what is lean startup and understand it in deeper detail you may visit http://grasshopperherder.com

January 4, 2012

GrassHopperHerder.com Offers Information on Piercing the Corporate Veil

Corporate Veil can be described as a legal concept, which is used for separating the personality of a corporation from the personalities of its shareholders. It protects the shareholders of a business from being personally liable for the debts and other obligations of the company. This form of protection is not ironclad or impenetrable. In case the court finds out that business operations of the firm were not performed as per the provisions of corporate legislation or that it was just a façade for illegal activities, it may hold the shareholders personally liable for the obligations of the business under the legal concept of piercing the corporate veil.

Piercing or lifting the corporate veil refers to an authorized decision under which the rights or duties of a business organization are treated as the rights or liabilities of its shareholders or directors. Generally, any corporation is considered as a separate legal party or person that is entirely accountable for the debts incurred by it. In addition to this, it is also regarded as the sole beneficiary of the credit owed by it. In many countries including Germany, the United Kingdom and the United States, this principle of separate personhood is upheld, but in exceptional situations they may “pierce” or “lift” the corporate veil.

A simple example to explain the concept of piercing the coporate veil would be the case in which a businessman has left his job as a director. Furthermore, he has signed a contract stating that he would not compete with the company he has just left, for a specified period of time. In case he sets up a business that is considered to be the competitor of his former company, technically it would be the company and not the person who would be competing with it. But the court is more likely to regard the new company as a “sham”, a “fraud” or some other phrase, and would give the old company the right to sue the man for breaching the contract and would also look beyond the legal fiction to the reality of the situation.

GrassHopperHerder.com, a blog written by Tristan Kromer, offers valuable information about a wide range of business concepts. Tristan is reputed lean startup advocate and is known for designing programs for entrepreneurs. For more information about piercing the corporate veil, please browse through http://grasshopperherder.com