Centralized Control and HR Strategy: Keys to Successful Scaling in India

This morning, I sat with a US-based founder of a tech company to discuss the restructuring of their team of 15 in India, aiming for a mass scaling initiative. This suggestion is particularly relevant for mid-sized companies looking to scale in India. A recurring theme in our conversation was the crucial role of accountability and management, which I suggested should be directly overseen by the US headquarters in conjunction with one director in India, facilitated by our consultation services.

Centralized Power for Operational Success

From my experience, distributing power among many individuals, particularly the wrong ones, in your India branch can lead to operational failure, or at best, very delayed success and chaos. It’s often better for the US-based company to retain control, delegating accountability to a single director in India. This approach helps in structuring the company more effectively and ensures streamlined operations.

Building Robust HR Policies

The second major theme was the development of policies and the HR team in India. Recruiting an HR team in India can be challenging, as they often become too powerful, potentially disrupting the organizational culture. While an HR team is essential, it can significantly influence the company’s mission and values. Therefore, we recommended a two-year plan where Shivani Strategies takes over the entire operation to maintain the US firm's mission and values. After this period, we would train and transfer these responsibilities to the in-house team.

Benefits of Our Approach

Our approach keeps control within the US firm, ensuring that an unbiased third party oversees compliance and operational integrity. This allows the firm to focus on its core work without getting entangled in internal conflicts and power struggles that could hinder progress.

While this might be an unpopular opinion, based on experience, these measures are what we recommend for ensuring smooth operations and successful scaling. By centralizing power and carefully building HR policies, mid-sized US companies can effectively manage their Indian teams and achieve their growth objectives.

Conclusion

Restructuring teams in India for mass scaling requires a strategic approach that balances control and accountability. By centralizing power in the US headquarters and carefully managing HR policies, mid-sized tech companies can ensure operational success and maintain their mission and values. This strategic approach, though unconventional, has proven to be effective in our experience.

If you’re considering scaling your operations in India, consider these insights to avoid potential pitfalls and set your company on a path to success.