Business management lessons from AAP’s failure

The sudden rise and equally sudden fall of Aam Aadmi Party has some important learning lessons for businesses which are currently in the growth mode.

Many businesses which start with a rapid growth in the beginning, start faltering after growing to a specific size. Maintaining growth momentum after attaining some size becomes a real challenge which few companies can overcome. Others either stagnate at that level or go back downhill.

AAP faced some management challenges which it could not overcome. Growing companies also face similar challenges. The debacle of AAP in 2014 elections has some management lessons for growing businesses.

Arvind Kejriwal’s
AAP rose to popularity really too fast. It promised a hope of a corruption free India. It is a success story of a brand getting hugely popular too fast. But, the brand AAP did not live up to the hype it generated. Why? Here are some reasons.

Management Bandwidth
One reason for AAP’s failure is the lack of Management Bandwidth. Just like many suddenly grown companies, AAP, too , faced lack of quality, talented and experienced manpower who could manage the party’s affairs and could provide leadership at various levels of the organization.

Only Branding Focus,
No marketing
AAP and Arvind Kejriwal are good at grabbing media attention and thereby keeping their brand afresh in popular mind. Somehow or the other AAP and its leader kept themselves in the news. Huge advertising budget and a lot of noise in the media may ensure brand awareness and visibility, it may not necessarily ensure marketplace success of the product. The product has to deliver on the brand promise. Here is where AAP failed. Media hype was good, but the party failed to deliver what it was expected to. Particularly, after the Delhi government fiasco, it became clear that AAP was good at agitations and not in execution. Along with focusing on popular attention, AAP should also have developed its own governance and administration arms.

Lack Of Structure
In any family managed business, there is no structure and the family members monopolize control over all decisions and resources. AAP functioned just like such a  business where all decision making rested with a select group of people. This lack of democracy disillusioned many big names in the party who deserted it recently.

Even though it is not the end of the road for AAP and it can definitely recover from the recent setback, it will have to make greater efforts to bounce back due to its own mistakes.

The business which wishes to cash in on its initial success must learn from these mistakes and avoid them.

Author: Sanjay Shah

Sanjay is the author of "Business Management Simplified" which provides Practical, Actionable Solutions for Entrepreneurs. It is an all-in-one guidebook to start, run and grow a small and mid-size business to the next level. He is also an SME Business Coach, Seminar Leader and Motivational/Keynote speaker, Sanjay is based in Mumbai (India). He advises many businesses on Strategy, Leadership, Marketing, Branding, Customer Experience Management and Organization Development. He conducts various self-help seminars and workshops for companies and groups in English, Hindi and Gujarati. For more info, visit : www.SanjayShahSeminar.com

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