Thursday, July 28, 2011

Professional vs Lala company


I got asked a question, what is the difference between a professional company and a Lala company (typically used for a promoter led company). I had not come across any clear definition so went on to google and searched for Lala company. Was surprised to know that there are/have been companies which proudly call themselves Lala company, they of-course do not know the derogatory implication in the Indian context of that name. People have asked questions like what is the difference in salary between Private, limited and LALA company, I am wondering what would be the definition in the mind of the person who asked that question around the word Lala company.

Having not found any satisfactory definition for the term on Google, I can safely assume there is no definition, so I have my first opportunity of a Newton moment to define something in my name. The moment was as momentous in my life as an apple falling on my head and me discovering gravity or finding an unknown star and give it my name. The discovery is also important because of my lineage carrying a standard definition of the Lala community.

Let me put down my thoughts around what could be the difference between the two. There will obviously be some variance from the stated principles, but in general, I think most of them will fit the general situations and the way we filter between the two. This of-course is work in progress and can use some refinement, so if you have some opinions to refine and make this better, please provide your inputs and I will share credit for the definition.

  • If you work for a company where the promoter, who has the maximum stake and started the company, worked really hard to get the business established, put money at risk, learned the business from scratch, he/she also manages the company, then you work for a lala company. If some random person manages the business, who has otherwise no interest in the company, may or may not have a clue about the business, understands that the company sells soap, or is a BPO or some such stuff, has to ensure multiple times valuation so that he/she can make a lot of money, networks with the potential investors over golf, has read Blue ocean strategy, Good to Great, Strategy focused organisation, seven habits and many such great books, then you work for a professional company.
  • If your company is staffed by promoters relatives who he/she can trust, friends who have stood by him/her through bad times, people who have been loyal to him/her because of who he/she is and the company has taken care of them even in bad times, then you work for a Lala company. If you work for a company where the company is staffed by people who shift jobs with the CEO, every time he/she moves company, never worked for a company for a long time, nobody trusts anyone in the environment, and most of these guys will get fired in the next downturn, then you work for a professional company.
  • If you work for a company where the top management team abuses you in Hindi or other regional language you work for a Lala company. If the top management team abuses you in English or fashionable Hinglish, then you work for a professional organisation.
  • If you work for company where the CEO decides everyone's pay and performance without the inputs of all managers, you work for a Lala company. If you work for a company where you fill forms, give ratings, give suggestions, which go up a complete chain of managers, gets reviewed, moderated and then the CEO throws the data in the dustbin, decides on everyone's salary and ratings, in discussion with the HR manager who has been with him/her for the last 5 jobs, then you work for a professional company. 
  • If you work for a company where the CEO takes all the decisions, you don't know what the decisions are and work on what has been given to you, you work for a Lala company. If you work for a company where the Vision, Mission, Quality / Security / Toilet etc etc policies, have been put up everywhere in the office, you rarely look at them, the business has no connection to what has been written on those walls, the CEO seems to be changing business strategy everytime he/she reads a new book, you remember all the funny posters (put up as part of the Fun at work initiatives last year) but not the vision, mission, when asked you mention your last company's vision and mission and you still come out correct, you are definitely working for a professional company.
Disclaimer / Warning / Notice : I know from my previous experience at sarcasm, that some of you, especially if you work for a professional company, will feel offended by the content, please understand that this content is for adults and you should not have been reading this in the first place, you should have been working and not using the internet, as defined by the policy with reference to the policy hanging above the urinal in the washroom, duly notified and signed by the CEO.








22 comments:

oldneeraj said...

great one hahahahah owner of a lala company

oldneeraj said...

but tell you what lala business will either die or lala who are smart enough will sell out. Like 5 yrs back when we used to go to sec 17 THE shopping center of chandigarh, there were all lala shops. But today you will find only three meaning THREE shops run by a lala. But for three all of them have tied up with big brands on minimum guarantee and sitting pretty. A second example. I used to go for a lala haircut. My son (since about five years) goes to a big saloon. My lala hairdresser got old and could not run his shop, his son was happy to give the same shop on rent earning 25K a month. The option I was left with was to go to a saloon. So my friend only small villages & towns will have lala culture, everything else would be PRO in about 10 years time....Cheers with nimbu Paneee

Arjun Khanna said...

This is so true. I would like to add that Lala companies will sign a contract for 15 days and pay in 30. Professional companies will sign for 90 days and then engage their legal teams to ensure they don't pay.

Sanjay Lakhotia said...

Arjun : Thats a good vendor perspective of the same.

Neeraj : Thanks Bhaiya, cheers to nimbupani.

seo company india said...

Thanks for sharing. Its good to see fresh content always.

Rachel said...

Your style of writing is beautiful! Whether a ‘Lala’ or professional company the underlying principles would be the same; business impact, ROI and success. No matter who is leading the company, the result usually is a product of what is driving individuals working for the company. With this in mind, the Success Principles by Jack Canfield if put to practice, will surely provide insights into how personal success leads to professional success.

Unknown said...

professional attitute is the big thing to discuss. sometimes it is taken in positive and sometimes negative. persons with the quality to convert the negative portion into positive is good enough skill to fix his position.



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Anonymous said...

I think that i now work in a professional company run by a lala.

sundip said...

Now u find more professional lala in business ,where they are neither full lala and nor fully professional

tada said...


when oxygen supply for employee is less critical to profit earned then you work for a lala company. kaunsi class ka gadha hain jo sirf google search pe article likh raha hain tu

tada said...

when oxygen supply for employee is less critical to profit earned then you work for a lala company. kaunsi class ka gadha hain jo sirf google search pe article likh raha hain tu

BK said...

I have read your blog it's very interested.

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thanks

Anonymous said...

Slightly disagree here - even some Lala companies have processes defined - forms to be filled in - but finally they opt for what the Owner wants. Comes from my past experience working with such organisations. ;)

Sarah said...

Great post.......it is professional

Andriana Albert said...

Very good definition of both lala n MNC company.I want to add one point common for both : If a MNC company is not spending on the training / learning of true executers then it is worst than Lala company but if a Lala company is providing opportunities n spending on your learning / training it is much better than MNC.

Raj Groups said...

true!

ashwani566 said...

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Nice Post. Thanks for sharing information.


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connect2hcb said...

Thanks for this excellent post. Your attempt at defining the term "Lala" is really quite insightful. Reference to this post has been provided from the following blog post: http://random-reflections-thoughts-blog.blogspot.in/2016/05/is-your-company-professional-at-fore.html

connect2hcb said...

Thanks for this excellent post. Your attempt at defining the term "Lala" is really quite insightful. Reference to this post has been provided from the following blog post: Is Your Company Professional at the Fore but Lala at the Core?

Anonymous said...

Professional Service industry

nilesh.kabra@blogspot.com said...

Performance appraisal part in professional companies was so apt.. hahaha

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