Decision-making for startups : the Swadharma way

In 2011 I started MilkFlux and later Foodkite ; within a year series of bad decisions led us to a disastrous end. I never repent of my failure, it is the greatest learning of my life. For a year I wondered, if I could made those decisions right. Slowly I realize, that outcomes of our decisions are seldom in our control, but we can minimize dreadful consequences if we assess them in advance.

A good decision is essentially not always ‘the right decision’. A good decision is one that doesn't make you feel hurt, even when the outcome is not positive. For long time I was influenced by this excellent post by Nivi on ‘Venture Hack’. In my attempt to make decision with mathematical precision, I mostly encountered failure. Reason was simple, the iterative approach of decision making doesn't safeguard you against the chain of consequences triggered by one bad decision. It is as crude feed back loop, that forecasts outcomes assuming all other parameters would remain constant forever. It can be mathematically corrected, refined and put at work with great precision. Such a decision making system would also be slow, clumsy and ineffective for startups. Decision making process for startup should lean and effective.

Swadharma is one of the principal lessons of the Bhagavad Gita, philosophical base of Hinduism. I got introduced to this slick ancient hack of decision making by a corporate veteran. My initial skepticism was “can a tool of slow moving corporate machinery really be fitted into a startup scheme?”. By the end of his presentation I knew, that I would never make a decision other than the ‘Swadharma way’.

If Karma can be imagined as a scalar unit of one’s actions, then Swadhrama or Dharma is the vector of consciousness of a person. The Karmic model is well adopted among startups. Karma is good tool for quantifying executions and actionables, while idea of using karma to evaluate decisions is flawed. Decisions should be made with a clear direction. You can imagine Dharma as the cross-staff for decision making. In Hindu philosophy Dharma and Karma complements each other, the same principles can also be implied to startup processes.

Understanding Dharma

Dharma has three basic dimensions - Larger Interest, Duty and Aptitude. Any act can be plotted based on the three dimensions of Dharma. An act will be -

A. A responsibility, if it fulfill the duty of an individual or a group and also benefits a larger group of people or an establishment.

B. An unethical act or Adharma, if it fulfill the duty of an individual or a group and matches with their ability, but fail to benefit others.

C. A hobby, if the act matches with individuals aptitude and either in line or neutral to larger interest.

D. Swadharma, if it fulfills all three aspects of Dharma

How Swadharma can help startups to make good decisions

Your startup karma is based on the kind of decision you make. While a good decision will be close to Swadharma, a bad decision will be close to Adharma.

The fundamental idea of a ‘startup’ is a perfect example of Swadharma. Startup founders are expected to capitalize their ability to innovate (duty) products and services that will benefit many.

While making a decision for your startup, you should have a clear idea of who would be the largest possible beneficiaries. Based on the issue the immediate beneficiaries could be investors, users, partners, employees etc, but it shouldn't conflict with the interest of the organization.

Taking a decision that allows you to divert from your duties, could potentially be a bad decision. Such a decision are not always bad, but should be made with careful observations.

Art of reaching Swadharma

Reaching Swadharma requires continuous conscious effort. In many situation the choice of aptitude and duty are mutually exclusive. While you are trying to reach Swadharma, you will require to perform many acts of responsibilities before achieving the goal.

The rules of thumb are -

• Perform no act without a clear beneficiary.
• Prioritize duty over knack and interest.
• Build a team with diverse skills that complement each other.
• Empower people to take their own decisions.
• Be patient.