INTRODUCTION
The common problem faced by many small & mid-sized companies is inability to become big due to a major internal reason i.e. absence of quality manpower. When the promoters/management tries to hire new or better people they come across difficulties which are similar to all companies in the same strata. These are their weak brand, inability to pay better than their peers and inability to retain existing or newly acquired talent. They are often told by their HR that their existing quality of people is bad because of their low compensation structure in comparison to their larger competition. They in their desperation to correct the anomaly keep on increasing the compensation structures for their existing employees hoping to have corrected the disparity. This is where the FAT MONKEY is born.
The Fat monkey (FM) is a typical seemingly loyal employee who keeps on getting a pay hike without any visible or tangible contribution. This person is professionally outdated, unprofessional outdated and psychologically insecure.
HOW IS A FAT MONKEY CREATED
The key ingredients required to make fat monkey are absence of systems & technology in an organization leading to processes which are driven by human beings.
To give an example – if the key processes to make a hamburger were not systemized we would not have had a Mc Donald Burger.
Large corporations have simple internal systems of email documentation of all interactions of their employees with daily reports and forms. These processes are more prevalent in service industry such as banking.
To give another example-
A simple technology of CRM for customer behavior in a hotel or a restaurant. In absence of it the key employees become very important to the owners. Imagine if this employee refuses to upgrade himself to the changing customer requirements and the management can’t throw him out what would happen to the business.
Another major factor in creation of the FM is inability of the management to update themselves on the real market scenario and their excessive reliance on their own people to get market intelligence.
To put it in bullet points the birth of the fat monkey is due to -
- Absence of systems & processes,
- Inadequate use of technology, and
- Managements introverted ness.
THE SYNDROME
You cant throw him out,
You cant get better people,
You cant get better people,
so
You downsize yourself
to his capabilities.
You downsize yourself
to his capabilities.
The above statement summarizes the mental state a small or midsized business is in. There can be a number of examples of this boutique owner who has resigned himself to be a small or niche player despite his own internal views on his capabilities.
THE REMEDY
The first important step is to come to the realization that your business is in the grip of the FAT MONKEY SYNDROME. It is not easy for owners, promoters or management to come to this realization as it requires them to objectively and dispassionately look at each key employee and every critical process in their business.
The driving force to undertake such an activity would only be to create a world class business. Often the best way would be to showcase the existing business to prospective investors and learn of the internal gaps & risks from their views. This would be more effective than hiring a consultant. And free.
So assuming the Fat Monkey(s) is identified the next step could be any of the following three choices-
- Create a parallel organization,
- Kill the first and create a new organization, or
- Confront the fat monkey.
CREATE A PARALLEL ORGANIZATION
The new organization must be supported by proper systems and processes with up to date technology. The new technologies must be tested and new employees should be hired and trained on it. The process of migration to the new setup is fraught with danger as it may require the new employee to confront the fat monkey (remember this is a very insecure animal and may go to any extreme to survive).
KILL THE FIRST TO CREATE NEW
This is generally what happens when plan one fails. In management jargon it is called downsizing to grow. Typically when a small company forces a new technology the fat monkey becomes uncomfortable and leaves. The process of his leaving is often violent and leads to short term downsizing of the business.
Such attrition should be taken as a blessing and used to put all the required
Technologies and processes in place. 
Such attrition should be taken as a blessing and used to put all the required
CONFRONT THE FAT MONKEY
If you think you will succeed then please do it.
CONCLUSION
The Fat Monkey Syndrome is an output of an imperfect management. Therefore the key would be a professional approach to business, processes and personnel.
