Tuesday, April 30, 2019

Downfall of AAP- A classic business case study


 Downfall of AAP- A classic business case study  

Six years ago on November 26th 2012, India witnessed the inception of the AAP or the common man's Party. Adorning white caps bearing the words 'self-rule', this ragtag bunch of professionals, academics, and politicians took the capital by storm by forming a govt at the center and then going on to a decent debut in the Lok Sabha polls. The party had a meteoric rise but soon was engulfed in Internal politics which eventually lead to its downfall.

What went wrong and why?

1.  Early Success can be misleading

AAP was formed in November'2012 and within one year in Dec'2013, they fought their first elections and formed government. This early success increased the ambitions of party to go national without having adequate resources, organisational structure , funding and all other things

Lesson for business: There is something called beginners luck. Don't ride on that luck to become too large too soon. May be , you are now ready to repeat your success at large scale. 

2. Leaving the positioning of the party

 Simple living, zero corruption, against all current and national parties

One of the principle reasons behind the failure of the party was because of the contradictory nature of their ideology and actions. Before coming into power, Kejriwal kept pointing out how politics had become a ' dirty business'. He also built his party as a clear alternative to BJP and Congress, Kejriwal and his leaders framed their party ideology along the lines of tyaag, or politics of sacrifice; it would mean complete devotion to the party for nation-building and public service. 

This positioning is what caught the attention of public across social stratas, religion , caste. It was coming out to be true national alternative with appeal across all voting segments. But then series of incorrect decisions

1. In quest to be part of united opposition, standing with convicted parties like RJD, SP, BSP and even Congress

2. Taking all government luxuries like Car, Bungalows and Foreign trips

3. Selection of one Rajya Sabha member in particular that even led to lot of internal opposition. 

4. No Internal democracy

5. Holding to two positions ( party and Delhi CM) by Mr Arvind 

All these decisions have led the main positioning of the party to be diluted or rather gone. Not, it is just another political party.

Lesson for Business: Your customers knows you for some value, high quality, lowest prices, value for money, great service. Never lost that core value else your customers would be confused

3.  Questioning the unquestionable

Be it demonetization or Air strikes, AAP stand was always to question . In India , we don't question Army actions in particular

Lessons: Don't try to change people perception too fast


4.  Top leader dictatorial style

I don't have any personal experience or personal anecdote but when you lose all the founding team members in 5 years ( Yogender Yadav, Prashant Bhushan, Ashish Khetan, Ashutosh, Dr Kumar Vishwas) and many others, there is time to introspect

Lesson for Business: The top leadership and topmost leader has to be democratic for sustainability of business at large scale


5.   Blaming Union Government Everyday

On one side , AAP government claims day in and day out that they are not allowed to work on the other side , there full page advertisements everyday on achievements. This contrary stands are difficult to be understood by common man. If you have done so well, how come you blame center everyday on stopping you to work

Lesson for Business: Never have confusing communication

6. No Patience 

Patience is the key in anything in life. AAP was lucky to form a state government within first year if its formation. That prompted them to take huge national leap in 2014 elections. Not getting same results in 2014 general elections and then Punjab assembly elections, they lost patience and did all the above mistakes.

Lesson for Business: Patience is key in any business


Classic example of success is Imran Khan party in Pakistan. Starting in 1996, it took them 17 years to form first state government and 22 years to form national government in 2018.  During these 22 years, party was on brinks of closure for most years. Still keeping core values, positioning, team and communication intact, Imran Khan became PM in 22 years.

AAP and Arvind kejriwal could have done same if he was willing to wait till 2039 






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