I recently met an ex-C-level executive from a well-known Indian consumer-led company in the college education space. He had recently left his position and started a competing business, taking a significant portion of his former team with him. This isn’t an uncommon scenario, especially in industries where key leaders feel their contributions are undervalued. When the balance between effort and reward tilts too far in one direction, the most capable individuals often choose to realign it themselves. In this case, the executive’s departure wasn’t just about personal ambition—it was a response to a system that failed to recognize and retain its most critical assets.
The dynamics of such a move reveal deeper truths about managing human capital. No matter how strong a company’s processes are, if the people driving them feel sidelined or undercompensated, they will seek alternatives. This executive’s ability to pull a large part of his former team into his new venture suggests that loyalty was never to the brand alone but to shared purpose and leadership. Teams follow those who advocate for them, and when a leader steps away, their departure often exposes gaps in how the organization treats its employees. It’s a reminder that businesses don’t run on ideas or capital alone—they run on trust, fairness, and mutual respect.
The incident also highlights how fragile organizational structures can be when built on imbalanced incentives. Despite advancements in AI and automation, human motivation remains the most unpredictable factor in business success. Algorithms can optimize workflows, but they can’t replicate the intangible drivers of team cohesion—recognition, growth, and equitable rewards. When these are missing, even the most stable companies risk disintegration from within. The education sector, in particular, is relationship-driven, making it even more susceptible to such shifts when key figures exit.
Ultimately, this situation underscores a fundamental challenge in leadership: managing people is hard, and no amount of technology can replace the need for fair and transparent human interactions. Companies that ignore this reality will continue to see their best talent walk out the door, often to become their strongest competitors. The lesson here isn’t just about retention strategies but about building cultures where effort and reward are visibly aligned. Without that, even the most successful organizations are just one disgruntled leader away from a major disruption.