Small needs vs. Big experience: Bigger isn't always better

An interesting article recently by Ben Horowitz in Business Insider analyzes the challenges that can arise when small companies--especially creativity-hungry ones--bring in managers from larger organizations. Suffice it to say it doesn't always turn out as planned. Here are some quotes that jumped out at me:

In fact, most skilled big company executives will tell you that if you have more than 3 new initiatives in a quarter, you are trying to do too much. As a result, big company executives tend to be interrupt-driven.

In contrast, when you are a startup executive, nothing happens unless you make it happen. In the early days of a company, you have to take 8-10 new initiatives a day or the company will stand still. There is no inertia that’s putting the company in motion. Without massive input from you, the company will stay at rest.

And more:

When you run a large organization, you tend to become very good at tasks such as complex decision-making, prioritization, organizational design, process improvement, and organizational communication. When you are building an organization, there is no organization to design, there are no processes to improve, and communicating with the organization is simple.

On the other hand, you have to be very adept at running a high quality hiring process, have terrific domain expertise (you are personally responsible for quality control), know how to create process from scratch, and be extremely creative about initiating new directions and tasks.

The reason these kinds of relationships can fail is because small businesses and big businesses simply have different needs. In the broadest sense, both are profit-seeking enterprises seeking to maximize return on investment. But there are an infinite number of ways to accomplish that goal, and different environments (external and internal) call for different strategies. And therefore different managerial and leadership styles.

It is not safe by any stretch to assume that an individual, team or organization that thrives in one environment will thrive in the other. Small businesspeople can avoid a lot of hiring headaches by simply taking a good look at what their environment is, and what skill sets are a best fit. Top-down management or bottom-up? Routinized, mechanistic administration or creative, spontaneous inspiration? Collaborative teamwork or individual initiative?

Not sure which approach your organization needs? Start by looking at your own tasks, projects, and daily routine, and go from there.