Points to Ponder: Success breeds complacency. Complacency breeds failure. Only Paranoids Survive. - Andy Grove
The person who is the star of previous era is often the last one to adapt to change, the last one to yield to logic of a strategic inflection point and tends to fall harder than most. - Andy Grove
Story Line:
Based on my 40 years in tech industry working from small startups to medium size companies to the world’s largest company in its field, here are my observations and some points to ponder.
In big companies most of the problems are organizational and structural. Technical and Operational issues are the victims of complex and cumbersome organizational structures that slow down decision making and execution. Too much time goes in internal meetings, summits, updates, research, etc rather than doing the work that results in efficient execution. Too many people are busy: data consolidators, reporters, note takers, communicators and very less % doers. There must be shortest path between provider and receiver of products and services.
“Your successful path blocks your vision to the future.” Failed to see rising competition, wrote it off or missed opportunity to make alliances. Intoxicated by their own success and turning blind eye on benchmarking data. (read recently that the company that was downplayed by the big company may come to rescue them now 😊)
When carts start running the horse. The support groups become too powerful. The job of support groups is to help enable business strategies and not the other way around where business managers spend time satisfying their requirements. Why not mandate these very groups that preach efficiency and cost savings to come up with their annual plans that deliver twice output from them with half the resources?
When they bring benchmarking data that says “We are not on par with other companies in terms of number of Vice Presidents and we need to substantially increase that number”, Why not turn it the other way and be the best practices benchmark for the world in terms of fewer upper management with outstanding results? The pity is that more VPs have to create more initiatives to withstand “Ranking and Rating” system for their survival which results in a lot of unproductive work. (And added resources complexity)
There are so many people working so hard and achieving so little. ...Andy Grove
A desk is a very dangerous place to view the world. Too many tabletop managers, and desktop engineers. Engineers need to dirty their hands and spend more time on the production lines or labs instead of desktop data processing fellows and reporters. Managers should spend time dealing with internal external customers and individual employees. Remember Leadership is more about psychology and less about technology.
As Andy used to say “People in the trenches are usually in touch with impeding changes early. “
Things that matter most should not be put at the mercy of things that matter relatively least.Need to monitor very closely how “progressive” initiative like Diversity, Globalization are implemented. For diversity, Two wrongs don’t make it right. Need to be mindful that What was done wrong for years to one side shouldn’t be done to the other side. (Or perceived that way eventhough not done purposely. but need to be aware of their sensitivity.) Not well thought out implementations resulted in a lot of frustrations, anger and disappointment not only on the other side but also in competent qualified and deserving members of every diverse group.( have a lot more examples and suggestions on this issue but save it for future reflection).
When Pendulum is taken too far in one direction, it goes equally far or taken farther in the other direction as evident in recent events.
Walk the talk when it comes to meritocracy Accountability: If answer for every new initiative or annual plan is “ I need more resources “ then why not get a trained parrot instead of managers? Much cheaper alternative. ( Don’t get Macau, just a common green parrot will be cheaper). If the headcount has become too large, whose problem it is? The management that made those bad decisions to hire more people instead of finding ways to be more efficient must be made accountable too. Need to implement the same thinking in management as we do in our products and services. I. E, faster better cheaper.
Fairness: Performance reviews should be solely based on performance criteria, qualifications and not on satisfying quotas for special programs. Also need to be flexible: if more people qualify for higher performance at times then increase the allocation for high performance to accommodate them. Otherwise Meritocracy becomes a Hypocrisy. Results in good people walking away from company quietly or demotivated people staying and not putting heart into work.
And lastly ( for now )
Globalization Obsession and unintended consequences: Missing the important part: In Gujarati language there is a saying “Ghar na chokra Ghanti Chaate ane Upadhay ne aato ape.” ( while your own kids are fighting to leak leftover on plates or going hungry, you are busy feeding the world) Globalization initiatives though right and well intended missed a very important part of good leadership. What good is the program where your own people who served you well through the years are left without jobs while others have prospered handsomely?
How can you motivate yourself to continue to follow a leader when he appears to be going around in circles? -Andrew S. Grove,
Reflection: When I said goodbye to the industry 10 years ago, I detached myself from any work related thoughts or items except maintaining strong personal friendships developed with many people I had worked with.
But last month, reading about the dire state of the company I have admired, learnt a great deal from and prospered with lifelong friendships, I felt compelled to share my views.
I wish new CEO and all employees great recovery to the status of their Golden Era, ( one of World’s Most Admired, Top Brands and Leader in Technology)
and end with the profound words from the man whose company and microchips changed the world and it’s economy.
“Bad companies are destroyed by crisis, Good companies survive them, Great companies are improved by them.” Andy Grove
Due to length of this Reflection, “ Elephants Move Slow” story that was planned to be in this article will be published in future reflection.