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How expanding businesses can manage organisational culture changes
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* Research.
Look up organisational behaviour (spelt
organizational behavior on American web sites, which will be the most hits and focus on corporate culture sections)
* Think.
Before you think of how to manage the problems, you need to speculate on what the problems could be!
Hence, think of what problems expanding businesses could face from organisational culture changes.
An example of thinking is to ask yourself... As an non-founder employee, how would you feel if you were in a five-person start-up and used to have lots of freedom to run your working day as you saw fit, and used to be effectively your own manager as your boss ran the small business and was always away in meetings... then over the course of the following two years - thanks to successful rounds of VC funding and recruiting - the place ended up with fifty employees?
In this hypothetical scenario, how would you now feel having:
(A) a "line manager" for the first time in that company - a lack of [perceived?] visibility from no longer working directly for the founder? You being told "what to do"?
(B) more defined tasks and timescales, more constrained, more pressured focus on hitting VC-enforced revenue targets - less autonomous freedom due to the bureaucracy and increased management focus...?
(C) product is now more mature -- a perception of less chance for you to add as much innovation and creativity...? You used to chat about your ideas directly to the founder, now you seldom see him!
(D) perhaps everyone now has to wear a suit and tie to work, as the old-school VC company doesn't like "unprofessional" looking staff in T-shirts and sandals
(E) they even now have HR reviews! How corporate!
The above covers organic expansion.
Think also of the impact of expansion by acquisition upon the existing corporate culture, as each firm has its own unique way of doing things. If you add company A with company B, what could be the cultural fallouts?