Maintaining an Entrepreneurial Mindset in a Larger Company
Today's Boston Globe, quoted one of my key learnings from my past 30 years in business -- “The most well-run large companies have a long list of things they’re constantly trying to improve, and are well aware of all their faults. Poorly run large companies will rest on their laurels and tell you how good everything is.’’ [here's a link to the full article, by Innovation Economy journalist Scott Kirsner, which is about choosing to work at a large company versus a start-up].
Over the years, the one acid test I have found most reliable when first working with a company (whether as an employee, client or trading partner) is seeing how self-critical they are. I remember early in my career as a consultant at McKinsey & Company being brought into help turn-around a troubled division of a large manufacturing company. All of the middle managers I interviewed kept telling me all of things they were doing well, and despite significant prodding would not acknowledge any of the obvious faults (declining market share and margins, to name a few). It reminded me of a Jack Nicholson line from Prizzi's Honor -- sick of hearing how “f*#@ing smart’’ a gangster everyone was eulogizing had been, Jack's character asked, “if he's so f*#@ing smart, how come he's so f*#@ing dead?’’
When I was selling workforce management software to large retail organizations, it always amazed me to find that the largest, most successful organizations would listen attentively to the sales pitch and explain how poorly their operations were run compared to what they wanted to achieve (and usually these folks ended up buying the software). The most messed-up organizations, many of whom seemed to be going through a software selection process more as a self-preservation mechanism for the IT staff involved than out of any genuine interest in improving operations, would often deny having significant workforce operations issues, and each time we showed a feature that could improve their operations they were quick to explain how their existing management strategy would prevent such problems anyway.
I've come to believe, more and more, that just as there can be a fixed versus growth mindset in business just as in child raising [See the “The Secrets to Raising Smart Children,” in which motivational psychologist Carol S. Dweck explains differences in how parents set expectations and how that changes a child's ability and interest in taking risks and learning]. Successful leaders and businesses acknowledge faults, are aware that their competitors are doing smarter and better things than they are on occasion and constantly figure out how to improve things that outsiders may admire. Less successful businesses focus on trailing indicators like revenue growth and customer retention (which, by the time they go into the red zone, it's often too late to turnaround) and aren't continuously self-critical of things they are successful at.
Just as Zweck has explained how children can have a fixed versus growth mindset. I've coined a few thoughts for job seekers in how to find out if a company has a start-up / entrepreneurial mindset regardless of it's size.
A way for job-seekers to learn if a company has an entrepreneurial mindset
- In scheduling the interview say, “I’m happy to wear a tie if it makes a difference, but I rarely wear one to work if there aren’t clients around” and see what reaction you get.
- At some point during the interview, find a way to go to the kitchen / break room and get a cup of coffee. I don’t mean to get petty, but poorly run large companies skimp on the coffee service and think it’s an easy way to make money. Start-ups and larger companies with a start-up mindset know that “an army marches on its stomach” and ensure freshly brewed solutions (Keurig / Flavia / espresso machines that grind & tamp on demand, etc.) While you’re there, see what other snacks are on offer.
- Ask your interviewer when was the last time they saw the CEO? How often do they interact with him or her? Few large company CEOs spend a lot of time talking with employees at all levels of the organization, but those that do definitely have more of a start-up culture;
- Ask if there’s a company ultimate Frisbee team / reading group / running club. Find out what kind of parties the company throws. Ask about how many friends the interviewer has among his/her co-workers. These are all things that successful start-ups do well and that some large companies can do as well. Of course, at a large company you have a much better chance of being on a winning ultimate Frisbee team than at a start-up, which is another benefit.
- Ask the company what they do poorly and what their biggest fears are. The most well-run large companies have a long list of things they’re constantly trying to improve and are well aware of all their faults. Poorly run large companies will rest on their laurels and tell you how good everything is.
