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How Many Companies Lose That Loving Feeling

"Some people can think no deeper than a fact." — Voltaire (pseudonym of Francois Marie Arouet), 18th century French philosopher and dramatist

Many successful companies were started by passionate zealots with a strong technical expertise matched only by their powerful vision and intense drive to succeed. This energy and excitement attracted like-minded people (team members, customers, partners, investors, etc.) and fuelled their early growth. But because these companies weren't well-balanced, their management systems and processes were often weak. So at some point in their development, either the financial struggle or the desire of the original owners to "cash out" triggers a sale, merger, or hiring of new senior managers.

Then the "professional managers" take over. Slowly the spirit and vitality is squeezed out of the company. The sense of making a difference and being part of a cause is replaced with goals, objectives, and "the bottomline." Communications that once reported exciting news of new customers, fledgling products developed on a shoe string, new market frontiers opening, and outstanding service delivered in extraordinarily tough circumstances is now filled with dry reports on progress to sales and profit goals, committee activities, strategies, budgeting, and business planning.

It's uninspiring and lifeless. It turns people into their roles, systems, and processes. They become number crunchers, order processors, product producers, sales pushers, researchers, technical problem solvers, managers, and budgeters. Their heart and soul are lost. They went from being part of a cause that provided a paycheck to collecting a paycheck without a cause.

But many people aren't taking it any more. We’ve run into dozens of people in the last few years who've taken early retirement, gone back to school, started their own business, or turned down a bigger job assignment. They took a financial loss in order to make a deeper gain. Their personal net worth has been dramatically boosted by how they feel about the person staring back at them each morning in the bathroom mirror.

Many of these once exciting companies start as living, breathing (sometimes close to uncontrolled) organisms who, like a mysterious life form in a Star Trek episode, feed and grow on human energy (which they multiply and return). Much of that entrepreneurial energy comes from market and financial successes. Just the belief in that eventual success may be enough. But once the Technomanagers take over, that once living organism becomes a lifeless machine that feeds strictly on money. There is a vague sense that people and energy somehow help to create the money. But everybody is too busy looking for more money, to pour into the increasingly demanding machine, to bother checking out that fuzzy notion.

The intangible sense of spirit is even more critical in people-dependent service businesses. The maturing and growing training and consulting field is a good example. Within this fast evolving industry, many high performing start-up firms have been acquired or merged by larger Technomanaged (focused on management systems and technology) companies. As those spirited, organic firms become company machines, their founding spirit and best people slowly disappear. During periods of high growth these problems are papered over with money. Once the growth slows down, many of these Technomanaged companies, with their hollowed out souls, become mere shells of their former selves.

Article By Jim Clemmer


 

 

 

 
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The Finance Club

      
Campus2Corporate Contest 2011 - Level1

Zone Wise - Top 10

 West

Anilesh Yadav, IIM Ahmedabad
 
Nehul Malhotra, IIM Ahmedabad
Rachit Agrawal, NMIMS, Mumbai
Anmol Arora, IIM Ahmedabad
Sandip Shinde, Dr.Moonjee Institute of Management Studies, Nashik
Kunal Khilar, IIM Ahmedabad
Nikhil Dilip Ghare, Welingkar Institute of Management Development & Research, Mumbai
Anadi Mitra, IIM Ahmedabad
Rushi Thakar, IIM Ahmedabad
Meeth Gill, Goa Institute Of Management
Ankur Prabhakar, Balaji institute of Telecom Management, Pune
NIKITA SOMANI, Balaji institute of Telecom Management, Pune
Rahul Shanbhogue, Welingkar Institute of Management Development & Research, Mumbai
Rahul Ranjan , IIM Ahmedabad
Ashish Gautam, Balaji Institute Of Modern Management, Pune
Sharad Jain, Balaji institute of Telecom Management, Pune
Atulya Ojha, IIM Ahmedabad
Tuton Naik, IIM Ahmedabad
Nikhil Khemani, Welingkar Institute of Management Development & Research, Mumbai
H. Abhinav Gokari, IIM Ahmedabad
Mohit Garg, IIM Ahmedabad
Raju Kumar, Goa Institute Of Management
Sharada Amulya Tadimeti, Welingkar Institute of Management Development & Research, Mumbai
 
East
S.Sandhya, IIM Shillong
Dhivya Ravikumar, IIM Shillong
Shubham Agarwal, IIM Shillong
Subhankar Padhi, IIM Shillong
Garima Dhiman, Xavier Institute of Management, Orissa
Sudipta Das, Xavier Institute of Management, Orissa
Mritunjay Choudhary, IIM Shillong
Debashish Rout, Xavier Institute of Management, Orissa
Jayant Kejriwal, IIM Shillong
Anil Kumar Jagirdar, IIM Shillong
Ankush Saraff, IIM Shillong
Kaushalendra Sharan Jngabahdur, Xavier Institute of Management, Orissa
Swati Agrawal, Xavier Institute of Management, Orissa
debanjoli Sinha, IIM Shillong
Vikas Goyal, Xavier Institute of Management, Orissa
Umang Kulshrestha, IIM Shillong
Binayak Acharya, Xavier Institute of Management, Orissa
Hitesh R. Agarwal, Xavier Institute of Management, Orissa
  
North 
Shruti Sood, University Business School, Panjab University, Chandigarh
Shahnaz Chaudhary, Army Institute Of Management And Technology, Uttar Pradesh
Anusha Padi, Army Institute Of Management And Technology, Uttar Pradesh
Harmeet Kaur, Army Institute Of Management And Technology, Uttar Pradesh
Sandeep Kaur , Army Institute Of Management And Technology, Uttar Pradesh
Asim Ashirbad Mishra, Army Institute Of Management And Technology,Uttar Pradesh
 
South 
Sai Prasad Viswanathan, IIM Banaglore
Rishi Milind Patil, IIM Banaglore
Unnikrishnan Nair, T A Pai Management Institute, Manipal
Saurav Khurana, IIM Banaglore
Daksha Ballal , St.Josephs College Of Business Administration, Bangalore
Neel Jadhav, T A Pai Management Institute, Manipal
Kaza SreeRam Prasad, T A Pai Management Institute, Manipal
Sukanya Bose, T A Pai Management Institute, Manipal
Gurkirat Singh, IIM Banaglore
Rohan Dayal, IIM Banaglore
Paminderjit Sunner, T A Pai Management Institute, Manipal
Viral Shah, IIT Madras- MBA, Chennai
Namrata Keshwala, IIM Banaglore
Anant Sethi, T A Pai Management Institute, Manipal
Bhavya Sindhu M., IIM Banaglore
Sangeetha Kesav, IIM Banaglore
Venkatesh S, IIM Banaglore
H.Prasad Nayak, T A Pai Management Institute, Manipal
Varun Thamba, Loyola Institute of Business Administration
Anant Srivastava, T A Pai Management Institute, Manipal
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