I have been, for whatever reasons, in the software industry since last five years. I should say that this learning experience has been nothing less than thrilling. Indian IT industry is in startup mode and people in it have witnessed many interesting things. But currently, I am witnessing what others in IT industry still have to witness, a downturn, god forbid. My company is facing downturn of fortunes because of a steady decline in growth due to business reasons. I have been a veteran of this decline since the beginning (Don’t apply transitivity to blame me for the decline).
Being an early bird to witness a decline phase, I would like to share the symptoms that indicate whether a company is in trouble. Traditional indicators like the stock price and annual reports cannot be believed because they can raise false alarms due to the very nature of financial markets. So, following is the list of symptoms, which I believe indicates a decline phase:
Confusion prevails: One day your company is selling a medicine to keep people awake, next day it sells a drug which gives a momentary kick, and some other day it sells a refreshing drink but internally you are manufacturing coffee on all the three days. Do you find your product being sold under different umbrellas? Do you see lot of reorganizations, which do not affect your regular engineering work? Boy, beware! The company is finding no takers of their story in the market.
Innovators look frustrated: Innovators (or researchers) are the most pampered people in a growing company. Everybody is jealous of the favors these guys receive. But, when in trouble, companies would dismantle all the innovation groups, and execution not innovation would be the “in thing”. The frustrated innovators could be located in canteens saying “It’s not the same company”.
Frequent and too many promotions: Many of your colleagues along with you are getting promoted very early? This is a sign of trouble because either the attrition has forced management to use promotions as an employee retention tool or the company is short of skilled people. The company would say that your promotion shows that we have “depth in leadership”, which implies that there is vacuum at the top.
Vision, mission takes high priority: One fine morning, have you been forced to understand (rather memorize) what the company‘s vision and mission is all about? If so, it is because the top management believes that company’s failure is because employees don’t attach them to the company. I trust that the vision and mission are inculcated in the employees by the working culture, not by making it mandatory to cram them.
If you observe these symptoms in your company, I suspect, you are also riding a drowning ship like me. Having said all this, I would suggest you NOT to leave the troubled company. If your company is the only one in trouble, stay back because you can “grow by attrition”, which will be faster than any other growth. If there is a recession and almost all companies are in trouble, stay back as there would be no one outside to take you.
Hence, I am enjoying the ride on this drowning ship with a beer mug, which is “half full”. And, I will stay back until either I am the last man on the top or some other ship chips in for rescue.
Being an early bird to witness a decline phase, I would like to share the symptoms that indicate whether a company is in trouble. Traditional indicators like the stock price and annual reports cannot be believed because they can raise false alarms due to the very nature of financial markets. So, following is the list of symptoms, which I believe indicates a decline phase:
Confusion prevails: One day your company is selling a medicine to keep people awake, next day it sells a drug which gives a momentary kick, and some other day it sells a refreshing drink but internally you are manufacturing coffee on all the three days. Do you find your product being sold under different umbrellas? Do you see lot of reorganizations, which do not affect your regular engineering work? Boy, beware! The company is finding no takers of their story in the market.
Innovators look frustrated: Innovators (or researchers) are the most pampered people in a growing company. Everybody is jealous of the favors these guys receive. But, when in trouble, companies would dismantle all the innovation groups, and execution not innovation would be the “in thing”. The frustrated innovators could be located in canteens saying “It’s not the same company”.
Frequent and too many promotions: Many of your colleagues along with you are getting promoted very early? This is a sign of trouble because either the attrition has forced management to use promotions as an employee retention tool or the company is short of skilled people. The company would say that your promotion shows that we have “depth in leadership”, which implies that there is vacuum at the top.
Vision, mission takes high priority: One fine morning, have you been forced to understand (rather memorize) what the company‘s vision and mission is all about? If so, it is because the top management believes that company’s failure is because employees don’t attach them to the company. I trust that the vision and mission are inculcated in the employees by the working culture, not by making it mandatory to cram them.
If you observe these symptoms in your company, I suspect, you are also riding a drowning ship like me. Having said all this, I would suggest you NOT to leave the troubled company. If your company is the only one in trouble, stay back because you can “grow by attrition”, which will be faster than any other growth. If there is a recession and almost all companies are in trouble, stay back as there would be no one outside to take you.
Hence, I am enjoying the ride on this drowning ship with a beer mug, which is “half full”. And, I will stay back until either I am the last man on the top or some other ship chips in for rescue.
3 comments:
Thats quite articulate of you, Mr Bhanawat. Reorg is the easiest and most
random solution to rectify all the wrongs with an organization..
Reorg;s logic is "Just change the driver and believe that you will be probably lucky with the new driver".. But the problem is patience reduces exponentially with every change triggering further quick changes..
And very true about personal gains in drowning company.. Going by that, you can achieve the goal within ur company itelf :-)
I wouldnt agree with the premises.
Companies repackaging or creating new offerings is a sign of dyanamism. As a startup Intel invented RAM modules but were driven out of the market by the Japanese who could innovate on the manufacturing. When faced with this inflexion point, they stopped manufacturing RAM and got into processors.But again on the other hand there is a Bajaj which has unwittingly vacated every market to new comers by changing its offerings and not being able to compete with the incumbents. The trick is in knowing whether you are working for an Intel or a Bajaj.
As for innovators,I think too many innovators probably bought your company to the pass that it kept changing offerings without (in your opinion) good reason. Its time they rewarded the Implementors :) .
Frequent and too many promotions is just designation inflation, the designations loose their value. It probably means some innovative dogbert in your org decided that calling a delivery manager a senior director would have the effect of transforming a horse into a duck.Too bad for the swans.
As for growth Mr Bhanawat, I seriously disagree with your definition. Growth is not about designation inflation but adding to your capabilities and becomming a better person everyday. Just as the market in the short term is a voting machine but in the long term a weighing machine; designations are just a lot of votes ,growth IMHO means becomming heavier as a result of multitute abilities.
Thats quite a piece of research and analysis I would say. I too have been a keen observer(silent & dormant and fascinated) of IT industry. What I have noticed is not at all different. These companies dont go by emotional or psychic rules but by margins. An employee is a pet resource and needs to be fed properly. What is reorganisation ,,,,,nothing but keeping a photocopier along with a STD-PCO to increase business.Terms like Rajendra says DYANAMISM is optimistic but too emotional just like calling a cloud burst 'lovers delight'.
And as far as designations are concerned they do matter . Nobody will like to work as a programmer for 7 figures and be called a HOUSEKEEPER or FLOORBOY. Rajendrs you talk about dyanamism and disagree with designation? Dont get so theoritically emotional but try and grasp the reality.
One has to look as an emloyee not as a board member as board rooms are busy counting & menting coins.Believe me I have been to many.
What we talk and discuss is about are the decisions already made.
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