Yesterday, I had coffee with an old colleague of mine. We’ve followed different paths since we worked together–he ended up at a Fortune 50 company, and I went into”startups.” Even so, he’s a brilliantly smart guy, and it was very interesting to get his thoughts on the downturn, especially coming from his BigCo view.
His big thought (other than an AWESOME startup idea), I think, is a VERY important concept that I’d not really considered before. And, the logic is basically this.
Companies hire during upticks in the market. People hired in upticks in the market are in growing markets, and thus tend to perform well. These “middle performers” tend to become middle management–the “process implementers” in the company.
And, this is all well and good, as long as the market is upswinging. Why?
Because in an upturning, high growth market, it’s virtually impossible to tell who is “execution successful” from who is “market successful.”
But, when the market turns down, you very quickly come to realize that the emporer has no clothes. The processes you thought were best practices are simply “job security” for middle management, and are often a waste of time.
The market has turned down. There is no disputing this. And, in this downturn, the market isn’t pulling in your favor.
So, what are you left with? That’s right. Execution.
The downturn shows you clearly who is “execution successful” and who is “market successful.”
This is where the “startup” mentality plays well. While in startups we pick industries that are, by very definition high growth, we are usually in massively competitive markets. To be successful, you have to execute with limited funds, limited staff, and limited time. It tests the systems and the people. It tends to produce results.
Now is the time to think about your business growth. Which have you been, execution successful or market successful? And, what do you want to be? And, if you’ve been dependent on your market for success, isn’t it time you figured out and brought a little execution excellence to the table?