Break the Rules of How Business is Done
Making just small changes to how you do business inside and
outside the company can help you attract bright employees and increase
innovation, argues Julia B. Austin.
In addition to creating a new company that is disrupting the
status quo, many founders are also challenging the old norms of how businesses
operate in order to add value. When you are struggling to raise capital, hire,
and scale your business, is there time and energy available to also rethink how
you do business in general? How much effort do you want to put in to stand out
as a company not only creating something spectacular, but also a company that
differentiates itself as an employer? What truly matters in the end is whether
that transformational effort adds value.
In 2012, the gaming company Valve published their novel Employee
Handbook which outlined their organization structure (or lack thereof). Valve
challenged the notion of having assigned projects to work on or managers to
report to. Many other companies have taken similar approaches not only to
attempt to operate more efficiently, but also to attract and retain talent by
differentiating their companies from the mainstream.
Whether or not the super flat organization or self-directed
projects works, these companies have challenged the standard on how business
are “supposed” to run. One could argue that these attempts to be different are
distracting and time consuming when the work just needs to get done. However, by
taking a chance at doing something different, not only are they attracting new
talent, these companies are fueling creativity and innovation across their
organizations.
Transforming your business doesn’t always have to be time
consuming or distracting. The company Amplitude challenged how businesses
handle equity compensation by extending the company options exercise windows to
years versus the standard 90-day window most companies offer. Amplitude also
helps employees understand the complexity of their equity plans by outlining in
detail the possible scenarios and potential outcomes of their particular
grants.
The message here is A) you add value to this company and should
benefit from it well into the future and B) we want to be sure you fully
understand that value as an important member of our team. I imagine neither the
window extension or transparency tactics were very time consuming or
distracting to implement (well, perhaps the former took some selling to their
investors!), but they certainly make this company stand out as an employer and
innovator.
Most recently, eShares has stepped up their game by revamping
the offer letter. CEO Henry Ward decided that, being in the business of equity
management, they should excel in helping job candidates and new employees fully
understand what it means to have options in their company. There’s even more to
it though, as the offer letter outlines very clearly where a new hire will sit
in the organization and what their first week of work will look like. They have
transformed the on-boarding process by starting with the offer letter vs.
waiting for a new employee to sign and come on board. Perhaps this is an
attempt at self fulfilling prophesy (if we tell them about their first week,
they’re more likely to accept our offer!), but regardless, the effort to be
transparent sets this company apart from so many of the humdrum companies doing
the same old thing.
Just because it’s been done that way forever, doesn’t always
mean it’s the best way to do business and it certainly won’t set you apart from
your competitors. Many entrepreneurs are getting advice from old-school
investors and advisors who saw it done a certain way that worked in their day,
but that doesn’t mean that’s how it has to be done. If you choose to take a new
approach, don’t do it for the sake of being different, do it because it either
enables your company to run more efficiently and/or it adds value for your
employees or customers.
by Julia B. Austin
from the author's blog post, Adding Value by
Transforming Your Business
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