Big and small, small and big

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I often get asked why I no longer work for a large company, where the money is greater.  I admit that I consider it on occasion (like when I wonder why I don’t visit my favorite cities every month like I used to), but, generally, I don’t have that strong desire.  It helps that I am the Chief Executive of my firm, and serve as advisor to other CEO’s, and as CFO or CRO for still other entities.

I love our corporate culture.  And, I love being able to influence the corporate culture of many of our clients.  When a company is smaller, you are talking about just a handful of folks in a room who get to set the tone.  When the company is larger (on the order of a 1000 or so), the culture can still be honed, when there is a critical mass involved.  But, once the company is really large- then it’s a monumental, decade-long task.  (Look at HP and see their attempts to adjust to the new reality of the marketplace- which they should have seen coming- over the past five years.  3 CEOs?)

I have had the ability to make an impact- on my company and upon my clients’ enterprises. By the way, that’s true for most folks at small companies.  The work done is clearly seen- for good and for bad.  And, agility is rewarded more than caution.  Trying to do the right thing and failing is better than making no decision.  Using HP again, Leo Apotheker tried to change HP and shake up its product lines by buying PalmOS (calling it WebOS) to compete in the tablet market and to control  their own marketplace for laptops, only to have HP dump WebOS and him, in short (and opposite) order.

And, in spite of all the tripe about transparency (our company is transparent, our government is transparent), smaller companies generally are the most transparent.  You’ll know what’s going on.  No,  you won’t (usually) have access to salaries, board information, investor relations, but you will know pretty much everything else.  You will affect or know: how the company grows, which decisions were made- and why, and its reactions to changes in the marketplace.  Whether you elect to start your own company or join another (even a larger one) in the future, that knowledge is priceless.

Yes, the compensation is lower.  If I were working with a larger firm, my compensation would be at least five, if not twenty, times its current level.  And, yes, that money would let me do certain things I don’t do now.   And, yes, it’s tempting. But, like many of our clients’ employees, whose pay is about ½ of what it would be at a Fortune 500 firm, they like the freedom to do and be involved they can’t get at the larger firms.

I recall once being ordered to take a plane to come to headquarters, instead of  driving there.  And, of course, Agony Airlines did what it did best.  My flight from Boston to Elmira was delayed, diverted, and ended up bussing me from Birmingham.  Which took 1 hour longer than my drive would have- without speeding.  Which is why I didn’t fly the route regularly.  Or, when I chartered a plane to fly my team from the research location to corporate headquarters.  Saving  $ 1000 in air fare- to be yelled at that only the CEO can charter airplanes.

And, there’s a larger risk with the smaller firm(s).  Where the sales of the firm are often based upon three, four, or five large customers or clients.  Some of the firms only have a six month runway (how much cash is in the bank to keep the company afloat)- and then what?  But, if you are good, and you have been useful in setting up the company or growing the company- even in today’s economy- you will be employable- and quickly.   (By the way, this is why all companies need to be looking to broaden their base- and should use our services to do just that before they feel desperate, so as to engage the new customers/clients from a position of strength.)

But, there’s another factor.  Larger companies (unless you are the CEO, and, even then…) want you to be outstandingly honed to the one or two things for which you are responsible.  They don’t want you to be involved in the financial efforts, the corporate infrastructure, the new product designs, the website, the marketing…And, in my case, with strong academic backgrounds and experience in chemical engineering, medical product design, biotechnology, water treatment, marketing, finance, taxation, logistics, and management, they throw up their hands.  A smaller company of 1000 folks or less is desperate to find a consultant, a CXO, or an advisor that has these talents. Decide whether you want larger pay and  stability (not that large companies still have that “employment compact” of the past) or agility and transparency.   Your choice must match your personality.

Roy A. Ackerman, Ph.D., E.A.

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16 thoughts on “Big and small, small and big”

  1. Everything you said is soooooo true, Dr. A. A lot of people think bigger is always better, but some of my best corp experiences came from smaller corps. You cannot really put a price tag on what you learn when working in that kind of culture even if the pay isn’t as good. So for me and my personality, I like working in smaller corps. I love the fact that in them I get to use my skills in a more diverse way. A larger company might hire me to do one job that I do well, but that gets boring. I’d rather be hired to do one job and end up doing multiple things that always keeps me challenged.
    Lisa Brandel recently posted..The Painted Lady by Lisa Brandel

  2. It really comes down to how do you define success and what lifestyle choices do you wish to make. What is wonderful is to see there are options and that each brings its own rewards and challenges. From there, we have a choice. So defining the core values, how we want our days and weeks to look and what our needs/wants are relative to our resources can really make it clear what the best fit is. Remembering, too, that we can always make a different choice if priorities/needs change instead of thinking that what we choose now is what we’re choosing for life takes the pressure off. Personally, I’ve never fit into corporate and, therefore, have been a lifelong freelancer or self-employed person.
    Tambre Leighn/coaching by tambre recently posted..Walking Works of Art

  3. Sigh. Even with the skills I have, I am only worth a little more than minimum wage. You are a man with lots of education and experience. You see successful people in your line of work. Then there are the rest of us, many of us women, who don’t have your education and experience. We may be good at things, but we are either past our prime or without justifiable experience or we chose to raise our children at home rather than get the education and experience many men get. Whatever. I swim in the pond I found myself in and thank the SB everyday that I have a job at all. I’m glad that you had the choice of fishbowl. I hope that you, too, count your blessings, Roy. And I am certain that you do.
    Ann Mullen recently posted..How Asbestos Exposure has Affected Senior Citizens

    1. Ann, I am sure you are worth more than minimum wage. The trick is to obtain that value. One does not need education per se; your experiences render your value – and your ability to communicate renders your value…

      And, yes, I count my blessings each and every morning and night. They are part and parcel of my daily prayers.

  4. You share a number of interesting insights on this concept Roy. Not everything can be measured in terms of $ now can it? I coached a very stressed out man not that long ago who was offered a promotion which would end up causing him to travel a whole lot more. With a young family he was very upset at this and was shocked when the concept of turning down the promotion was suggested. He had not actually considered that a real option.
    Sometimes it really is about living for what matters to you…not societal expectations.
    Bonnie recently posted..Shoes, apple turnovers and a life lesson

    1. Yes, and no….
      I hope the young man asked for a session with his manager and his manager’s manager. He needed to explain his reasons for turning down the promotion NOW, but that he would love to consider it in three (five?) years hence. Moreover, that is not the same issue as the one I discussed, at least in general terms.
      I was talking about staying with small and mid-sized ventures, which affords me the opportunity to be the specialized generalist that I am; the opportunity to effect cultural changes more quickly, and to bring products to market with less bureaucratic delays. That is not the same thing as turning down a promotion that means one does not have to travel as much. Yes, it may affect his family’s culture (but since he IS working, it’s my guess that the mom, the nanny, or the caregiver has at least as much affect..)

      Roy

  5. Well… I was reading along and all at once you said ” want larger pay and stability.” If anyone looks for stability in a large corporation, they are barking up the wrong tree. The only stability a person has is what it’s inside of them; same with large amounts of pay. If you truly are in business for yourself and doing what you’re passionate about, then there is unlimited potential in every aspect. OK… now that I’m awake…. 😉

    1. There IS more stability in a larger corporation than a smaller one. That may not make one feel highly secure, but it is true. It is related to the fact that it takes longer for the Titanic to sink than a canoe or a rowboat- not that the canoe can’t maneuver more carefully- and through tighter straights. But, it takes one scratched hull or large wave to capsize the canoe…

      There no longer is a social contract between employer and employee- or even between a corporation and its management. And, while the employees are suffering as a result, the corporation has shortchanged its long term future with these changes, as well.

  6. After spending the early part of my career in the corporate world, I can safely say I’d never go back. Sure, I’d make twice what I make now, but my freedom to work my own hours and to work for myself is worth what I make. I can’t think of anyone who misses the corporate culture. Half of the time, corporate decisions (or decisions by committee) rarely make sense.

    Excellent post. Lots of good points to consider.
    Lisa Kanarek recently posted..All Dressed Up: Keeping the Family Organized

    1. Thanks for your consideration and visit, Lisa.
      I must admit, however, that besides the money, I do consider that my “platform”, had I stayed in the corporate world, would be more than a little larger than it is now. Considering that I had been offered the CEO position for a fairly large medical concern more than a few decades ago, who knows where I would be now (including exactly where I am)! And, steering a corporate titan could be very exciting…

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