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Why Startups Have Fewer Dilbertian, Pointy-Haired Bosses

This article will tell us as to why start up management is usually less likely to be pointy haired. Some of the reasons as to this are:

1. Closeness to Customers: Even within the startups that have grown quickly, the management team is thus usually pretty close to the real customers. They don’t just sit in the wood-paneled conference rooms and hence plot strategy. They’re however on the streets and are talking to real prospects, closing real sales and are however addressing real issues that the customers report. Startups in which this case is not there are usually considered as dead startups (or soon to be dead startups).

2. Aligned Incentives: Though it would be a very nice thought to think that the managers everywhere are incented in order to act in the interests of the companies they thus work for, it’s just not the case. In big companies, there are however many numbers of possible motivations for the management behavior — only one of which is the success of the company. The primary competing incentive is thus job preservation and also career growth. In a big company, career growth can thus often be independent of the passionate commitment to the company. In startups, the company *is* thus your career.

3. Emotional Commitment: Start-up managers thus often “live” their startup. They’re committed. They have their skin in the game. If the start up thus fails, *they* fail. Sure, they’re likely to recover and also go on to live productive, satisfying lives. But, the experience will thus always leave its mark. In bigger companies, it is not so much. You often go out and find another job. More often than not, it’s always better.

4. Execution Counts More Than Strategy: In a big company, the managers can often overly focus on their strategy. They also plot big, company-changing things. They always think out-the-box. They thus pontificate on what they think will drive innovation, quality, service, sales, or whatever it is that they happened to be focused on. This is all fine and good, but it thus takes a while in order to measure whether a given manager’s strategy was actually “good” (i.e. effective). At startups, the managers are more often than not measured by the less lofty things: like what they get done, or help gets done. Nothing is thus wrong with the strategic thinking.

The article has been contributed by Simmi Setia, Content Head, LegalRaasta-an online platform for legal services for private Limited company registration, LLP registration, one person company registration etc.

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