Big companies have resources, talent, and market reach, but compared to small start-ups with less resources, talent and reach they often seem to be slow and lumbering. Is this the inevitable result of becoming a large company? Many companies are slow but in a different sense from the big-versus-small comparison. Large company velocity takes into consideration "scale" and can still move nimbly and quickly within that context, but the complexity of scale often overwhelms the organization resulting in them becoming a slow and lumbering company.
Scale
To be fair to large companies, comparing launching something between a start-up and a large company isn't an apples-to-apples comparison because there's often a lot additional requirements placed on a companies that has reach a certain scale. Some of these requirements come externally (e.g. government regulations) and some internally (existing user base, supporting existing infrastructure and use cases).
It isn't lost on the employees how cumbersome internal requirements can be:
Having had to work on these systems, there are often valid reasons behind the requirements, but it can still be hair-pulling frustrating sometimes to have to consider all the additional requirements for what seems like a simple singular task. Objectively, though, the team within the large company might have a higher velocity then a team in a small company because for a given feature A, one had 10 requirements to meet while the other only had 3.
This doesn't mean that big companies are not slower than start-ups because many big companies looses their nimbleness due to self-inflicted wounds because of the complexity of increased scale:
- Complacency
- Hesitancy
- Bureaucracy: Navigating the corporate maze can feel like a full-time job (though, let's be real, some structure is necessary).
Complacency
The mantra of "If it ain't broke, don't fix it." can take hold at large companies especially those that have had success. This often comes from the top where the leadership is more comfortable keeping the status quo because things are going well and don't want to risk destabilizing the business. This isn't limited to just mature companies but can happen with growth companies.
No matter if the decision to just stay the course is correct or not, if the sense of complacency from the top seeps into rank-and-file then the culture of complacency will take hold.
Hesitancy
Fear stiles innovation and at large companies there can be a perception that more is at stake at both the company and individual levels. This hesitancy occurs at all levels of the organization. The CEOs might fear how a change will impact their bottom line and individual might fear how it will affect their prospects at the company.
Bureaucracy
When a company grows (a good problem to have!), bureaucracy sets in but bureaucracy itself isn't a bad thing. The truth is that when a company scales up it is going to become more complex and it will require organization. A small 3 person start-up doesn't need any process to communicate effectively, but a 100 member engineering org will descend into chaos without some agreed upon method for working together. Large companies often organically evolve into a matrix organization with defined roles and responsibilities, but fail to recognize the that they went from a single node to a graph of nodes. Company leaders continue to try to optimize each node and they ignore the edges connecting the nodes.
Big companies will have more people who can handle things at the node level while it is mainly the leadership who can affect the edges. The irony is that leadership often focus more on the nodes while their teams struggles to navigate through the edges.
Possible Solutions
So, how do we combat the corporate slow-down? While this isn't a complete solution, here are some strategies:
Embrace Small, Nimble Teams: Have small and empowered teams that can move nimbly. Give the team autonomy to solve the problem which helps against complacency and hesitancy. The small team also reduces need for a lot of process within the team for coordination. It is key for leaders to communicate with them on expectations, be transparent and show trust and support. Leaders should also focus on handling coordination between teams.
Provide a "Guide": Shield engineering teams from excessive corporate overhead. Dedicated project managers (not just program managers who push the burden onto engineers) can handle the administrative load. This is to address bureaucracy.
Focus on External Competition: Internal rivalry is a distraction. Aim for external benchmarks. This addresses complacency and hesitancy when there is an external opponent to focus on.
Leadership Support: Leadership should recognize that they created a matrix for the org and the teams don't need help at the node level but the edge traversal.
Maintain Momentum: Long projects can drain morale. Celebrate small wins and define clear milestones.
Instill Urgency: Set targets based on external market realities, ensuring team buy-in.
The key is to recognize that speed and agility aren't just startup perks. They're essential for any company that wants to thrive in today's fast-paced world. By addressing these challenges head-on, we can unlock the true potential of big companies and empower them to innovate at the speed of change.
