Category: Business Page 3 of 18

Are you working for a tech company?

On May 23, 2020

Is the company you work for a “tech” company? What does this even mean in today’s world where almost every company would grind to a halt without its technology systems?

There appear to be short and long term answers to this question.

The short term answer is that when you’re disrupting an industry and trying to raise capital, calling yourself a tech company helps. It promises higher growth, more access to tech VC capital, higher appeal to talent and disruption through innovation. These are all critical for kickstarting your startup and so adopting a tech company mantra at a startup phase makes commercial sense.

The long term answer is more complicated. In my experience, there are a number of behaviours within a company that determine it’s true identity as a tech company:

Resourcing – At Google, the sales team proudly proclaim “we keep headcount tight so that we can invest in engineering”. Everyone knows the resource priority and it is actually realised. This is not purely a political hierarchy, the non-technical teams truly believe that only technology can scale fast enough to hit the audacious growth targets. There’s no such thing as “throwing bodies” at the problem – at least in terms of full time employees. Vendor or contractor growth however is a sign of masking an emerging problem here.
Growth Targets – Technology works best at scale. For example, most national retailers don’t need automated warehousing because the number of SKUs and locations is not that high. If you’re Amazon however, you absolutely need this technology automation to even have a chance of hitting your massive growth targets – it only later amortises to become a competitive advantage. Tech companies truly believe that their growth goals far outstrip any organic growth projection for the sector as a whole.
Time Horizon – Tesla believe that their most valuable asset will be the self-driving data accumulated over millions of kilometres of driving. This not only takes years of operating at scale to collect, but won’t become valuable until self-driving cars are truly pervasive and actually autonomous. It’s not a priority to fix the panel gaps on a $100k+ car, this will get fixed with scale and simplification. The core strategy and focus is their long term goal that requires almost puritan belief. This approach is certainly rooted in the evangelical beliefs of those who originally settled the west coast of the US.
Leadership – You can’t stay the course on these long term goals if your leader doesn’t have the engineering ability and credibility to constantly reinforce the mission. As Bond Capital put it, “successful companies are led by planners – they have short and long term (10-20+ year) visions and business plans focused on data, execution, iteration, engineering and science”. It’s not just CEOs that need engineering ability, but also the board and investors are required to be increasingly technical in order to understand and support the tech company’s long term vision.

So, do you still believe you work at a tech company?

Graduating from my INSEAD EMBA

By Scott Savage

On December 23, 2015

In Business, Personal, University

17 months, 52 days of full time study, 3 major assignments and 10 exams later I have finally graduated with my Global Executive MBA from INSEAD! Given I now have the benefit of hindsight, let me try and answer some of the big questions I had going into the program:

Should I do the MBA or EMBA?

The MBA has an average age around 28, and the EMBA 38. If you have minimal exposure to the basics of finance, marketing and operations for example and can afford a full year off then do the MBA. If however you just need to know enough to ask smart questions of your team, the cost of a year off is very high, and you have 8+ years experience then you should do the EMBA. Many people doing the EMBA are almost there in a mid-life crisis scenario – they have achieved a lot and are financially very comfortable, but have no idea what really makes them happy. The EMBA program is really set up to help you explore that.

Do the MBAs and EMBAs cover the same content?

Overall yes, however in a much shorter time. EMBA’s cover in 3 days what an MBA would cover in 12 days over 3 months. That means EMBA’s have more assumed knowledge, readings must be read and you never walk into an exam feeling really confident as you often have 12 hours post-lecture to prepare. The EMBA course is also more practical, it doesn’t go into the theory as deeply but is very strong on the implementation and case study side.

Why INSEAD over a US School?

INSEAD celebrates diversity in a big way. It’s a constant throughout teaching, participant selection, group selection and even social programs. I genuinely think part of the selection criteria is to maximise the number of participant countries more than pure test results. Group exams, simulations and projects are quite common. Traveling to electives is organised in groups, often with people sharing accommodation. Sharing summary sheets before exams is common. There is a real sense of shared destiny. One key observation I had was that in US programs the exam results are published to all members, and the bottom 5% given a warning – three warnings and you’re out. At INSEAD no results are published, and make-up exams are held quietly at a later date. Don’t get me wrong, people still fail and drop out, but everyone bonds together and that makes for a strong shared rather than individual experience. Networking is 50% of the reason people are here, so don’t underestimate the benefits of this culture. It’s also the #1 or #7 school in the world, depending on which program you take.

What was the hardest part?

The hardest part for me was the switching cost. By that I mean having a tough week at work, and then flying out to take a tough lecture on a totally different subject. I have learned that my brain loves to follow a long term focus and become great at it, so constantly disrupting that was at times even physically painful. I had to become comfortable with taking a day or two of constant effort to switch focus. If you don’t switch off work emails for example, then your brain never really internalises what you were meant to learn. You can’t look back at notes, it’s really experiential learning. By that I mean that the actual MBA content is pretty standard across all the programs I have seen. The exceptional part about INSEAD is the quality of lecturers – they are incredibly passionate, entertaining and challenging to listen to. As an introvert, I walked away from many lectures just needing and hour or so to sit and reflect on everything I had just heard.

Prioritising under pressure would be the second hardest part, but I feel that the program was structured in a way that it gradually made this harder rather than hitting you from day 1.

What was the best part?

The people. 95% of the participants were “just like me”, similar life stage and questions. It’s funny when you bring a group of highly successful people together and they all realise how lost each of us actually is. The first few modules are academic focused and people are still presenting a facade, but then one by one people open up and confess their flaws and insecurities. Some people have total breakdowns, some people quit their jobs and some get divorced. That’s not great in itself, but if people are actually facing issues that have bubbled under the surface then I do think that’s a great thing. Be warned though that taking the time to hold a mirror up to yourself can be dangerous! If you push through that phase though then you will have a more honest view of yourself and the world. You can address some things while in the program, but not all. I walk out of the program feeling more confident that I know myself and have the tools to make my life and the life of those around me genuinely better. I just hope I can hold onto this feeling.

How have I changed?

I don’t think I can objectively answer that. I filmed a before and after video, so maybe you can tell me?

Scott INSEAD Debrief

Watch this video on YouTube.

Life in Start-up Country

By Scott Savage

On June 26, 2011

In Business, Internet

Living in a corporate apartment in the SOMA district of San Francisco is pretty glamorous. Cheerios, bottled pasta sauce, a coffee percolator and a laptop on the couch. Still, it’s quite a good experience and I have enjoyed the feeling of being amongst it all. Luckily I actually still get a wage from a company that is doing better than break-even, so I guess I’m not really living the start-up lifestyle.

Meetings happen faster here, you don’t have to think about timezones and languages so much and you can talk to product face to face if you don’t agree with their direction. These are things that are easy to take for granted if you work in the US. On the flip side the diversity and distance challenges in APAC make it an incredibly exciting area to be working in.

It would be nice to have the best of both worlds, but not sure when or if that will happen. I’m starting to think that the best way to operate is to make APAC as self-sufficient as possible. Borrow the good things, and go it alone in areas you don’t agree. I think we can even get to the point where APAC is the innovative region and the US can learn from us. That sounds like an inspiring challenge to me. It’s not quite a start-up, but it’s the same skills right?