It is so disturbing to know about some tech companies, including those which have achieved the coveted status of "Unicorn", laying off their staff in hundreds and even thousands.
Such staff might have dreamt that their companies would be achieving a status akin to Facebook or Amazon etc, and that they would be becoming millionaires, but now would have seen such dreams turning into their worst nightmares.
According to a news report, "After reaching sky-high valuations, tech companies the world over have seen the worst year of their lives amid surging inflation and interest rate hikes. Many are cutting jobs, and shutting parts of their operations to shore up balance sheers ahead of a potential recession".
So, was this status of "Unicorn" really worth it, except for the purpose of raising funds at astronomical valuations?
Some thoughts:
1. It's now time to relook at entire strategy adopted by some of such start-ups. From "fastest growth any cost", the paradigm shift should be - achieving "USPs" or "Unfair advantages" at "slow and steady pace", akin to the fable of hare and tortoise,
2. The headcount strategy should be based on "1-2-3" principle. That is, hire one, pay him or her the market level compensation of two, and assign responsibilities of three. That such a strategy would lead to better development of human resources, better motivational levels and lesser turnover, thereby positively benefitting the organizations as a whole in many way, is anyone's guess. Of course, this strategy needs to be supplemented with due care of the possible "burn-out" issues and need to rejuvenate the energy levels of their headcounts, and
3. The VCs etc who decide to finance such start-ups need to adopt a "three-legged race" mindset vis-a-vis their investee companies. They need to extend all possible support, besides being glued to their operational matters without any undue interference, so that they can offer constructive suggestions based upon their vast experience. That such a mindset would ultimately enable them (VCs etc), to realize superlative returns from their investee start-ups, is anyone's guess.
Such staff might have dreamt that their companies would be achieving a status akin to Facebook or Amazon etc, and that they would be becoming millionaires, but now would have seen such dreams turning into their worst nightmares.
According to a news report, "After reaching sky-high valuations, tech companies the world over have seen the worst year of their lives amid surging inflation and interest rate hikes. Many are cutting jobs, and shutting parts of their operations to shore up balance sheers ahead of a potential recession".
So, was this status of "Unicorn" really worth it, except for the purpose of raising funds at astronomical valuations?
Some thoughts:
1. It's now time to relook at entire strategy adopted by some of such start-ups. From "fastest growth any cost", the paradigm shift should be - achieving "USPs" or "Unfair advantages" at "slow and steady pace", akin to the fable of hare and tortoise,
2. The headcount strategy should be based on "1-2-3" principle. That is, hire one, pay him or her the market level compensation of two, and assign responsibilities of three. That such a strategy would lead to better development of human resources, better motivational levels and lesser turnover, thereby positively benefitting the organizations as a whole in many way, is anyone's guess. Of course, this strategy needs to be supplemented with due care of the possible "burn-out" issues and need to rejuvenate the energy levels of their headcounts, and
3. The VCs etc who decide to finance such start-ups need to adopt a "three-legged race" mindset vis-a-vis their investee companies. They need to extend all possible support, besides being glued to their operational matters without any undue interference, so that they can offer constructive suggestions based upon their vast experience. That such a mindset would ultimately enable them (VCs etc), to realize superlative returns from their investee start-ups, is anyone's guess.
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