Business | Opinion
Growing through the 'people hurdle'
Something very strange happens to companies once they attain a staff strength of around 50.
- By Mike Southon, Special to Gulf News
- Published: 00:30 October 9, 2008
Something very strange happens to companies once they attain a staff strength of around 50.
The original enthusiasm has long since disappeared, and communication seems to be breaking down. Early members of staff rail against the inevitable new processes, and new people pour scorn on perceived amateurish behaviour.
As a serial entrepreneur, with the grey hair to prove it, I've personally experienced this phenomenon many times. So has Sir Robin Saxby, formally founding chief executive and chairman of microprocessor technology company ARM Holdings, now a role model for UK technology entrepreneurs.
I met him recently and he explained to me that the hardest time he remembered was when the business went from about 30 to 60 people. ARM had a situation where the demand for their technology was greater than the resources, so they had to find a lot of people quickly, with the inevitable requirement to train the new people and at the same time deliver to the customers.
Difficult time
Warren East, the current ARM chief executive, was hired at this time from Texas Instruments initially to manage the consultancy business. I'm sure the first thing he did was put in some simple processes and procedures, much to the dismay of some of the staff. I often say the precise moment when a company goes from a tribe to a corporation is the day a lock appears on the stationery cupboard.
There is no simple solution to getting through this transition. You have to grit your teeth, hire professional managers, and cope with the inevitable exit of a few disgruntled staff members.
But if you come though this barrier there is some breathing space until the next "people hurdle", which comes at around 150. Seventeen years later, there are more than 1,700 people in ARM and you can find their chip technology everywhere.
Giving back
If you are as successful as ARM you can of course give something back. Sir Robin got into this early, at his alma mater Liverpool University, running events. He ran the best dances and bought every block in his hall of residence a washing machine and tumble dryer out of the profits. More recently he has helped set up a management school.
Sir Robin has always been good at spotting opportunities and talent. After working for Motorola, Henderson Security Systems and European Silicon Structures, he found himself in a pub with twelve engineers. Tudor Brown was appointed head of engineering. Today he is the chief operating officer. But two other engineers had a bit of a surprise. Jamie Urquhart and Mike Muller were told they were going to be in charge of sales and marketing respectively.
Sir Robin saw that Jamie was very friendly, communicative, and personable, a natural salesman, and Mike had the essence of good marketing, the ability to describe what you have in clear ways that people can understand.
This is a key success factor for an ambitious start-up. It is all about getting the delivery people involved in sales and marketing. It is dangerous to have a silo mentality, where there is a lack of communication between sales and delivery. ARM is clear proof that good engineers can sell. All you need to be is personable, be able to listen and project.
The writer is a best-selling author, keynote speaker and entrepreneur mentor.
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