Thursday, December 1, 2011

Are you a "A" player?...

An excerpt from Anythings Possible: Thoughts on Entrepreneurship and Venture Capital by Eric Paley...

“The large company corporate world is filled with C players.  The term “Peter Principle” was coined to describe this phenomenon in which people in large companies are promoted exactly one pay grade beyond what they can competently do and then stay in that role for the rest of their careers.  Large companies thrive on inertia and the core job description of a large company employee is to keep that inertia going and do nothing to screw it up.  If last year’s top line grew 8%, the job is to grow it 8% again, not to figure out how to make a step function change and grow it 20%. In attempting to achieve that 20% step function change, there is high risk of a misstep that could lead to a decline in sales.  That’s simply unacceptable.

Large companies fire those who get F grades, because they are not at all productive.  They accept C players, because they are somewhat productive with guidance and B players are hard to find. It is very easy for a C player to seem moderately successful when progress is largely based on inertia.   Large corporations celebrate B players who can competently complete their job with minimum coaching and maintain inertia.  These are the heroes of large corporations. Innovation within a function is risky and can threaten inertia.

Large companies have very few A players.  A players don’t want to be at large companies because, more often than not, corporate bureaucracy and process not only fail to reward, but actually punish A players.  By putting the objectives ahead of process and politics, A players step on bureaucratic toes and don’t retreat based on false territorial claims.  Though there are exceptions, few large corporations create cultures that give A players room to win.  It’s not fun trying to innovate at a large company when co-workers feel that you’re threatening the core inertia on which the business is based.  They’ll say things like “that’s just not the way things work around here.”

1 comment:

  1. this post is def on point!! thank you!