Small company advantage

Below tweet appeared on my timeline.

The tweet brought back a quote(paraphrased from memory; I do not know the author).

Every employee does two jobs. The job and the job to prove that they are doing the job.

Arduous performance reviews, stakeholder management, timeline-based project managementlong term project planningjustifying project delays, and creating visibility are typically the work that one does to prove that they are working.

In a big organization with multiple layers of management and divisions, it might be tough to avoid these. There is no reason why a small business should follow the same policies and work style. Small companies should be optimizing for output.

A big business CEO has to be a master capital allocator. A small business CEO has to be a master resource allocator. Small businesses are perennially short of resources. An employees’ time is one of the most scarce and valuable resources for a small business. A small business should do whatever it can to maximize employees’ productive time. That means cutting all the things that people do to prove that they are adding value.

A small business’s competitive advantage comes from creating an environment where employees can spend their time creating value instead of posturing.

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Photo by Engin Akyurt from Pexels

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