5 ms·
The biggest problem is what the article touches on, loss of the best employees. They kept who they thought were key, but the best employees, the ones who reall
by redm 9y ago
The biggest problem is what the article touches on, loss of the best employees. They kept who they thought were key, but the best employees, the ones who really move the needle and have lots of other opportunities are out the door first.
Losing your best talent means time to market goes up for new products and quality goes down. It's also really hard to get top talent again. This makes a bad situation far worse and its why so few companies can recover.
On top of that, the investors are going to push for a sale or write off the company completely. It becomes toxic very quickly.
There's still time for SoundCloud, it still has value, but they have to make some good choices in the near term.
- brandnewlow 9y agoTo take things further, these failed companies become zombies, and like zombies, they become more than just toxic, they become dangerous. When your good people start leaving, you replace them with OK people. When THOSE people leave you replace them with anyone with a pulse. Those people eventually screw things up and you wind up with data breaches and the like which further screw over customers, shareholders, employees or all of the above. Zombie companies are bad news.
- di4na 9y agoAt the same time, Netflix discovered that keeping only the good one accelerate your time to market and productivity by a huge factor.