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Companies end up this way because they become large and bureaucratic. The distance between the customer's mouth and the business leaders' ears becomes too grea

Companies end up this way because they become large and bureaucratic. The distance between the customer's mouth and the business leaders' ears becomes too great, and filled with too much noise. Every company, when starting out, tries to avoid going down this path (recall Google's "don't be evil" or Amazon's "it's always day 1") but they all eventually lose the spark, after becoming large enough. Large companies who have lost this spark eventually start hiring consultants and agile coaches in a desperate gasp to regain it (much like estranged couples hiring marriage counselors). This usually goes about as well as you might expect. I've never found a counterexample to this principle. I think the only real way to avoid it is to stay small.

piva00 3y ago
It's not about becoming large and bureaucratic, that's a result, not the cause, in my opinion. It's the result of having a large enough footprint to require legal checks, it's the result of having lots of investors and shareholders meddling with how the company should function (since those are only interested in ROI, and as fast as possible). When a company gives out its control to 3rd parties that are not involved in what the company does, and only cares about financial statements, it loses its spark. Not because they decided to lose it but that's how the market forces act: squeeze out as much as possible, for as little as possible, and call it a good day. The only counterpoint to that phenomenon is what some large-ish private companies do: stay private, don't get investment from external investors who haven't bought into what the company is providing as value to society, don't get investment from people looking to make their money 2-10x in a short period of time (short being around 10 years). The moment a company enters squarely into the current financial markets it's doomed to just become a carcass of whatever vision it had, it's now just another commodity. Edit: and every startup founder wants to be different and not fall for this, I don't think many manage, after some rounds of investment it's not in your power anymore to decide that, your VCs and other members in the cap table control you. "Silicon Valley" is such good satire exactly because it depicts almost exactly how that happens.
DanielHB 3y ago
It seems it does happens some times, but requires outside intervention. Usually in the form of lost value. For example Microsoft seems to be doing much better today after botching just about everything for 10+ years.

piva00 3y ago

It's not about becoming large and bureaucratic, that's a result, not the cause, in my opinion. It's the result of having a large enough footprint to require legal checks, it's the result of having lots of investors and shareholders meddling with how the company should function (since those are only interested in ROI, and as fast as possible). When a company gives out its control to 3rd parties that are not involved in what the company does, and only cares about financial statements, it loses its spark. Not because they decided to lose it but that's how the market forces act: squeeze out as much as possible, for as little as possible, and call it a good day. The only counterpoint to that phenomenon is what some large-ish private companies do: stay private, don't get investment from external investors who haven't bought into what the company is providing as value to society, don't get investment from people looking to make their money 2-10x in a short period of time (short being around 10 years). The moment a company enters squarely into the current financial markets it's doomed to just become a carcass of whatever vision it had, it's now just another commodity. Edit: and every startup founder wants to be different and not fall for this, I don't think many manage, after some rounds of investment it's not in your power anymore to decide that, your VCs and other members in the cap table control you. "Silicon Valley" is such good satire exactly because it depicts almost exactly how that happens.

DanielHB 3y ago

It seems it does happens some times, but requires outside intervention. Usually in the form of lost value. For example Microsoft seems to be doing much better today after botching just about everything for 10+ years.