After working in the software industry for several years, I’ve seen a number of companies tumbling because of their rather not so convincing software development strategy. Post 2008 economic crisis, software firms have had constrained budgets and extreme cost-cutting measures. The situation forced many CEOs to focus on outsourced software development strategy, which meant CEOs losing a grip over the entire software development lifecycle.
On one hand, there were companies that just outsourced their projects to low cost consulting firms and forgot about it till they were delivered. And on the other hand, there were companies that despite outsourcing, valued their involvement throughout the development cycle. It was evident that the CEOs who remained focused in their involvement with this lifecycle, along with the outsourcing company, had little or no problem when they enhanced their products without the outsourcing company or with the new partners.
But others just had no clue on how to proceed with their strategy any further. Once again, it shows why CEOs have to be part of the entire strategy and not just in early decision making, and this is not the case in just the software industry, but every other industry.
Big software companies also struggle to sustain their growth when they start paying little heed to innovation. It’s observed that big software companies, especially those that are market leaders, start losing their market competitiveness once they start ignoring innovation. Innovation is but of course tightly linked with the culture of the company. Leaders and managers that really want to build revolutionary products always first try to create an open environment for idea exchanges and freedom to execute relevant breakthrough product ideas.
At Oracle, my previous employer, I observed leaders that had created a very congenial work culture. Teams' ideas were given high importance; not only were they rewarded, but also provided with clear road maps for execution and training schedules. This acted like a nuclear reaction and evolved more new ideas from other teams. At least, if not implemented, all ideas were heard and given ample thought in terms of consumer value before being dumped. Market leaders like Oracle could easily collapse if they don’t have the culture to sustain and grow, but they continue to enhance and maintain their unique culture of innovation and openness.
A company’s culture can’t be created overnight: it’s a daily practice. Not for a few days, but for months or maybe even for years. One of the critical factors that matters the most in culture creation is people! I’ve experienced managers who were very passionate, but who imposed their passion on others. Unfortunately, they were not able to convey their motive in the correct way. One of the managers that I've known had a very authoritarian style of management, but he wasn’t empathetic. The team suffered from low morale and obviously no support whatsoever from the manager.
Another really critical factor for a manager to lead a team is being patient in difficult situations. One of my managers at Verizon Communications, an American broadband and telecoms company and component of the Dow Jones, was an epitome of calmness; he literally never blinked an eye, even in the toughest of situations.
I remember one day when the team didn't understand the customer requirements and created a wrong software prototype, which resulted in both missed timeline and extra cost for the project. The manager was not so worried about finding faults, but more focused on successful task delivery. Later when the project was delivered, he then had retrospection sessions with the team, which dearly helped them improve. This created an extraordinary learning environment within the team that has since delivered top results.
Clearly there is no right or wrong way of doing things as a leader, but the foundation remains the same. As a leader, try engaging your staff and keep harnessing the positive learning culture at your firm. The rest will certainly take care of itself.
Student Reviews
WHU – Otto Beisheim School of Management
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