Big companies change a lot

After speaking in Chicago on Friday, I spent a delightful couple of hours waiting out flight delays. (Yeah, I don’t think I’ve written that sentence before, either.) I was hanging out with fellow speaker Chris Silver Smith, with whom I swapped life stories. When I mention that I’ve worked for IBM for over 28 years, Chris said something insightful—”Wow, that’s a lot of change.”


And it has been a lot of change.
Most people don’t react that way. Most folks say something like, “I could never work for one company for that long.” But Chris worked for Verizon for ten years and knows that when a company is big enough, you can change jobs within the company every couple of years—it’s not really like working for a small company for many years.
And Chris was right about the amount of change. The IBM I joined years ago was a very paternalistic (maternalistic?) culture, where excellence occurred but was not really rewarded. IBM famously promised lifetime employment—no layoffs—rarely firing anyone even for incompetence. When it came time to give out annual raises, I used to joke that they’d rather give ten people a dime than one person a dollar.
IBM’s near-death experience in the early ’90s caused it to modernize its approach to emphasize value to the customer rather than value to its own employees, a wrenching but needed culture change. The IBM I work for now is a better fit for me, because it puts up with my idiosyncrasies in return for the value that I bring. The old IBM rewarded conformity to an extent that left me feeling unrewarded.
Looking ahead, I see that big companies will increasingly be buffeted by external events and will need to be as adaptable as IBM has been during my tenure. Time was that big companies were so big and powerful that they could ignore market forces and technological change for a period of time before it became a crisis. I believe that the window of time for being out of touch is closing—external forces catch up with you faster and faster these days.
The cool thing about economics is that when your company gets so big that it forgets how to do anything, economic forces start shrinking the company until it is forced to remember again. The new forces that democratize marketing—all that cool Web 2.0 stuff such as blogs and podcasts and product ratings and the like—make it harder to stay out of touch for any length of time. Your customers will bring you back into line quickly, no matter how much your company might like to ignore them.
Small companies have always been this way, but I think Web 2.0 is forcing a small company mindset on even the largest firms. If you work for a big company, are you listening to your customers? Are you reading the message boards? Do you watch where they go on your Web site? Most importantly, do you change what you do in response?
As Chris says, that’s a lot of change.

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Mike Moran

Mike Moran is an expert in digital marketing, search technology, social media, text analytics, web personalization, and web metrics, who, as a Certified Speaking Professional, regularly makes speaking appearances. Mike’s previous appearances include keynote speaking appearances worldwide. Mike serves as a senior strategist for Converseon, an AI powered consumer intelligence technology and consulting firm. He is also a senior strategist for SoloSegment, a marketing automation software solutions and services firm. Mike also serves as a member of the Board of Directors of SEMPO. Mike spent 30 years at IBM, rising to Distinguished Engineer, an executive-level technical position. Mike held various roles in his IBM career, including eight years at IBM’s customer-facing website, ibm.com, most recently as the Manager of ibm.com Web Experience, where he led 65 information architects, web designers, webmasters, programmers, and technical architects around the world. Mike's newest book is Outside-In Marketing with world-renowned author James Mathewson. He is co-author of the best-selling Search Engine Marketing, Inc. (with fellow search marketing expert Bill Hunt), now in its Third Edition. Mike is also the author of the acclaimed internet marketing book, Do It Wrong Quickly: How the Web Changes the Old Marketing Rules, named one of best business books of 2007 by the Miami Herald. Mike founded and writes for Biznology® and writes regularly for other blogs. In addition to Mike’s broad technical background, he holds an Advanced Certificate in Market Management Practice from the Royal UK Charter Institute of Marketing and is a Visiting Lecturer at the University of Virginia’s Darden School of Business. He also teaches at Rutgers Business School. He is a Senior Fellow at the Society for New Communications Research. Mike worked at ibm.com from 1998 through 2006, pioneering IBM’s successful search marketing program. IBM’s website of over two million pages was a classic “big company” website that has traditionally been difficult to optimize for search marketing. Mike, working with Bill Hunt, developed a strategy for search engine marketing that works for any business, large or small. Moran and Hunt spearheaded IBM’s content improvement that has resulted in dramatic gains in traffic from Google and other internet portals.

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