Aye, but fixing this also fixes operational cost and other long-term costs. There is no power without knowledge+experience especially in high level roles.
In the end, HR should extract the most value for the company, trying to combine interest of both employees/company into calculation. Sometime, the interest of an individual manager is not what is in the best interest of the company.
Thanks for reply Eric! I agree, and the problem is in the same way as with countries. Sure, you may have good leader and stability while the founder is alive - but once he goes, everything is ready to go up in flames.
The various gravitational forces within company eventually pull the company apart.
As you said, third way governance is really the key. At the end of the day founders in some cases should become chairman, to ensure that everything is functioning as set by constitution. Going into retirement and enjoying pension/stock options should be more common.
More or less unless you are considering Zuckerberg a cyborg. But jest aside, I was referring to a unique legal setup where he can not be forced out even if his decisions are catastrophically bad like whole thing with VR or good for shareholders.
I think that for example Zuckerberg has built a structure where he is basically irreplaceable. It had to do with A/B shares where, while having a lot less shares, he made sure to have the controlling ones.
While this is good while the founder is alive, it sort of begs the question how long will the company that has structure like that run after the founder is gone. I believe it could go to some family foundation that controls the company, but I guess that is still prone to corruption.
I think that there are a lot of interesting examples in gaming industry - founders start something and they are pushed from the company due to acquisition or by the shareholders. Let us not forget hostile takeovers too.
As for startups - I think that it depends a lot from where you come from. For example, being in Europe, Serbia, it is a lot harder to bootstrap startup or to find investors. The best bet is organizing startup as a C corp in Delaware via something like Stripe Atlas in order to get (hopefully) some foreign investors interested. Investors here want to extract value before there is one there, which is a short term thinking. This in turn lead to risk aversion, opening the country for outsourcing model which is now collapsing and where there is small percentage of product based companies.
When it comes to this I think that the main problem is with hiring practices of people opa. If you do not have people with education either in legal/economy psychology you are not getting good People Ops team. You need to have a maximum value team.
Also, an HR that has a right education can and will pushback against decisions that do not make sense such as removing employee that has essential know-how knowledge and that brings a value to the team.
The problem is that a lot of people in management do not want to hear feedback and only want to be surrounded by positive thinking and people that they can micromanage (even while the ship is sinking). Hiring people that do not have right education is basically a way to avoid any feedback and criticism, while having people that will do work that they are not really educated for, but happy because of the salary.
Another problem is gender disproportion in this field.
You can't expect a literature major in HRBP role to understand micro and macro organization of the business and how it is affected by various stuff.
My experience is mainly focused on human resources, administration and legal work ranging from contracts, advice on case, paperwork, recruiting, and any other administrative and HR task. In general one of the differences from the others that are doing the same thing is that I somewhat technical background due to being involved in few different projects during the years, so I can easily communicate with developers and also see when there is an actual issue in production or if someone is just delaying something or bluffing during interview. I also having managing experience, as I have been managing director of recruitment agency.
For those that want to open local office in Serbia, I can also help with that task and setting up teams, legal framework and other stuff necessary for opening office on new location.
Thanks for the recommendation. London sounds interesting. I was focusing on Europe first to see if the situation changed from few years ago when it came to VC's and funding in general.
The only need for any kind of investors in this case is really due to scaling as time goes, both in regards to infrastructure and employees.
Truth be told, the Sales or Business Development in this case is something that is key in order to break the ice in terms of B2B so that it would get others potentially interested in trying it out and using it.
Believe me, as European, too much bureaucracy and administration is something that is killing industry here.
With that said, I am open to any financing outside of Europe that invests in European startups/companies.
In the end, HR should extract the most value for the company, trying to combine interest of both employees/company into calculation. Sometime, the interest of an individual manager is not what is in the best interest of the company.