Economy & Finance

Big Versus Small: Obstacles When Execs Move To Different-Sized Companies

Jake Zabkowicz is CEO of Hudson RPO, a global recruiting firm serving all levels of organizations, from entry-level to the C-Suite.

For some executives, “making it” means moving from a senior position at a smaller organization to a larger, more well-known company. For others, moving to a smaller company allows them to take on a role with more responsibility. And while either one may seem like a good career move, there’s a lot more to consider than just size and scope.

A move in either direction requires significant adjustments in leadership style, expectations and daily operations. Here, I’ll delve into the nuances of leading in both environments to offer executives making these transitions some considerations to keep in mind.

Making The Move From Small To Big

Leaders moving to large companies must navigate bureaucracy; these organizations may have established processes and hierarchies that can be cumbersome and slow to change. Execs may also find it difficult to see the immediate impact of their decisions due to the larger scale and complexity. Adapting to the formal and often bureaucratic culture of a large enterprise can be daunting (and frustrating) for those used to a more entrepreneurial environment.

Despite these challenges, large companies offer extensive resources, including advanced technology, training programs and a vast talent pool. Leaders can focus on their areas of expertise, leveraging specialized teams and departments. Additionally, the broader structure provides more opportunities for career growth and development within the organization. But to really capitalize, new leaders must first understand the assets at their fingertips—both from a people and a process perspective—and navigate the best ways to maximize them for success.

One key is understanding they must cede many of the responsibilities they once had, including decisions that were theirs alone, to trusted team members. That means sharpening their influence skills to build trust and create a willingness for team members to go the extra mile. There will also sometimes be a need to check their egos at the door, understanding that decisions may not always be what they would have chosen.

Shifting From Big To Small

When moving from a large company to a smaller one, leaders often find themselves in a more hands-on role. They must roll up their sleeves and get more involved in the day-to-day of things. In a large organization, leaders have access to extensive personnel, allowing them to delegate more effectively. However, in smaller companies, leaders must be agile, often wearing multiple hats to ensure all tasks are completed.

This transition comes with several challenges. Unlike large enterprises with abundant tools, technology and personnel, smaller organizations require leaders to work with limited resources. Thus, leaders in smaller companies often handle a wider range of duties, from strategic planning to operational tasks, which necessitates a versatile skill set. Additionally, transitioning from a structured, process-driven environment to a more flexible, entrepreneurial one can be challenging. Leaders must adapt to a less formal and more dynamic work culture.

However, this shift also presents unique opportunities. Leaders in smaller organizations often have a clearer view of the company’s overall operations, enabling them to make more direct and immediate impacts. The smaller team size fosters stronger interpersonal relationships and a more cohesive work environment. Furthermore, the lack of rigid structures allows for greater innovation and flexibility in decision-making.

Transition Tips

For executives making these transitions, from either small to big or big to small, adaptability and relationship-building skills are critical. Knowing the right questions to ask and the right contacts to make and building strong relationships within the organization is crucial for navigating the new environment and understanding the organization’s culture and processes.

Executives should listen and observe, taking time to understand the new environment and its unique challenges. As the saying goes, “Be quick to listen and slow to speak.” Executives must approach new roles with humility, acknowledging that each organization has its own set of standards and needs. It’s important to listen and adapt rather than imposing methods from previous employers.

Moreover, it’s crucial for leaders to maintain an open line of communication with their teams during such transitions. Regular check-ins and feedback sessions can help identify potential issues early on and foster a culture of transparency and trust. Open communication channels can make a significant difference in how smoothly the transition goes for everyone involved. This includes being approachable and responsive to team members’ needs. This proactive approach not only helps in managing expectations but also ensures that the team feels supported and engaged throughout the process.

Final Thoughts

Transitioning between large and small organizations demands a strategic approach and an open mind. Leaders must be prepared to adapt their strategies and operations to fit the new environment while leveraging their previous experiences. The key lies in listening, learning and building strong relationships within the organization.

Whether moving from a large enterprise to a smaller company or vice versa, these transitions offer valuable opportunities for growth.

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