Undoubtedly, the journey of startups isn’t so easy and has a lot of uncertainty regarding talent. As raising funds get involved, startups are under high pressure to focus on profitability instead of rapid expansion. In order to cut costs, they are left with only one option to reduce the part of their employee base. Not only employees, but even the Executives sit in the big positions have to face the problems due to downsizing. The biggest example is ex-CEO of Flipkart – Sachin Bansal, performance was the reason that made him step down.
High attrition, lack of funds, shortage of demands, and slow growth rate are some of the few reasons why there is inconsistency in the startup era. Entrepreneurs are now following financial forethought; nevertheless, they really need to build a strong management team that will help them streamline their business divisions.
Let’s have a look at the Pros and Cons of having Temporary Leaders:
In order to keep an eye on rising costs, a new trend of hiring C-Level Executives is rapidly increasing. Well, this trend consists of a set of pros and cons. The startup companies must have strong leadership to create the right culture and make stability in the organization. Most startups are hiring C-level executives for a short period of time in order to build strong teams and bring structure to their process and function.
This trend can have an immense impact on the middle management teams as there is an immediate reporting structure and with each management change, there is a development in the team dynamics. Every employee wants stability in his/her job that contributes significantly to his/her job satisfaction. In the organization, the team wants to set goals and achieve them in a specified time of period. The change in any kind of leadership often results in expanding goals & strategies that might become the reason of dissatisfaction among employees.
When does a Temporary Leader Work
Even some well-known startups today are seeing high levels of depreciation as there is no transparency of who will be the leader in future and how will it impact the business goals since each leader has a different way of leading a team. While this process may not work for some organizations, it can be profitable for some. Today, most startups need an expert leader having through knowledge of a particular function, in order to make the right decisions at the right time. While this latest trend of employing the ex- C-Level Executives may work for some startup, it must be well thought of after analyzing the pros and cons.
Inspired From: Inc42