Sustainability

Thursday, February 23, 2006 03:30 AM

When we talk about sustainability for software businesses, everyone brings a very different perspective to the table.

There are those that would be happy to make it through the day without significant grief and disruption, where each new day brings a different set of surprises and challenges – sustainability equates to reactive survival, and there’s no point even looking for a more distant horizon.

Others can see past their daily trials and tribulations, and sustainability is measured on project completion, which may be weeks or months out. Daily activities are driven by this more or less distant (and often receding) point, and this context brings some measure of meaning to the work on their plate today.

We start getting into strategic thinking when we consider the parade of projects that will sustain the organization over a longer term, but even here there are shades of gray. There are times when this parade of projects is driven by what will have to be cut from the current release, a form of strategy that remains tactically driven. For most companies that think strategy, the horizons considered can be as short as the next quarter (especially if they are accountable to shareholders), the expected tenure of the new CEO (who will often work to quickly make his mark and exit with a nice package), or the anticipated IPO or acquisition.

None of these appear to be sustainability models to me. With new companies sprouting up with the intent from day one to be acquired as soon as possible (ruthlessly driving for more eyeballs than sound financials), with CEO’s specializing in quick turnarounds that reflect positively on the current quarter at the expense of downstream results, with VC’s focusing on their own IRR and liquidity events, identifying the companies that truly emphasize long-term sustainability becomes quite difficult to do. In this town, it can be a challenge require the fingers on my second hand to tally up the reasonable candidates.

At the executive level, it is rare to see an appreciation for true sustainability in business that goes beyond fiscal reward. Success is measured primarily in the packages negotiated and the toys accumulated, driven almost exclusively by tactical results. Indeed, those that stand out as prominent because they are driving a sustainable business (insert your truly visionary executive here…) do so because they are so rare in today’s world. It is difficult to focus past the tactical milestones, and requires a concerted effort from a well coordinated team – single-minded is often interpreted as “it’s my way or the highway”.

Below the executive level, most people aren’t normally expected to consider long-term sustainability; they’re the worker-bees that get the job done. While many at this level appear to be comfortable with an Orwellian approach such as this (at least initially in their careers), there is significant value and reward in contemplation and focus on the greater picture. Indeed, many of us need to understand the role we play in the larger context, and as we grow, we gain an appreciation for alignment with the overall vision – Maslow’s needs hierarchy in action. Those that are unable to gain that perspective in their current organization will eventually move on, and in doing so, impact the sustainability of the organization they are leaving.

At all levels, the key ingredient for sustainability is active involvement from all the people – being allowed to be involved by the executive level, and being interested from those below. While participation does not necessarily mean consensus (and indeed, this appears to work only to a relatively small size), it does mean that there is honest and open engagement at all levels within the organization, and an appreciation that this investment in human capital is essential (rather than seeing human resources as a manageable expense). With a truly long-term vision of what the business intends to provide to its clients, the entire group can align themselves and work miracles.

The funny thing is, focus on building a truly sustainable business is not necessarily at odds with any of these more tactical goals, even if it may be perceived that way. It may be more difficult, but it is also much more rewarding, especially if success is measured in terms beyond a paycheck.

-Jim Brosseau of Clarrus Consulting Group

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