Communications of the ACM
Jumping the Corporate Ship
Credit: RealTown
A growing number of middle managers are leaving large corporations to join new start-ups, as the technology boom continues to gain momentum. As more start-ups receive venture capital financing and, in some cases, generate enormous wealth for employees when the companies are sold off or go public, corporate middle managers are reassessing career plans. In the last year, executives from major financial services, entertainment and law firms have all taken senior-level roles in start-ups. Start-ups have a need for more experienced management, people that have built more of an operational superstructure from bigger companies.
This shift also reflects a profound reappraisal of risk in today's labor market, where more established industries are being disrupted by technology shifts and upstart companies. Some middle managers now see start-ups as increasingly attractive because they can exert a more direct impact on a company's operations. For younger workers, moving to a startup can be an opportunity to do something big. Young consultants, for example, can become business development directors or have other important responsibilities for growing a company. Based on anecdotal evidence, the number of start-ups that are seeking corporate middle managers to help build out business teams has doubled since the fall of 2010.
Still, some experts say managers should proceed with caution. During the last tech boom, some top executives left corporations at the height of the bubble only to see the start-up they joined sink soon after coming onboard. Midlevel managers should stay with a bigger company where they can gain experience and move up the ranks. If middle managers are hired too soon in a start-up's development, their talents could be wasted. Experience at a large company can be a great springboard and training ground, especially if it involves experience with important areas of future technology development, like mobile applications. It can also be helpful if it gives greater direct contact with customers.
From The Wall Street Journal
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