Part II: Dot.com Era Gives Work Culture a Makeover

see also:
Part I: Changing the World

There are many lessons learned from my experience developing a tech company in the 90’s and as I reflect back on that time, one of my biggest takeaways is the importance and role that company culture played in the development of the business. 

The tech boom of the 90’s is often compared to the California gold rush of the mid-nineteenth century, and rightly so.  People would do just about anything to get into an Internet startup.  Seasoned executives were leaving their corporate security blanket for the risk-reward of a startup.  Families were packing up and moving across country to the various tech hubs like Northern Virginia.  Young people were dropping out of college thinking that a little web development skill would be their ticket to riches.

While the quest to find and ride the IPO wave was in the minds of many who joined the tech movement, it certainly was not the only motivation.   As much as the promise of potential wealth, young startups offered people the corporate culture change they craved.

You might think I am talking about the infamous stories of offices filled with video games and lounge chairs, fully stocked bars for in-house happy hours, extravagant employee parties and BMWs for the employee of the month.  It was an anything-goes attitude in those days all in the name of retaining and attracting talent. 

The reality is that when the tech bubble burst in 2000, the venture money dried up and the focus returned to business plans that could actually make a profit.  All the lavish perks quickly went away and those that made a change just for such perks found themselves once again unhappy with their jobs.

The kind of cultural change to which I am referring money can’t buy.  It is the kind of culture that comes from the heart of the organization, and is part of the infrastructure and management of the company.

The small, young entrepreneurial focused tech companies of the 90’s broke down all kinds of barriers people were feeling in the big corporate world.  Internet startups moved at such a pace, and were in such need for talent that traditional corporate ladders and politics just did not exist. 

The startup entrepreneurial spirit of the Internet companies allowed talented people to be noticed and make a difference in ways the corporate environment would not allow.   Regardless of sex or age, smart people with good ideas and a strong work ethic could advance quickly and be rewarded for their work.

Being part of a small company also allowed people to be “in the know” and a genuine part of the direction setting.  Communication often revolved around company huddles and everyone had real and meaningful access to the CEO.

The “race” mentality of the startups created a laser beam focus that often served to develop a feeling of camaraderie and teamwork.  There was a genuine feeling of “we are in this together” and even after the bubble burst, people were making big sacrifices for their team.

Small companies have always held these types of cultural advantages, but the difference in the late 90’s was the number of companies that were now in play.  The volume of startups outpaced that of any time in the past, and the availability of such opportunities were an attractive alternative to the big corporate jobs.

So, this is yet another lesson for me to keep top of mind.  I can’t say that I fully understood all of this at the time, but with my experience and a bit of maturity I now have a better understanding of what to do and not do with my next venture.   Company culture is not just something you let happen.  It is not something that you can just talk about.  To develop a strong culture that serves the employees and the customers takes thoughtful planning and hard work.  It starts with the CEO and needs to be part of every employee who takes a seat.  It isn’t something you can mask with perks and parties. 

Next: Part III: Common Sense Gives Way to Irrational Exuberance