How Tech Companies Can Succeed by Going Private
BlackBerry, BMC and Dell are three of the latest tech companies to go private after a series of stumbles as public companies. To succeed in the latest chapter of their business lives, these firms need to undo the damage done by going public in the first place. It's easier said than done.
Thu, September 26, 2013
Commentary: Stop Demotivating Me!
Finally, folks who acquire a lot of wealth at once often don't know how to handle it and can have issues with gambling, substance abuse or expensive habits that eventually overwhelm them. Affairs, divorces and other bad behavior are all too common. All these things affect job performance, often dramatically.
Going Private Means Undoing Much of What You Did When Public
For BMC, BlackBerry, and Dell to succeed as private companies, these firms will need to undue much of the changes they went through when first going public and ensure that the decisions that crippled them as public companies aren't reinstated once they go public again.
People must be free to collaborate and innovate, the firms have to focus on results instead of blame, and risk must be promoted more than failure's punished. Oh, and the gains an employee or executive gets from the eventual public offering need to be pushed toward retirement and away from the near term. If this isn't done, then the firms are less likely to succeed as private companies — and are almost certain to stagnate.
My grandfather used to say the smart man isn't the man who doesn't make mistakes but the man who doesn't make the same mistakes twice. In this case, it's so very true.
Rob Enderle is president and principal analyst of the Enderle Group. Previously, he was the Senior Research Fellow for Forrester Research and the Giga Information Group. Prior to that he worked for IBM and held positions in Internal Audit, Competitive Analysis, Marketing, Finance and Security. Currently, Enderle writes on emerging technology, security and Linux for a variety of publications and appears on national news TV shows that include CNBC, FOX, Bloomberg and NPR.