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The DeVenney Code
Enjoy the unraveling of the business world's deepest darkest secrets from the comfort of your desk with “The DeVenney Code”. Michael’s opinions on both major and less covered business topics can be enlightening, refreshing, and humorous. Gain some perspective on topics that you may have never considered before, and challenge yourself to consistently “think outside the box”.
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| If Bill Gates Had Been Canadian |
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Is it a Canadian business principle to sell out rather than continue to grow? I'll be honest right up front that this is purely an opinion piece. But it seems over the last few years that I see more and more businesses being sold out rather than continuing to innovate and grow. In the sale, we all seem to lose a little. So much research indicates that declining productivity, reduced global competitiveness, and poor investment in innovation continue to plague Canada. I think a significant reason for our situation is that Canadian business has almost become afraid of owning our future growth. After a certain size has been hit, it seems to be far easier to sell out to a larger company that can "help us grow to our potential". What can't we as Canadian businesspeople take our companies to their potential? Why do we need to sell out? Has it been accepted to such an extent that it is simply a step businesses go through now when they reach a certain size or level of success? I am not opposed to foreign investment in our companies (we need it - I know) but not that we hand over full ownership in exchange for the money or that we give up on working to be our own great company. Studies have also shown that in the greatest portion of mergers and acquisitions, there is actually very little value (if any) added to the equation. Due to "streamlining" after the transaction, most corporate purchasers divest of workers (in the name of redundancy - always a favorite word), property, and other assets for efficiencies. Was there no other way to find avenues to keep those people employed productively? Could we not have been innovative to find ways for workers to apply their skills in other areas rather than be terminated? I am not a "feeler" at all but it just seems we are selling out rather than taking ownership and letting our people down. No wonder we have sagging engagement levels. Bo Burlingham wrote a book, Small Giants, a few years ago that expanded on the ability of entrepreneurial companies to become greater and richer without necessarily becoming bigger or selling out. "Bo Burlingham has a reassuring message: Relax. Bigger isn’t necessarily better. The wonderful stories in Small Giants show you how to prosper by retaining the vision of excellence that got you into business in the first place." (Rosabeth Moss Kanter, Harvard Business School professor and author of Confidence ). I think it needs to be required reading for Canadian entrepreneurs. Yet, we applaud the stories of entrepreneurs who have built businesses that are then sold to a larger company - the news boasts that they made it. Did they really make it? I feel sad that so many Canadian entrepreneurs choose to sell out rather than continue to innovative and grow and "retain the vision of excellence". When a sale or merger makes the two companies better together than they were separately and provide all of their people the opportunity to grow with them, I can buy the story. Too many times, though, it seems more about the money for the owners. My feeling is that if Bill Gates had have been born in Canada, he would have sold out long before Microsoft became Microsoft. It would have been easier than investing in the innovation needed for growth and reaching the potential. Maybe I am wrong and just becoming disillusioned - and I am happy to hear other theories. I truly want Nova Scotia and Canada to be strong and competitive in the world and provide investment and opportunities for workers to contribute and innovate so we all reach our potential. We need to be leaders in our businesses to provide a vision for competitive growth, innovation, and meaningful work. I just don't see selling the business out as the way to get there. Just my thinking ...
Comments (2)
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Thanks, Don ... one of my worries, though, is exactly what is the Canadian dream - are we too cautious to invest in growing our own businesses to their potential and selling out too early to the detriment of our workers, etc. The US has a much more entrepreneurial perspective - which can get them into problems - but they do go for it. Maybe (being a Canadian) we can find a better balance. Appreciate your comments.