Client-side marketing researcher shares key differences between working at large corporations vs. agile startups
Editor’s note: Liubov Ruchinskaya is global consumer insights director care at home appliance company Electrolux AG, Zurich.
We live in a world where startups can grow into large enterprises, and big corporate organizations can lose their power. As a researcher, it is interesting to investigate the strengths and weaknesses of the two different worlds, and how it might impact you.
I have had the privilege of working with a variety of organizations. My career began by conducting market research for a famous aviation company in my home country. From there, I worked at many research agencies, big and small, before moving to client-side research. I stayed with Colgate-Palmolive for 13 years, diving into many different geographies. Before moving to tech and my current role with Electrolux, I immersed myself in the world of entrepreneurship with very strong startup community in Lausanne, Switzerland, mainly with public research university EPFL.
Working for an established corporation
Based on my time working at large corporations, I believe there are five things the big corporate world can be proud of.
1. Unlimited network. People are the most valuable assets of any company – and your life – and big organizations can give you unlimited opportunities for collaboration and networking.
2. Meaningful resources. No matter how small your budget is, you can find help by scouting internal talent within the big corporate world.
3. Clear structure and defined processes. Roles and responsibilities are defined, expectations are clear and bonus and compensation packages are predicted in most of the large organizations.
4. Security. Your salary comes every month, plus other benefits. And it is not a secret that big names make a difference in your CV. Both of these give you a sense of security and allow you to make long-term family plans.
5. Possibilities. Big corporations a priori give more possibilities to expand business by tackling white spaces or career opportunities.
As is often done in a talent review, it is important to also review the flip side of strengths that represent areas in need of improvement at large corporations:
1. A big network creates risks of working in silos and lengthy alignment. It’s not a surprise that the same ideas might be discussed within similar communities of people sharing the same expertise and culture.
To assist with this challenge, create a culture of sharing knowledge (I’ve used Stravito as a tool for fostering this). Also look for venues for making faster decisions, for example arrange the teams responsible for short-term innovations. One real-world example of this is Nestle Accelerate.
2. Available resources and predefined guidelines restrain experimentation. Big corporations have the tendency to protect what has worked in the past, creating a repetitive pattern.
Counteract this by bringing in outside perspectives to stimulate creativity and create a platform for generating new ideas. Define ambassadors who will drive agility and a culture of experimentation and allow them to fail and fail fast.
3. Structure and predefined processes restrain speed. You risk overlooking opportunity when you take too long to assess its potential and create a plan to tackle it, following internal structure and processes.
Be sure to regularly check the effectiveness of internal processes and structure vs. their abilities to facilitate the decisions with the speed business requires. Implement a culture of open-source leadership, empowering people to take the decisions independently.
4. Security might slowly kill creativity. With security, there is no urgency to make a difference. When the calendar is filled in with regular meetings and status updates, it can be easy to lose track of individual objectives and contributions. With this security, everyone is sure of next month’s salary and employees may feel too relaxed.
To mitigate this, employers should define emotional and quarterly objectives (e.g., if we reach XX minimum in USD in sales this quarter or year, we will take a team trip to an exciting destination). Management may also consider measuring individual contributions on a weekly basis and provide incremental rewards in addition to regular compensation.
5. Endless possibilities vs. staying focused. Diluting your agenda by considering multiple opportunities might drastically delay the visible progress you can reach by staying focused on fewer things.
To reduce this risk, define the big bets that will help you to make a visible impact in a shorter period of time.
Working for a startup
During my time at startups, I’ve learned five important lessons:
1. Pursue a passion to make a difference. Most of the entrepreneurs I know started businesses with a mission to make a positive impact on the world. I started working with startups when I had ideas and dream projects that did not fit corporate reality and boundaries.
2. Entrepreneurial culture unlocks your potential. Working in a startup is like running a race that has no limits – it pushes you hard to the next level of your own possibilities by unlocking creativity and experimentation. It cultivates your development in months not years.
3. Fosters a sense of ownership and impact. Your contributions directly impact the success of the business and therefore are essential and valued. It can be incredibly rewarding if you choose to do work that you love and feel passionate about.
4. Can offer a flexible work environment. Startups often offer more flexibility than big corporate organizations as the work environment is mainly focused on achieving results with low focus on protocols and processes. It can also offer the opportunity to be your own boss and have greater control over your work and schedule. This autonomy is a key motivator for many entrepreneurs I know.
5. Provides the potential for financial reward. As startups grow, their valuation can increase significantly, leading to the potential for significant financial rewards.
Working at a startup has its downsides as well:
1. Behind one successful business is a million failures. While passion can be a driving force behind starting a business, it's important to ensure that there is a market demand behind the dream product or service.
Before you get started, conduct market research and create a solid business plan to help ensure the sustainability of your business.
2. Unlimited growth comes at the cost of structure and resources. Startups may have limited resources, and the lack of clear processes and guidelines can lead to confusion and disorganization that might limit productivity or lead to “walking in circles.”
Counter this by defining clear roles and responsibilities, prioritizing your time and holding yourself accountable to ensure that you are making progress.
3. Ownership and impact signify more responsibility and stress. Long hours and a high-pressure work environment often characterize startups, as teams work relentlessly to achieve ambitious goals at any cost – including extended working hours, stress and burnout.
To help prevent this, set clear boundaries between work and personal life, schedule regular breaks and time off. Seek out partnerships and collaborations with like-minded businesses and organizations to share costs.
4. Flexible work environments might be chaotic and stressful. Startups often require employees to be multi-skilled and flexible, and employees may need to work on a range of tasks outside of their core competencies.
To limit chaos, stay curious about the unknown, and cultivate a culture of constant learning. Consider delegating tasks or outsourcing certain responsibilities to help manage your workload and reduce stress.
5. Big financial wins can come with no financial security. Startups are often vulnerable to market fluctuations and may need to pivot their business strategy, leading to layoffs or restructuring. Employees may also face the risk of not receiving a salary if the company runs out of funds.
Before you join a startup, research it as well as the industry to understand the potential for financial success. And if you’re an entrepreneur, explore funding options such as loans or grants to help get your business off the ground.
Understanding the pros and cons of corporate vs. startup
Both big corporations and agile startups have unique advantages and limitations. It is important to consider your own goals, values and priorities when choosing which type of organization to work for. By understanding these differences, you can make an informed decision and set yourself up for success.