Five principles for flexibility

Every day, we wake to news alerts about crises in unstable economies, companies merging or being acquired, and others launching new products or services. It can seem as if market conditions and competitive threats are changing by the second.

I have experienced this from two different perspectives: one as an employee at a large organisation and the other as co-founder of multiple start-ups. Working at a large corporation helped me learn what it takes to stay afloat in unpredictable times. But it’s my experience with start-ups that taught me to construct a nimble organisation that thrives on change, rather than resists it.

As this type of business becomes more important, I’ve come up with five principles for creating a nimble company.

● Create a flexible workforce that is in it for the long run

For a smaller organisation to compete with major industry players, it has to accomplish comparably complex tasks with far fewer employees. Consequently, those working at a smaller business must be given more responsibility than employees working for a giant corporation and this can increase their investment in the company. Look at your employee base as your most valuable asset. Hire a workforce that is prepared to wear many different hats and pitch in wherever extra help is needed.

● Practice incremental and iterative development Employees’ tasks and objectives are often not well-defined in innovative start-ups, which typically operate in uncharted waters where issues constantly arise. But, without a clear map to navigate around these issues, nimble businesses must try various solutions, some of which will fail. Learn to create an idea, build upon it and test it. If it doesn’t work, be ready to go back to the drawing board and start from scratch.

● Document progress

Real-time communication plays a crucial role at a start-up, but the correct processes and documentation must also be in place. This ensures that knowledge is transferable and execution is less dependent on “star” engineers. Track all the stages involved in idea creation and development of a product, so employees stay in the loop and assist with projects as necessary.

● Keep the risk-reward trade-off tilted in favour of start-up employees

Jobs at a start-up are always in jeopardy, even if an employee is providing quality work and adequate effort. However, if successful, the pay-off can be substantial. Employees are rewarded with valuable knowledge, experience and wealth if they are part of a nimble business that succeeds. Keep sight of the possibilities and don’t worry about minor setbacks.

● Forget measurable goals and benchmarks

For “star” start-ups, success is not necessarily tied to revenue, bottom line, user metrics or other measurable benchmarks. Rather, it is about making an impact and bringing about change. In the beginning, focus on the end goal and the big picture. Large companies may have an edge in terms of market share and resources – but there are numerous examples of small, nimble organisations with good timing, iteration, luck and intelligence shifting the paradigm, and rising against the competition. Think Twitter and LinkedIn. These are companies that have built themselves equipped to react to change quickly, effectively and efficiently.

Alex Mehr is co-founder and co-chief executive of Zoosk, a social network for people in relationships and those interested in dating