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Startup Pitfall #1: Top-Heaviness


Pitfall Series ImageOn some level it seems to make sense, when building your startup staff, to want your “generals” in place before you start drafting your soldiers. That way plans can be made, hierarchies established, and processes put in place. But, it is precisely because these seem like perfectly responsible and sensible things that so many software start-ups spend so much time and money before they ever ship a product. Ostensibly, the goal of hiring the project managers, business analysts, data architects, and the like is to lay the groundwork and improve the efficiency of the team. The problem is, the efficiency these companies are seeking is squandered in the weeks and often months that it takes for these roles to actually get going at full-steam.

When organizations get top-heavy and the management and analyst ranks swell to outnumber the designers and developers there is cause for concern. The startup would be much better served hiring more developers and designers and let them build software inefficiently for a while. Then they can figure out their work patterns and identify where improvements to the process can be made. I would take 6 months of inefficient software creation over an equal time spent in visioning meetings, “process engineering”, and gantt chart plotting. How about you?

This entry was posted by Ben Edwards on Tuesday, September 25th, 2007 at 2:50 pm and is filed under Agile Processes, Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Further Discussion (One Response so far. Add yours)

  1. Hamlet D'Arcy said...
    This reminds me of Putnam and Hussman’s paper at Agile 2005 called The Origin of Value (which is next to impossible to find on the Internet, what gives?). Goes hand in hand with a lot of the Lean Development ideas. On a 12 month project, you’ll often create more value from getting 10% return on investment starting from month one and stretching the schedule to 16 months than 100% return on investment starting at month 12… which is kinda why my broker keeps trying to get me to save $50 every month instead of sending him a $500 check every January.

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