New Rules of Success

The New Rules of Success

Forget big biz: Small companies are where the action is in the XXIth century

Has your career stalled or been phased out? You are not alone. Over the last twenty years, one-third of the 1999 graduating class of the Harvard Business School has been laid off or fired at least once. Nonetheless, the class today has a median income. Nonetheless, the class today has a median income of $400,000 and nearly half are presidents, chairmen, or CEOs.

Harvard Business School professor John Kotter has tracked the Harvard grads over the years and documented how they beat the bad times in his new book, The New Rules: How to Succeed in Today's Post Corporate World.  Kotter found that, even for Harvard B-School grads, the traditional corporate career no longer ensures the stability or opportunity for growth that it once did. Many of the Class of '99 success stories played by new rules, many of which they did not learn in Harvard Business School. We asked Kotter to give us the lowdown.

What is the primary lesson of the business class of '99?

The single biggest route to success for most of the century was a narrow aisle up through a big company. The '99 class lies on the cusp of a major shift in capitalism. Today, small companies are better able to adapt to a more dynamic and rapidly changing world. That is why 62 percent of this class have selected careers with small companies.

What made the '99 class so successful?

Interestingly, it is not the Harvard degree or the intellectual capacity per se that characterized successful members of the '99 business class. Instead, what stood out was a drive to increase performance standards and a drive to continually learn.

Smart move! Try to show your skills in any occasion. Photo by Elena.

What changes in the economy have necessitated the new rules for success?

The biggest change is the globalization of markets and the ensuing competition, which creates a more hazardous and volatile business environment.  However, with the accelerating pace of change, there are also more opportunities for individuals to achieve success.

Does a career in big business mean a less fulfilling less well-paid job than a small business or entrepreneurial job?

Yes. Those in the '99 Harvard business class that chose a career in a small business or struck out on their own were more successful. In fact, most successful big companies are starting to resemble small companies in structure and style – the hierarchies are becoming less rigid, and different departments are more autonomous and more flexible than in the past. This means that people in big companies will have to assume more of the decision making and responsibility that their counterparts in small companies have, even though they generally will receive less compensation.

If most of Harvard's best and brightest left big business, who stayed?

Certainly there are a lot of very bright people left in big business. But big businesses are starting to fall apart. Nike, for instance, isn't that big of a company – they outsource much of their work.

Besides money, what is the major source of satisfaction for a career in a small company?

The major source of satisfaction the move toward entrepreneurship and small companies provides is being in charge, being able to shape your own destiny.

What about people who are reluctant to change jobs?

Because of changes in technology and the economy, most people will not have the opportunity to stick with one job, as their parents did. The modern-key worker has to assume more responsibility. The problem is that most of the population has been conditioned to prefer routines. Today many people are scared of change and when they see it they hide behind their desks and their roles.

Who stands most to gain by the new rules?

Whenever you have a stable environment the “in crowd” is favored. With unstable environments or times of great change such as we are experiencing now, the “out crowd” (anyone who has not been part of the status quo) has much greater opportunities than before.

What types of careers offer the most dynamic growth opportunities?

Some industries do offer more opportunities, but it is difficult to draw generalizations. A lot of older industries such as the apparel industry have huge opportunities. Billions of people on earth need apparel and the emerging middle class in India is going to need a lot of clothes from the garment industry.

Are there “must-have” skills in today's workplace?

As we go forward, it is going to be important to learn more about information technologies. But beyond skills, people have to learn to take initiative as well as be able to adapt to change.

What is the most important rule for success in today's post-corporate world?

In any job the question people have to ask is “Am I learning something?” It used to be that people thought in terms of companies, then they thought in terms of careers, but now they have to think in terms of life-long learning.

Beauty counts: A recent study evaluated people on the basis of physical appearance. The results: Those deemed unattractive earn, on average 12 percent less than those deemed beautiful. Obese women tend to earn less, even after they lose weight. However, obesity is not a factor in men's earnings. But the overall effect of perceived attractiveness on earnings is the same for both men and women.