Young Tech Leaders Up to Speed in Fast-Paced World
The new generation of technology leaders are worth more in stock options than the latest lottery winner, and hold titles like CEO and chief technology officer. And as everyone knows, they’re often in their 20s and early 30s.
But just because they’re young doesn’t mean they’re not grown-up enough to handle the rigors of running a company, experts say. In some ways, their youth is an asset in managing in a fast-paced, highly competitive industry.
“Being young does not automatically preclude you from being a good leader,” says Warren Bennis, management professor at the USC Marshall School of Business.
In fact, in the case of technology companies, where the pace is often hectic and it’s almost impossible to predict the future, youth can be an advantage.
“The MTBS or ‘mean time between surprises’ is pretty short,” Bennis says. “Given the hyperturbulence in the industry, younger people are often more able to adapt to the changes. Sometimes I wonder if there isn’t actually a reverse discrimination against people over 40.”
Young executives of technology companies are also different from your traditional big-company leaders in other ways. They wear jeans instead of suits, they don’t hesitate to say what’s on their minds and are often irreverent. But such behavior is tolerated, even accepted, because the business environment is so different.
“The whole industry is still in the process of being defined,” says Rafael Resendes, president of Applied Finance Group. “There are no preconceived notions here about what’s right and what’s going to work.”
“We’re living at a time when the past may not be a very good guideline for the future,” says Bennis. “Life experiences from one generation are not necessarily relevant to the next.”
Still, many companies, though founded by twentysomethings, are now being run by CEOs with traditional finance and business experience. The founders of the Internet search engine Excite, for instance, hold titles of chief technology officer and senior vice president, but have handed over the CEO role to George Bell, a 42-year-old former senior vice president of Times Mirror Magazines.
“Entrepreneurial spirit is good for start-ups, but as companies mature they bring in experienced managers,” says Resendes. The older management lends credibility to the business.
Another example of this can be seen in Netscape. Web browser creator Marc Andreessen co-founded the company in 1994 at the age of 22, but has yielded the role of chief executive to Jim Barksdale, the 55-year-old former CEO of AT&T; Wireless Services.
Other tech start-ups have gone in a different direction, with young CEOs bringing in others to work under them.
“They recruit meticulously,” says Resendes. Michael Dell, CEO of Dell Computer, Jeff Bezos, CEO of Amazon.com and Halsey Minor, president of CNet, have all retained the head positions in their companies while hiring from the gray-suited worlds of finance, consulting and older computer firms.
But whether or not these firms are run by the young founders themselves, investors don’t seem to be fazed by the age of these newcomers, as demonstrated by the meteoric rise in stock prices, “buy” ratings given by financial analysts and the number of mutual funds that have invested in them.
“I’m not bothered by young management, but you do have to wonder what’s going to happen at the first sign of trouble,” Resendes says. “A lot of young people have only seen good times in a robust, forgiving market for technology start-ups.
“By contrast, when General Electric grooms a manager, by the time they get to the top spots they’ve worked in many different positions all over the country.”
Bennis agrees. “There is something to be said for emotional intelligence and experience acquired over time.
“There’s also some built-in arrogance, based on the sheer rapid success of the company, but that’s to be expected,” Bennis says. “In the long run, the people with the ideas that work and who can adapt to the changing business environment are the ones who are going to make it.”
In the short term, as the stock market continues to surge, expect to see more young paper millionaires. And don’t be surprised if you find yourself working for one.
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Young Tech Execs
Marc Andreessen, Executive Vice President for Products, Netscape, 27
Halsey Minor, President and CEO, CNet, 34
Jerry Yang, Chief Yahoo and Director, Yahoo, 30
Joseph Kraus, Senior Vice President and Director, Excite, 27
Sky Dayton, Chairman and CEO, Earthlink, 27
Jeff Bezos, President and CEO, Amazon.com, 35
Michael Dell, CEO, Dell Computer, 34
Kim Polese, CEO, Marimba, 35
Pierre Omidyar, Chairman, EBay, 31
Jason Olim, CEO, CDNow, 29Source: SEC filings.
