We’ve been doing a lot of thinking and talking about marketing Arc90′s products and services these days. This has put into focus how we’ve been using our Blog, Lab, Twitter, our web presence (coming soon, a total relaunch!), as well as more ambitious things like hiring a Biz Dev person and dipping our toes into public relations. As a part of this process, there’s been some soul-searching about where we want this business to go and plenty of introspection about what’s gotten us here: things that have worked and things that haven’t.
To date, our consulting business has grown almost entirely by way of word of mouth. This is a logical and expected outcome for a company that’s done no overt marketing, but it is interesting to see that people who have worked with us in the past tend to work with us again and again. Among that group of people, one consistent theme does emerge: someone works with us, leaves their company and brings us along with them to their new gig. Call it the scattering model of growth. This seems pretty logical for the services business, if people see you as effective in terms of product strategy, design and implementation, they’ll likely join another company with similar needs and will seek partners that have proven their worth. Often, selection of a strategic consulting partner is a very personal decision, and thinking back to the good work that people have done for you is a much stronger connection than an ad in a magazine or the like. In this sense, Arc90 is much like a meme, as my coworker Avi pointed out. Through experience working with us, people get acquainted with the idea of Arc – design-driven development, being passionate about the Web, etc – and carry that forward with them.
So that’s the consulting business, where it’s not uncommon for growth to occur based on pleasing some people at a client where some subset of this group will eventually leave and take your firm with them to their new company. But does this scattering model work for growing a product? I’m convinced that this is a huge potential strength for our idea management and innovation application, Kindling, one that will pay dividends for years to come. Employees working at companies using Kindling is a constantly growing list. Some percentage of those employees, we like to think a pretty high one, will really connect with the product and see the value it creates. Some subset of those people will change jobs in the next year or two, and some subset of those people will pull Kindling along with them into their new company. That group may very well turn out to be our best salespeople.
In thinking about the scattering effect on Arc’s business, I was reminded of an article from a recent issue of Wired, where the economic value-creation of turnover was discussed. Paul Boutin wrote:
“Job-hopping, rather than climbing the career ladder within a corporation, facilitates flows of information and know-how between individuals, firms, and industries. When combined with venture capital, it supports unanticipated recombinations of technologies and skill.” In other words, we have Twitter today because a bunch of engineers who were trained at other companies quit their jobs and brought their expertise to Evan Williams’ side project. It’s like biology: In an ecosystem where microbes are promiscuously swapping genes and traits, evolution speeds up.
That’s exactly the right metaphor – individuals leaving their companies and bringing with them the best parts of their previous role, while leaving behind the frictional parts, is much like the selection process of evolution.
Recently a few people have left Arc after a long time of nearly no turnover. While I’m not happy about it – the people that left are very talented and took a bunch of knowledge out the door with them – I’m an optimist, so I’ll view it as a sign that the job market is loosening-up. An improving job market means more scattering, and more scattering is good for us all.
Note: thanks to flickr user Pensiero for the image.
