Off Track: How Many of the Tech 100 Will Survive?

When the Sunday Times Microsoft Tech Track 100 was published in September last year, Lehman Brothers had just collapsed, $85 billion had been spent bailing out AIG, and the UK government was just over a week away from announcing their £400 billion rescue plan for the British banking system.

Against an economic background like this the unspoken question was: which of these companies will still be in the top 100 next time around?

Many of these businesses are growing fast because they have a powerful idea which they have made into a profitable business. To maintain their momentum, especially in a recession, they will need more ideas – about both their core business and also about how they run the rapidly growing organization which has built up around it.

“When companies grow to a certain size,” says Kevin Yates, Managing Director of Mitchell Phoenix, “they can no longer rely on a handful of individuals at the top of the company for all of their innovative thinking. They need to create a culture of innovation and the capability to implement those new ideas throughout the whole business.”

Yates argues this is even more important during a recession. “In difficult times the quality of ideas can make or break a business,” he explains, “after all, ideas and the ability to put them into practice is all that separates companies from their competition. Now is the time to ensure that your business is set up to foster and implement innovative thinking.”

When faced with recession in the early 1990s Microsoft, which now sponsors the Tech Track 100, invested in developing the culture and the people within the organization.

“Mitchell Phoenix did extensive work on individual and team capability and performance development,” comments David Burrows, Managing Director in Government Industry at Microsoft. “There was a good focus on delivering usable value to the business, and a willingness to adjust to accommodate client need.”

“Microsoft understood that it was important to place innovation and the implementation of new ideas at the centre of their culture,” says Yates. “They knew that a high performance environment is only developed consciously and deliberately, and they set out to do just that. In many ways this was one of the foundation stones for their success.”