01-27-2025
In the dynamic landscape of business, leaders must adapt their toolsets to thrive in different organizational environments. Dustin Smith, a seasoned executive with experience in both mega corporations and mid-size companies, offers valuable insights into the leadership skills required for success in mid-size organizations and why starting a career at a larger company can be beneficial.
Smith, a Daniels School alum and Business Fellow, defines mega corporations through the lens of Ford Motor Company, a 120-year-old automotive giant, while mid-size companies are exemplified by Wabash, a 25-year-old enterprise when he joined. This context is crucial for understanding the distinct challenges and opportunities each environment presents.
One of the key differences Smith highlights is the depth versus breadth of experience. In mega corporations, professionals often go "an inch wide and a mile deep," specializing intensely in a specific area. For instance, as a plant controller at Ford, Smith focused exclusively on managing labor and overhead costs for a $2 billion revenue-generating car plant. He spent his entire time on a single section of the profit and loss statement, never generating a full financial report.
In contrast, mid-size companies require leaders to be "a mile wide and an inch deep." This broader perspective allows for more diverse experiences and responsibilities. At Wabash, Smith found himself involved in various aspects of the business, from finance to acquisitions and even negotiations with local government officials for economic incentives.
This shift in perspective is a crucial tool for leaders in mid-size organizations. The ability to understand and contribute to multiple areas of a business is essential. Smith's experience leading the acquisition of a manufacturing facility in Minnesota for Wabash's Prisma (later EcoNex) composite technology project exemplifies this need for versatility.
Another vital tool is the capacity to create and improve systems. In mega corporations, the challenge is often to find ways to enhance existing, well-established systems. For mid-size companies, leaders may need to build systems from scratch. Smith emphasizes that this ability to create efficient processes and structures is a significant opportunity for professionals to stand out and drive organizational growth.
Risk-taking and innovation are also more accessible in mid-size companies. Smith notes that Wabash's leadership encourages calculated risks, understanding that not every initiative will succeed immediately. This environment allows leaders to experiment and learn from failures, a crucial skill in today's rapidly changing business landscape.
Interestingly, Smith suggests that starting a career at a mega corporation can be beneficial for developing these leadership tools. Large companies often provide structured training and expose professionals to best practices in their respective fields. However, he cautions against staying too long in such environments, noting that after about 10 years, individuals may become too institutionalized and struggle to adapt to the flexibility required in smaller organizations.
The ability to collaborate across functions is another essential tool. In mid-size companies, leaders often work with diverse teams and must be able to communicate effectively with various stakeholders. This skill is particularly valuable when driving innovation or implementing new strategies.
Ultimately, Smith's experiences underscore the importance of adaptability, system-thinking, and cross-functional expertise for leaders in mid-size organizations. While mega corporations can provide a solid foundation of skills and knowledge, the true test of leadership often comes in navigating the more fluid and multifaceted environment of mid-size companies. By cultivating these tools and maintaining a growth mindset, leaders can position themselves for success in the dynamic world of mid-size enterprises.