Xdrive Technologies

AT XDRIVE TECHNOLOGIES, GENERATION X MANAGES EXPLOSIVE GROWTH

A recent TV commercial shows a group of young Internet entrepreneurs huddled around a computer monitor. With the click of a mouse, they launch their long-awaited e-commerce site. As the orders swell from a trickle to a flood, the entrepreneurs realize that their dream has become a reality and that now they have to run a business.

That challenge calls for significant adjustment in the culture of a company with a young staff and an anything-goes ethos. This was the case with Xdrive Technologies, which began operations in July 1999.

Xdrive began as a Web site offering free online data storage to consumers. It grew from seven employees to 120 in a year’s time, with much of its staff joining in the second quarter of 2000. In the last six months, the company has refined its business model by shifting its focus to selling and licensing its proprietary software to major Communications Service Providers.

KEEP AND GROW TALENT
The change in the company’s mission and the rapid growth of its staff created challenges for Xdrive: to maintain the entrepreneurial energy of an Internet start-up while implementing the systems necessary to manage growth in a consistent and productive manner. The company wanted to improve performance but was concerned that the imposition of a more traditional corporate culture might cause valued young talent to flee. Xdrive was also concerned about the effectiveness of its young managers, who had been promoted quickly and lacked experience and training.

Marissa Andrada, Xdrive’s head of human resources, joined in July 2000 after the big staff rampup. A former HR executive at Universal Studios, she was familiar with the Milestones, Inc. Performance Management System from its work there. In September 2000, Andrada brought in Milestones Inc. to work with Xdrive.

“The goal was to present coaching as a new skill set for Xdrive’s managers,” said Madelon Miles, president of Milestones, Inc. “We showed them how to become developmental managers.” A variety of tools and techniques, from styles analysis to one-on-one coaching, were used to explain how to develop goals and communicate them effectively to peers and staff.

PRODUCTIVITY UP AND RISING
Madelon was careful to present the program in a way that resonated with Xdrive’s managers, many in their late 20s and early 30s. “They are smart, aggressive people who ask tough questions and don’t take things at face value,” said Madelon. “We had to be proactive and prove that these skills would be valuable to them.” This meant using timely examples from such respected third parties as The Wall Street Journal to reinforce the training.

“Madelon knows a lot about many things,” says Andrada. “Her encyclopedic knowledge really helped establish her credibility with our staff.”

The reaction to the training was overwhelmingly positive. When Xdrive’s managers realized that they could improve their performance without taking the fun out of the company, they bought in to Milestone’s coaching methods.

The training has had a positive effect on the bottom line as well. “We have experienced increased productivity across the organization,” says Andrada. And because the Milestones Performance Management System is designed to promote continuous development and improvement, its value may be measured in years instead of “Internet time.”