OMGPOP and Capitalizm

I love this story:

OMGPOP was not getting traction on Facebook, but it still had a bunch of flash developers.

Porter could have moved them around to mobile or other projects but money was running tight. To extend the company’s runway, he had to let them go.

This move bought OMGPOP another month or two of runway. It was purely a financial decision and a really tough one. The company tried to find jobs for the people who were fired.

Once Draw Something took off and it looked like we might do a deal, CEO Dan Porter hired the fired workers back ASAP.

He was literally negotiating the deal and jamming the re-hires back into payroll to make sure they were covered with hours remaining in the close. Their options kept vesting and they benefitted from the sale.

Porter didn’t have to do it. It was just the mensch thing to do.

There was one guy who used to work for OMGPOP who was facing a deadline on whether or not to exercises his options. He couldn’t decide, and Porter didn’t want him to lose out, so he hired him as a contractor to extend his vesting as well. He made money too.

Every single employee got something from the deal, even new employees who hadn’t reached their cliff. Porter made sure it happened.

via The Incredible Story Of How Laid-Off OMGPOP Workers Got Hired Back Just In Time To Cash-In On The Big Sale – Business Insider.

That’s the way capitalism is supposed to work: we watch out for each other. And if we did more of it, we wouldn’t need the government sticking its nose into our business.

But that is the choice: practice a higher form of capitalism, or the government will impose its version on you.

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Author: David Wolf

An adviser to corporations and organizations on strategy, communications, and public affairs, David Wolf has been working and living in Beijing since 1995, and now divides his time between China and California. He also serves as a policy and industry analyst focused on innovative and creative industries, a futurist, and an amateur historian.

3 thoughts on “OMGPOP and Capitalizm”

  1. Perhaps, David, but how many are protected by a mensch when management fires 20,000? Who helps them?

    1. A company that is firing 20,000 people has no mensches. It has managers. Respect to Peter Drucker et al, the development of “management” as a profession, divorced by calculation from any but the narrowest, most pecuniary definitions of “good” and “bad” in enterprise, has been an disaster for both business and labor. It has permitted the unwarranted stratification of the enterprise.

      Part of the response to an enterprise run by “management” is organized labor as envisioned by FDR when he signed the National Labor Relations Act of 1935. I put that in italics because the problem with organized labor is that while it was originally designed to help strike a balance of power in the workplace, in too many workplaces the balance shifted entirely to labor. Where that happens, you have abuses every bit as heinous as what shortsighted managers can do.

      But organized labor is not always the answer: it would have done little for the people at Enron. The answer is good laws and evenhanded enforcement. While I hate regulations like I hate taxes, I recognize the need for both in a functioning society.

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