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I’ve seen a flurry of headlines like this one on news sources, blogs and even in forum posts. What I find incredible is that many of the reports expressed an element of surprise. I must admit it that I wasn't surprised at all and viewed the staff cuts as a natural part of the evolution of the Oversee suite of companies.
 Oversee has gone through an incredible transformation over the last 18 months. If you remember back that far they raised approximately $150m in venture funding to grow the business....and grow it they did! Since then Oversee has been on a buying spree to build up a large portfolio of domains, purchased both Snap and Moniker and has gone through a number of organisational restructures.
First, if you consider the fact that many of the acquisitions had overlapping departments (eg. administration) then it’s only natural that the company would seek to save funds via cutting staff and streamlining processes. Secondly, I'd hazard a guess that the investors are very likely bleeding red ink in many of their other investments with the global downturn and are insisting that all investments get cashflow positive as fast as possible.
In order to facilitate this direction Lawrence was moved to the role of chairman and Jeff Kupietsky made the CEO. It’s interesting to note that Jeff was originally brought in as a consultant to help the business grow. Jeff is originally from the tier one strategic management consulting firm McKinsey and Co. so it was only natural for him to move into the CEO’s role. McKinsey hire the best and brightest and it was clear to me when I first had a chat to Jeff when he was a consultant at Oversee that he was really seeking a role that he could really get his teeth stuck into. He's a really smart guy and a person that I go out of my way to spend time with at domain conferences.
In addition to Jeff, there have been many changes at the executive level of Oversee in the last twelve months with the hiring of some key staff to fill out the management team and bring a strong discipline to the bottom line. What strikes me about each of the new team members is their desire to provide value for customers while being very pragmatic and business like……this is often combined with an incredibly sharp mind!
With all of these changes there has been a huge cultural change that Oversee has gone through. The entrepreneurial spirit with all its pluses and minuses is giving way to the corporate discipline that is necessary to take the company to the next level. Some people can move with this transition while others may find it difficult but in the end I believe that the domain industry’s largest player will come through all of these changes a stronger and more vibrant organization.
This is what happens when you bring in a lot of venture funding and no one should be surprised by the steps that Oversee has taken during the last 12 months. Laying off staff is never fun but in order to be a sustainable business in the long-term in this economic environment it’s often a necessary downside to managed growth. The challenge for the management is to be professional while at the same time as expressing a caring attitude for the staff that are let go.
On a personal note I wish Oversee and the staff that have been made reduntant all the best and pray that they can all quickly find even more fulfilling positions in other organisations.....while at the same time not being strangers to us domainers.....
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