“Strategic pivot” has been a fashionable buzzword for several years. Now wildly over-used, it can be misleading and cause poor decision-making by investors, entrepreneurs, and management teams. So I thought it was high time to try to define what a successful pivot looks like versus a wasteful flail.
Big data and IoT businesses continue to attract enormous amounts of venture and PE funding but very few of them have yet to demonstrate the growth expected of them. Splunk is an exception. The company’s 2016 revenues will approach $1bn. and its current valuation is $8bn. Perhaps more significantly, the stock has experienced greater growth and stability than most recently public tech companies. This article addresses some of the management “secrets” behind the company’s success, in the words of Godfrey Sullivan, former CEO for eight years until his retirement in November 2015.