Ed Oates Oracle Speaker Event
In the SVCE speaker session with Ed Oates, co-founder of Oracle Corp. and SJSU alumnus, he discussed several key aspects of entrepreneurship and management. He spoke about software contract programming during his time at Aumex and Ampex, where they would hire programmers to build software solutions. Oracle’s journey began with a modest $2,000 investment but quickly led to a $400,000 contract, showcasing the power of contract programmers. Oates emphasized that \”cash flow is king,\” illustrating how critical cash management is to a company’s survival, especially in its early days. He mentioned his work with Audible and how he implemented a philosophy of meritocracy, ensuring that the best people in part of the company stay and get properly compensated.
At IBM, Oates described how they hired and diversified staff based on what each person was good at. He also highlighted how Larry Ellison, Oracle’s co-founder, would deal with underperformance by acknowledging when employees were not doing well, opting to get rid of them—citing HP as an example where managers relocated problems to elsewhere rather than solving them. Oracle was able to secure $50,000 before their software even existed, a testament to their ability to network and build investor confidence. Oates also mentioned the 150,000 patents in phone technology that inspired later innovation. Finally, he outlined the basic components of software, stressing the importance of project management, intermediate steps, and learning to adapt to new environments like AWS. His insights emphasized the importance of networking and skills in building a successful company.
The insights shared by Ed Oates directly relate to key principles of organizational behavior and management. His emphasis on meritocracy connects to performance management, where organizations must reward high performers and ensure the best people stay within the company, aligning compensation with contributions. Oates’ mention of diversifying staff based on their unique skills speaks to the importance of role alignment and leveraging individual strengths, which is a core principle in managing teams effectively. The approach taken by Larry in addressing underperformance, by removing employees who aren’t meeting standards, reflects the need for accountability in management. Additionally, Oates’ focus on cash flow, project management, and intermediate steps highlights the organizational need for careful planning, financial oversight, and structured processes to ensure long-term success. These elements underscore how leadership can shape both individual and team behaviors, driving an organization toward its goals through effective management.