Latest / The Internal Move Podcast with Fexingo: Lateral Roles, Internal Transfers, and Staying at Your Company / The Power of Shadow Equity in Lateral Moves
Transcript
- Lucas: There is a specific kind of risk in staying put that most people ignore because it doesn't show up on their performance review. We talk a lot about the tax of leaving, but we rarely discuss the opportunity cost of remaining static in a market that is shifting beneath your feet right now. Luna: Right, because the external world is already unpredictable enough with inflation data and interest rate decisions, so why would you voluntarily limit your own adaptability by staying in one silo? Lucas: Exactly. And I want to introduce a concept called shadow equity. It is not stock options or vesting schedules. It is the accumulated trust, process knowledge, and cross functional networks you build when you move laterally within an organization. Think of it as a private equity stake in your own career resilience. Luna: So you are essentially saying that every time you jump departments, you are buying insurance against obsolescence in your current role. Lucas: Precisely. Let me give you a concrete example from a mid sized technology firm here in the Bay Area. A senior analyst named Elena moved from marketing into product management last year. On paper, it looked like a flat move. Same title, same salary band. Luna: But in reality, she was positioning herself to understand the entire customer journey rather than just the acquisition funnel. Lucas: That is exactly what happened. When the company had to pivot its core offering due to regulatory changes in September, Elena was already embedded in the product team. She knew the technical constraints and the customer pain points simultaneously. Her peers who stayed in pure marketing roles were suddenly redundant. Luna: So her lateral move wasn't a step sideways; it was a step deeper into the value chain, making her indispensable rather than replaceable. Lucas: And that is the key distinction. Most people think promotions are the only way to increase value. But in a downturn or a restructuring event, breadth often beats depth. You become the translator between teams, which is a rare and high leverage skill. Luna: It sounds like building a personal monopoly on information flow within your company. Lucas: Yes, and it compounds over time. Every new department you touch adds another layer of context. If you stay in one spot for ten years, your value is tied to the health of that single function. If you have moved three times, your value is tied to the health of the entire enterprise. Luna: Which means your exit options are wider, but your retention power inside the company is also significantly higher. Lucas: Correct. Now, the tricky part is that managers often resist these moves because they lose their immediate talent. So you have to navigate the politics carefully. You cannot just announce you are leaving; you have to frame it as solving a bigger problem for the business. Luna: So you pitch the lateral move as a strategic experiment rather than a personal desire for change. Lucas: Exactly. You say something like, I want to help bridge the gap between our sales forecasts and our inventory planning. That makes it about organizational efficiency, not your career itch. It lowers the defensive posture of your current boss. Luna: And if your current boss supports it, you actually strengthen that relationship by showing them you are thinking strategically about the whole company. Lucas: That is a great point. It transforms you from a resource consumer into a strategic asset. But there is a danger zone here. Some people treat internal mobility like job hopping, jumping every eighteen months without building any real roots. Luna: Yeah, you can dilute your shadow equity if you never stick around long enough to see projects through to completion. Lucas: Right. You need to stay in a role long enough to deliver at least one major win before you move again. Otherwise, you are just collecting introductions without any proof of execution. The market values results, not just network size. Luna: So the rule of thumb is two years per role minimum to build credibility and then move? Lucas: Two years is a good baseline. It gives you time to learn the unwritten rules of that department and to establish a reputation for reliability. Then, when you leave, you leave with goodwill and a track record. Luna: This feels like a much smarter play than waiting for a promotion cycle that might get frozen due to budget cuts. Lucas: Absolutely. Especially looking at the corporate landscape today, with many firms consolidating teams and freezing headcount, vertical movement is slowing down. Lateral movement is becoming the primary engine for career advancement. Luna: It forces us to stop asking where the next rung on the ladder is and start asking where the next interesting problem is. Lucas: That is a perfect way to put it. You are no longer climbing a ladder; you are navigating a maze. And the people who thrive are the ones who map the connections between corridors. Luna: I wonder if this approach also helps with negotiating salaries, since you bring a broader skill set to the table. Lucas: It does. When you come back for a raise or a new role, you can point to your cross functional impact. You aren't just a marketer; you are a marketer who understands product development costs. That commands a premium. Luna: It turns your resume into a narrative of versatility rather than a list of job titles. Lucas: Exactly. And that narrative is incredibly resilient. Even if your industry takes a hit, your ability to operate across functions makes you portable to adjacent sectors. Luna: So the takeaway is to actively seek out those lateral opportunities, even if they don't look like promotions on the surface. Lucas: Yes. Look for roles that force you to learn new languages, whether that is code, financial modeling, or supply chain logistics. Those are the skills that compound. Luna: And remember to document your wins in each new role so you can tell the story of your shadow equity when it matters. Lucas: Well said. Before we wrap up, if this conversation helped you rethink your career trajectory, I would appreciate your support. Visit buy me a coffee dot com slash fexingo — that's F. E. X. I. N. G. O. Luna: Your contributions keep these deep dives ad free and allow us to cover complex topics like this without rushing. Lucas: Thank you for listening. What is one skill outside your current wheelhouse that you could start learning this quarter?