|
5. |
Growth
–
the company is broadening production lines, focusing on the main product;
management style transition from informal to formal |
 |
Organization:
Centralized
Management: Hybrid
formal/informal
Technology:
Developed, focused
Funding Stage:
Second |
|
pp. |
Problem
|
Solution
|
Action
|
|
5.1 |
Growth Risk:
-
Your capabilities in maintaining
perspective (reality vs. euphoria), balancing today's and tomorrow's needs,
and coordinating resources are being tested
-
The original route to success
works for some time, but then it stops working so well and hits diminishing
returns. It is nor easy to keep a great new venture to grow at its original
rate for more than 3 to 5 years. If you continue doing the same things that
made you successful during the start-up stage you are almost certain to
fail.
2
Growth Strategies
6Ws of Corporate Growth |
-
Thinking
about your second stage of growth before the first has happened.
Reinventing your business model, experimenting extensively to find
a successful new model
and get to the second stage of growth
-
Besides creating
a viable model, a critical factor in the ultimate success is how well
and fast your company integrates
-
Development of a
flexible and responsive company structure adaptable to changing internal
and external conditions
-
Development of an effective and flexible production systems responsive
to change
-
Building
strategic alliances and business partnerships
|
|
|
5.2 |
Technology & Production Risk:
-
Early success with a single
application or product line does not translate into long-term viability in
the face of well-capitalized, entrenched competitors with strong customer
relationships
-
New technology and products
development draws significant resources from the fast growing business
operations
Systemic
Innovation: 7 Areas
The Jazz of Innovation |
-
Identification
of strategic market intervention areas
-
Development of
the business and technology strategy to achieve this goal
-
Top management
participation
-
Development of strategic technology development partnerships
|
|
|
5.3 |
Marketability & Competing Risk:
Customer
Success 360
Customer Value Creation
Synergistic Selling
|
-
While managing
growing complexity, it essential to remain focused on how the business
provides value to its customers
-
Fighting fires
-
Research into
the market and its trends
-
Reinventing
market
development strategy
|
Creating Customer Value: 9 Questions To Answer
|
|
5.4 |
Financial Risk:
-
High leverage
-
Short-term financing
-
Inventory shortages or imbalances
-
Poor financial & tax strategy for
generating cash
-
Excessive increases in overhead
and personnel
|
|
|
|
5.5 |
Team & Management Risk:
-
Start-up spirit starts to fade
-
Organizational boundaries are mounting;
employee gradually lose perspective on each other's jobs
-
People lose the big picture: they can no longer
see how the various tasks, activities and functions fit together to achieve
the organization's overall purpose
-
Employees start to identify more with their own
unit or work group than with the company as a whole
-
As boundaries become more rigid, the company
loses its elasticity - it's ability to change in response to (or
anticipation of) changes in the external environment
-
No
strategic and contingency
planning
-
Shifting priorities in response to
opportunities
-
Resisting development of
structure, processes and controls
-
Hiring people who are no smarter
than you are
-
Key people leaving
-
Others don't share your urgency
-
Poor decision support systems
-
Overridden and inadequate internal
systems, non-responsive to customers & employees
-
Conflict between formal and
informal
-
Emergence of the "Peter
Principle"
-
Difficult decisions about roles,
authority & responsibility
|
-
Keeping pace
with an increasingly complex business environment requires proper
delegation, better communication, and cross-pollination of perspectives
from outside advisers and peers
-
Managing as a
team
-
Addressing the
problem of "good people" who can't keep up
-
Establishment of
management systems enabling better control, transparency, and customer
relationships
-
Development of
employee empowerment mechanisms
-
Development of
formal professional management structures
|
-
Create the mindset of growth
and establish the relentless growth
attitude in your organization
-
Learn to do less and manage more; practice
the art of effective
leadership,
management, and
coaching
-
Practice
effective self-management
-
Practice
results-based leadership
-
Start with yourself, know your own values, strengths, weaknesses and
use them effectively
-
To be a successful manager,
learn
how to innovate
-
Build an
innovation-friendly
organization
-
If you cannot afford top
management,
build your management team from within and develop their
management
skills
-
Change from reactive to
proactive style
-
Do the
feedback analysis as a matter of course to build on your strengths
-
Gain really effective control a
comprehensive business audit
-
Develop plans for the future
-
Don't over-respond to
opportunities to avoid fragmentation and burn-out (see
80/20 Principle)
-
Micro management de-motivates
people - concentrate on the activities that bring the most value to the
organization and
delegate other responsibilities and tasks
-
Make sure you
communicate clearly and often with colleagues, superiors, and
subordinates; talk less and
listen more and actively to associates, advisors, customers,
suppliers, and vendors;
cross-pollinate
solutions and ideas with peers and advisers outside the business
-
Don't assume that everyone in
the company thinks like you do; that you have all the answers; that
things won't get done without you; and that your direct reports will
automatically function as a team.
Lead!
-
Play the role of the
team builder,
coach,
strategic planner and
communicator; communicate critical and actionable information
-
Require top managers to
operate as a "team"
-
Help team manage the plan by
group discussion of progress;
measuring results with key metrics; communicating progress and
results; and adjusting plans to market shifts
-
Manage organizational misfits,
malcontents, and non-performers
|
