Companies accelerating up the growth curve are achieving increased market traction…more customers, higher sales. That’s great news! But many companies discover that their scaling journey is accompanied by operational breakdowns that cause rework, errors and, if the breakdowns involve core product delivery, customer complaints and attrition. When that happens, finger-pointing and frustration inside the company isn’t far behind.
What has happened here?
Well, back in the startup days, the founders were a small team who shared knowledge on all aspects of the business. They not only had an implicit understanding of the operational processes - they helped create them!
A lot has been written on the key qualities of a successful entrepreneur. Quick, name three or four of your own....
Andrew Griffiths at Inc.com compiled a list of 12 characteristics that I like…here are the top 6:
Now that you’re past the startup phase and you’re a growth-stage company rocketing up the growth curve, are these the key qualities that will enable your continued success?
I recently co-hosted a webinar with Michael Eckhardt, Managing Director of Chasm Institute, a firm that helps companies implement best practices in strategic market development. The topic was the twin challenges of growth.
Michael explained that companies face the first challenge of “Crossing the Chasm,” i.e., finding market traction beyond visionaries and early adopters. Those who are successful with this will then encounter the second challenge.
This second challenge is the irony of growth: The very success that companies achieve in gaining market traction also plants the seeds of their own potential failure. The infrastructure – operating systems, organizational foundation – and leadership behavior that worked as a start-up isn’t up to keeping pace with a rapidly growing top line and the ever-growing number of employees in the company.
One of my favorite business quotes is from an old B-school professor of mine: “Strategy is the art of foreseeing the inevitable and hastening its occurrence.” It’s a paraphrase of a quote on the art of statesmanship by the legendary French diplomat Charles-Maurice de Talleyrand.
Strategy is sexy stuff. Deep thinking, insightful analytics and creativity required.
When I interviewed MBAs looking to join my former consulting firm, the majority said that what they really wanted to do was strategy consulting. What they meant was, they wanted to the front end of strategy: the competitive and market analysis, the customer segmentation, the C-suite and Board discussion of options and the finalization of a bold recommendation.