Scaling and Sustaining

If you haven’t thought deeply about scaling your company, you’re not alone. Out of more than 5.6 million companies in America with one or more employees on the payroll, only 1.7% scale to more than 100 employees, and .3% to 500 plus. Far fewer manage to sustain their size for long. Many cycle up and down the growth curve until the company finally dies.

This can make a small company feel fragile and for good reason. This census bureau statistic tells us that learning how to scale and sustain is probably on the top of each owner’s mind. But, how do you learn to do this?

We can start by facing the facts. Statistics show that some owners know how to scale, but most don’t. So what do some owners know that others don’t?

Cohesiveness is the first step in scaling.

According to Wikipedia, cohesion is when a group has a tendency to be in unity while working toward a goal or to satisfy the emotional needs of its members. A senior team can best achieve cohesion when they share a broadly understood future that meets the emotional needs of each member. When cohesion is absent, coercion is present. An ancient Proverb said this well, “Without a vision the people perish.”

A business unit leader recently shared his 360 review with his company peers. He scored a very low 65 on vision and strategy, which caught everyone’s interest. These are the evaluation question on his review:

  • Can clearly explain the reason your company is in business
  • Has the ability to anticipate the future needs of the company
  • Has the ability to set a clear course of direction
  • Can effectively translate vision into a realistic, achievable strategy
  • Has demonstrated a willingness to take reasonable risks

Our follow-up conversation revealed that the owners and senior team did not hold a common picture of the future. Without this, it would be nearly impossible for a business unit leader to improve his score substantially. Until the owners and senior team achieve cohesiveness, this business unit remains at risk. They also risk losing top performers who won’t hang around if they don’t know where you are going.

What would your score be for vision and strategy? Any score below 90 means you’re missing a great opportunity. Would you like to know? I’d love to know your thoughts. Jim@peer-place.com

Jim

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