jump to navigation

Rapid Growth Syndrome February 12, 2016

Posted by Ivor's Window to the IT and CRM World in Change Management, Management, Microsoft CRM, Microsoft Dynamics CRM, Training.
Tags: , ,
trackback

Who moved my Cheese

Many of us have experienced this, working for a small innovative business where the sum of all the energy is transformed into great products or exceptional services. This requires the organisation to grow, hiring even more innovative and creative people and the cycle continues.

The business is growing, and then suddenly some of the processes seem to no longer work, and one solution is to throw people and resources at it, employ a HR person to handle all the interviews, Employ project managers to manage all the projects implement a CRM system etc. and before you know it the business is transforming from the small clique of initial staff members into a company structured organisation.

Very often this is happening in an industry where there are a number of other companies in the same market all facing the same issues and all growing simultaneously, (like the dotcom boom) so why do some succeed and other fail to gain the traction needed to progress?

One has to look at how well they managed the “Rapid Growth Syndrome” and there are a number of key aspects to evaluate.

Among other things this syndrome affects People, Process and Technology.

People

Are the management hires suitable, qualified and flexible enough to work within a rapidly changing environment?

One needs to ask the following hard questions if you are promoting one or some of the original staff members into these newly created management positions. Are they capable to hold these positions? Will this stifle their creativity? And more importantly do they have the experience and temperament to manage staff? Sometimes the really creative people just don’t want to do those roles, however as the business is growing they are compelled to take on these responsibilities rather than have an outsider come in and suddenly become their manager.

Process

Suddenly with a large influx of staff, some at a junior level, will come the implementation of rules, where in the early days the core group might go out for long lunches or take some time out to be very creative now this process and activity is frowned upon and sometimes actively discouraged as it is setting an incorrect precedent for new staff.

Business processes need to be put in place and followed, some of the start-up entrepreneurs that I have known over the years are dreadfully poor at paperwork and are happy to admit this openly. They cannot be seen to flaunt the new processes which are being implemented generally to streamline and keep the business efficient, so they leave and create another startup.

Technology

With growth comes the realisation that data needs to be captured, processes need to be in place to use and manage systems. Therefore there is often a requirement for some new systems, be they CRM, ERP, Manufacturing, Time Keeping or whatever. The implementation of any system needs to be well thought out (even if delivered in an agile manner) and if the new system is going to be that important, it is vital that its implementation does not impose constraints on the business.

In my solution consulting role I visit many organisations and therefore have first-hand experience of this syndrome at work. It’s a balancing act and there is no silver bullet. A deep understanding of change management is probably the most important element. Remember this is not new, this has been going on for years and there are plenty of case studies of organisations that experienced this, therefore is still amazes me to see organisations falling into these traps and making the same mistakes all over again.

See this very good article on how slack time can aid innovation https://www.linkedin.com/pulse/why-slack-time-so-important-innovation-phil-mckinney?trk=hp-feed-article-title-like )

But back to the central point, why do some succeed and others fail? I believe that adaptability is probably the major key along with the propensity to continually innovate, this still needs to be deeply inculcated into the culture of the business even as it grows.

In one organisation where I worked we provided all staff with a copy of the book “Who moved my cheese” by Spencer Johnson which is a really good business parable on change management and adaptability. https://en.wikipedia.org/wiki/Who_Moved_My_Cheese%3F we were able to see a marked improvement in the acceptance of some of the changes we were implementing as the business grew.

And to quote Haw from the book, “If you do not change, you can become extinct”.

 

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Microsoft Dynamics CRM

Everything CRM and other cool stuff

Microsoft Dynamics 365 Team blog

Everything CRM and other cool stuff

Hosk's Dynamic CRM Blog

All views and opinions are personal opinions of the Hosk

%d bloggers like this: