In the last few posts, we touched on Growth and Scaling preparations. We discussed Human Capital Management, Financial Resource Management, Strategy Management, and Project Evaluation Management. In the last post in the series, we will touch on additional practical considerations.
Key Takeaways
- Limitations such as market behavior and consumer perceptions affect growth and scaling outcomes.
- Effective expectations management plays a critical role in successful growth and scaling projects.
- Recognize that growth and scaling have real-life limitations; set reasonable goals from the start.
- Implementing business process engineering and reengineering is essential for addressing limitations in growth and scaling.
- Communication is vital for keeping stakeholders informed and fostering feedback for successful growth and scaling.
Table of Contents
Limitations
All said and done, there are many limitations outside the control of any organization. These include market and competitor behavior. Consumer perceptions, external stakeholder objectives, and rapid innovations also play a role. Those and many other factors shape the overall perceived and real “business environment”. They will inherently influence the outcome of any business-related project. Hence, it is vital to account for and plan for a certain margin of error. This margin dictates changes, adjustments, and pivots.
Expectations Management
Though a stable tool of business management, expectations management is one of THE most important components of scaling and growth projects. Yet, it is clearly underutilized. Drawing on the idea that there are inherently many more unknowns in those projects, it is extremely vital to utilize both theoretical aspects. Practical aspects of expectations management theory should also be used.
Diminishing Returns
Growth is NOT unlimited, nor is scaling. Contrary to the belief that there is no ceiling to expand and grow, the reality is much different. As mentioned previously, many components are outside the influence of an organization. This makes it logical to see why there are real-life limitations. Hence, it is extremely important to start those growth and scaling projects with a reasonable outlook and goals.
Business Process Engineering (Reengineering)
When limitations and expectations management are accepted and implemented, process engineering and reengineering become indispensable. In line with other components, business process management, engineering, and reengineering have an even more outsized role. This is especially true for scaling and growth to address and accommodate both the limitations and expectations of management.
Business Philosophy
It is safe to assume that virtually no two businesses are alike. This uniqueness starts with the initial founder who sets and shapes the organizational culture. The company’s behavior in any given situation also differentiates businesses. Hence, all the previously discussed components have to be flexible. They must be adaptive in a way that syncs with the overall organizational philosophy.
Communication
All previously discussed components will have less real and perceived value if stakeholders and team members are not in the loop. It is not only crucial for them to participate in planning but also to be included in updates and results. Granted, there may be some compartmentalization necessary. This avoids information overload and/or streamlines effective decision-making. However, the information flow MUST be a “two-way street”. By facilitating a lean but flexible information channel, updates and results work their way to stakeholders. It also allows stakeholders’ feedback to flow back to the appropriate members. Consequently, the feedback loop will become one of THE most important tools in growing and/or scaling a project successfully.
Bottom Line
Scaling a business to achieve growth has many similarities with general business management principles and practices. The key to success is understanding and addressing the subtle differences that can and will make or break the result.
