Successful Growth:
Setting the Context
NEN Advanced Courses
Drivers for Growth
Own Growth vs. Competitive Growth
Competitive Growth
Project to Process
Better Business Model
Desirable
Internal
Competitive
Scenario
Own
Growth
External
Rapid Growth
Stage
Goal
Change Business/Relook
Proposition
Project to Process
HAMM’s Why entrepreneurs do not
scale
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•
•
•
Loyalty to comrades
Task Orientation
Single mindedness
Working in isolation
Why entrepreneurs do not scale Some more reasons
• The difference between emotional aspirations vs.
practical aspects in growing
• Assessing competitive environment and firm’s
own characteristic strengths
• Ability to spot, recruit and retain talent at the
right price
• Raising adequate capital at the right time
• The ‘Customer is King’ trap
3 keys to success and scaling up
• Customer acquisition and retention
• Organization structure
• People mindset
Leveraging Growth Opportunities
• Kinder Dance Video
• Ballet of Success – Case Study
Case Questions: Ballet of Success
• Should she accept the offer to tie up with this
pre-school chain?
• What should she do to move forward and reap
this growth opportunity?
• Is she ready for the challenge?
• Why?
APPLYING FRAMEWORKS OF
GROWTH
Successful Growth
• Applying frameworks to understand different
stages of growth for both large and small
businesses
• Greiner
• Churchill & Lewis
How Organizations Grow
Evolution
Revolution
Steady or prolonged growth and
Stability
Substantial organizational change
Quiet periods
Turbulent Times
No major economic setback or
internal disruption
Serious upheaval of management practices
Modest adjustments to maintain
growth
Eg: Centralized Practices
New sets practices for evolutionary stage
Eg : Demands for Decentralization
Source: Greiner’s Evolution and Revolution as
Organizations grow, HBR , 1998
Greiner’s Five Phases of Growth
Large
Collaboration
Coordination
“?“
S
i
z
e
Delegation
Direction
red tape
control
Creativity
autonomy
Small
leadership
Young
Age of the Organization
Mature
Systems, Leadership, Strategy and
Stages of Growth
• Churchill & Lewis’s Five stages of Small Business
Growth – A discussion
• Analyzing key factors for growth – an exercise
Some Mission statements
“ We have committed to synergistically fashion
high-quality products so that we may
collaboratively and inexpensively provide access
to leadership skills in order to solve business
problems”
Building your Company’s Vision
Some more…
“It is our job to continually foster world-class
infrastructures as well as to quickly create
principle-centred sources to meet our customers’
needs”
And Some more…
“Our challenge is to assertively network
economically sound methods of empowerment
so that we may continually negotiate
performance-based infrastructures”
Source: Dilbert’s Automatic Mission Statement Generator
Articulating a Vision
• Enduring success is rooted in the founder’s vision
for the enterprise
• Vision provides the context and stimulates
progress
• What should never change and what should be
open for change?
• Vision = Core Ideology + Envisioned future
Core Values
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•
•
•
•
Essential and enduring tenets of an organization
Intrinsic in value
Between 3 and 5 in number
Identifying core values – Mars Group
What core values do you personally bring to
work?
• Google: “ Don’t be evil”
Core Purpose
• Core purpose is a raison d’e^tre not a goal or
business strategy
• People in truly great companies talk little about
earnings per share
• Organization’s reason for being
• Asking the ‘five Whys’
• Walt Disney – To Make people happy
Core Ideology = Core Values + Core
Purpose
• Core ideology provides the glue that holds an
organization together through time
• You do not create or set core ideology – YOU
DISCOVER IT and you cannot fake it
• Core ideology is to guide and inspire; not to
differentiate
• Meaningful and inspirational for people inside the
organization; may not be exciting for outsiders
• Find people who share your core values and
purposes and let others go
Envisioned Future = BHAG + Vivid
Description
• Big Hairy Audacious Goal (BHAG)
• 10-30 year
• Unifying focal point of effort and a catalyst for
team spirit
• Has a clear finish line
• NASA’s 1960 moon mission
• Only 50-70% of probability of success but
organization must believe that it is reachable
Types of BHAGs
• Target BHAG: Become a 125 bn $ Company by
2000 – Wal-Mart
• Common Enemy BHAG: Crush Adidas - Nike in
1960s
• Role Model BHAG: Become the Harvard of the
West – Stanford University 1940s
• Internal Transformation BHAG: From computer
component manufacturer to top five computer
brands in the world - ACER
Vivid Description
• Vibrant, Engaging, Specific
• Description of what it will be like to achieve the
BHAG
Visioning Workbook