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Motivating Change: Business Beyond Startup
July 31, 2008
By Joyce Harper
There comes a time in the life of a business that is beyond startup, but not yet maturity. This stage is epitomized by the organization's steadily increasing customer base, the growing number of employees and the rising demand for products/services. As exciting a time as this can be for a growing business, many leaders find themselves overwhelmed by the changing demands of their expanding operations; and, as a result, they are slow to make the necessary shift to a founder/CEO position.
Making the shift from managing a startup venture to navigating the growth of an emerging company can be arduous. Moreover, the shortage of published resources addressing this stage of business yields an even slower transition, as employees and managers alike struggle between growing the business and keeping operations the same. This dilemma sets the groundwork for one of the greatest oxymorons in business: growth without change.
The question that plagues many business leaders at this stage is what kind of change is required? The answer, in a word, is structure. When a thriving business is finally off the ground, adding employees and customers at a steady rate, it’s time to add organizational structure in the form of policies, procedures, operating practices and guiding principles. Organizational structure provides for the consistent production of a product or service regardless of the size of the company; it also provides guidelines for employment, an explanation of company benefits and the like.
However, before attempting to develop organizational structure, business leaders must first take an objective look at their current business process. Is the founder/CEO training or hiring strong leaders? Is he or she able to delegate authority without overriding the decisions of the leaders? Is the founder/CEO ready to release oversight of the day-to-day operations to competent managers?
After the founder/CEO, or perhaps the leadership team, has determined that they are ready to institute or rework guidelines for business operations, the first step is to determine the procedures required and the timing of the implementation. It is important to produce a realistic timetable for the development and implementation of the new structure because organizational redevelopment is not quick or easy.
Nevertheless, once business leaders decide to focus on this aspect of growth, they are inclined to attempt to get it over with as quickly as possible. This is the wrong approach. Never rush through processes. Set a timeline and stick to it as much as possible.
Organizations that have an informal or unwritten structure may want to redevelop or strengthen the existing guidelines. Start with an unbiased assessment of the current policies to determine if they truly meet the needs of the organization. From that assessment, the leaders will have a good indication of the procedures that need to be reworked or redone. It can, however, be more difficult to revise existing policies than to develop new ones from scratch. Therefore, leaders should pay particular attention to recent changes in employment laws and carefully compare new and existing benefits packages to ensure they have what is best for the company and the employees.
Once the employment policies and procedures have been completed, the leadership team should turn their attention to the development of procedures for the consistent delivery of their product and/or service. Explicitly explain how employees are expected to go about their work. For example, if there is a sales team, how are they expected to represent the company to clients? Or if there is an assembly line, how are the products expected to be assembled? Written standards of operation provide a measurable benchmark for existing employees and a reference for new employees. It also serves as an assurance for customers that they will receive the same quality product each time purchase they purchase.
Organizational structure could also includes fiscal polices, lines of authority, reporting hierarchy and endless industry specific governance matters. Still, when done right, organizational structure provides the foundation for exponential growth and expansion. Therefore, if it is not possible to objectively access the structural needs of the organization, leaders should invest in a qualified consultant to provide the information and the assistance necessary to build the company's processes and procedures.
Organizational structure is not to be shied away from due to the time and effort required to initiate and introduce it throughout the company. The short term stress associated with the development of structure is far outweighed by the long term benefits of instituting an organizational framework upon which a company can grow for years to come.
Joyce Harper is an online columnist for Sales & Marketing Management. She is the Founder/CEO of Sharper Solutions, LLC, a management consulting firm specializing in organizational development and strategic management. She works with companies nationwide helping them create organizational effectiveness and increase their revenue building potential. Joyce is a sought after speaker, trainer and business consultant. Contact her through the company Web site at www.sharpersol.com.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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