Growing pains – when success meets complexity

There is an amazing feeling for the entrepreneur and the onlooker of a start-up business blossoming and growing. We all like to hear of them starting ‘off the back of a cart’ and how they progressed to an established player in their sector. Maybe smaller than the rest, but seen as an ‘industry shaker’. A broad portfolio, employees hired for specific professional roles and ready to take on the world.

Does this resonate with your company?

The Revenue line pointing skyward, healthy forecast and a profit profile matching the upward trend, then something unexpected happens; The growth engine starts to stall, cash flows less predictably and customers drift away. Nimbleness lost.

This is the phase that I term as the ‘complexity point’.

What started as a personal business with a proprietor with focus, common sense and ultimate control, finds itself with a wide product set, creaking processes and an organisation which although taken on as human capital is looking more like a liability.

I’ve tried to reason with when we can anticipate the complexity point starting to kick in, but I have arrived at a summary conclusion that it may be different for each business, but with common attributes to what leads to the hiatus.

It is not a privilege to SMEs, complexity will exist in most of the mid to large corporates too.  And, across the sectors, there are different angles to the complexity, from capital-intensive businesses where the focus may be on the ‘plant’ right through to Professional Services organisations, but common signals will be present for each one.

There are ways of tackling the complexity challenge that requires a retrospective step in order to move forward, but my guidance at this stage is that it is not a one-off event and it happens in cycles. The important role of the Executive is to keep pace with it, anticipate that it will happen and be proactive.

About David Dugdale
Business Transformation Consultant

Comments are closed.

%d bloggers like this: