Why is my company not growing as fast as I want it to grow?
“why is my company not growing as fast as I would like it to grow” is one we get from business owners every day. The average business fails to grow at the speed the founder(s) wants because it is missing essential practices in its management team.
In working with business owners, we have found recurring misconceptions in what it takes to get a business to grow to the next level or break through their glass ceiling. Some companies hit the glass ceiling at $7 million, others at $16 million, some at $28 million and the list goes on.
Company not growing common causes.
There is a common cause that stops every company from getting to the next level and it is always the management team. It can be the owner or any one or more of the executives in the company. The owner needs to be the leader that drives and motivates the rest of the management team to grow the company. Sometimes, the owner is a great leader and does a great job driving and motivating the team to grow the company, yet growth does not happen.
Company not growing, where should I look next?
What should you look at next? The members of the management team. Have one or more members of the management team hit their personal glass ceiling? This is generally the case. Now what do you do? You need to look at internal restricting of the management team.
Prior to beginning this internal restructuring, the founder should consult with an outside third party. This is to insure there are no biases. They will help analyze the strengths and weakness of what every person in the company sees in their department. Yes, the people on the line see things in their daily work that they know will make the company operate better. However, very few companies have built in processes that allow these employees ideas get presented to management.
Line employees watch companies waste resources every day and say nothing for a variety of reasons. These reasons are mainly because they don’t believe anyone in the executive team cares. And yes, this can happen even with small companies only 30 employees. When your company has 50, 100 or 500 employees the waste is even greater.
Is there any good news?
The good news is these people want to be heard, in a safe environment, which is why we recommend you use an outside third party to conduct the research. The normal results show one or more executives in the company are past their comfort zone and don’t really know how to manage their department to a higher level with greater productivity.
It may also be that systems the company is using were not chosen correctly when the company adapted these systems. This often happens when an inexperienced management team is sold a system that is either not the correct fit for the company or has fallen behind in their own technology development.
Company not growing? Is there a Simple answer?
When a business is not growing there is rarely one simple answer but rather a complexity of events that need to be untangled. These might include staff, strategy, new technologies, pricing, competitor activity, internal struggles, external influences…… and so the list goes on. Having an independent outside person walk you through these complexities with impartial fresh eyes, can be most revealing.
This is analogues to the old saying, you can’t see the forest for the trees. In every company, there are only two problems that encompass every possible problem a company will have. One problem is it is human error and the other is it is a process error. We will be discussing these i future posts. The important thing to remember is there is a solution for every problem and our endgame is to help all of our readers scale their company to highest level they can dream of. There are many billion-dollar companies built by people whose only asset is their passion for what they are building.
Here is a link to a webinar hosted by Mike Filsaime you will find nuggets here! Replay of Webinar
To your Growth and Profits
William De Temple
PS There is a great software for aligning the vision of people within an organization. It’s a tool that can really help a CEO see where the vision of teams differ. It is used by the military and large organizations such as Fedex. If you want to know more please contact us here
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