When it comes to coping with the risks of business success and rapid growth at least you’re not alone:
- 91% of companies on the Inc Magazine 500 Fastest Growing list responded that they were not ready for the demands of rapid growth and success.
- 90% of 700 business leaders surveyed said their operating risks are growing and 69% report they had already experienced a major internal, operating failure in responding to demands of success and growth (Journal of Accountancy).
What are the operating risks of growth and how do operating risks appear? These are the risks of failures in responding and creating value for customers in day-to-day operations. Examples include:
- Breakdowns in manufacturing or service performance.
- Poor customer support and communication from customer perspective.
- Scheduling mix-ups for delivering products and services.
- Quality failures and mistakes on customized orders for products or services.
- Spiraling costs due to failures and expediting to get back on track.
- Stress, lower morale and higher employee turnover.
Solutions from Bret and Tech Marketing reduce operating risks and target three keys to success in rapid growth:
- Improve first pass yield: Get it right the first time with cost effective processes, systems and ‘people incentives’ that fit with limited resources.
- End cascading mistakes: SCAMPER solutions create innovative improvements that flow to your business’ bottom line.
- Eliminate sub-optimizing: Don’t treat the symptoms of operating risks – fix the root-causes of risk in rapid growth for the entire business.
2) Leadership bandwidth for new demands: Are you coping or leading? Stop being the 24/7 fire chief and smooth the roller coaster ride of leading growth.
- Focus on driving performance – not averting disaster. Lead by managing business outcomes – not micro-managing routine activities.
- Build advance–warning performance indicators: Give yourself time to respond, time to ‘fix it.’ Stop being ‘blind-sided’ by sudden events.
- Implement employee incentives that target and reward risk reduction: Incentives that cut costly mistakes and ‘fire fighting’ in routine business operations.
3) Freedom to do what you do best: Isn’t that the source of profitable success? ….isn’t that why you started this business?
- Build your internal operations to handle external growth… without losing the entrepreneurial, innovative spirit that created your business success. Reliable, consistent processes, performance measures and rewards will get the job done.
- The results? You’ll create long-term value and sustained profits…by doing what you do best for the business.
Growth is a great opportunity, no question. But how to make all your business operations work together to cope with growing external demands and achieve business goals? Solutions are uncertain – especially with few resources and little time. The uncertainty about what to do, how to make it all work and when to make it happen has major consequences for the company’s future – and for the entrepreneur. Growth is risky – more like a roller coaster with unpredictable ups and downs than the smooth upward curve shown in so many books.
But the risks of rapid growth aren’t a law of nature that can’t be changed. We can reduce the potential risks of rapid growth. The solutions below plus the techniques to implement them cut operating risk in your growing company. The results: Less crazy days and fire fighting while profits grow with sales.
Strategies for preventing, reducing and reacting to the risks of rapid growth.
These solutions work because they’re designed for growing companies – not just big corporations. To find out more about the strategies, just go to the home page and click on “Strategies and techniques to reduce risk.”
Please contact Bret for a no-obligation consultation. Please click here to reach Bret.