Business Growing Pains – What To DO When It’s Time for Change
Last month, we shared how to tell the difference between typical business problems that require typical solutions and the type that are indicative of real growing pains and, therefore, require real change (read last month’s article here). This month, we’re completing our series with what you as the business owner need to do to move your organization forward.
As we’ve said, what got you here, won’t get there, and being willing to explore and embrace change will likely mean the difference between lackluster performance and sustainable, profitable growth.
But before we get into what to do, we have one BIG don’t: DON’T LET GO OF CONTROL TOO SOON. Although a key step for effective change is developing a strong leadership team to help you run the company, it’s critical not to step back too quickly. CEO’s who give up operational, financial and accounting control too fast not only sacrifice a more successful transition to the next level, but also risk embezzlement. Checks and balances must be in place, before you let go of control.
With this in mind: What should you DO When It’s Time for Change? There are four areas that need to be examined once you see the signs of business growing pains:
- Look at What: At the start, organizations adopt processes to achieve a specific purpose or goal. Then, as the business grows, the purpose can shift, but processes don’t. In fact, it’s not uncommon for staff to have no idea why they’re doing what they’re doing, only that it’s what’s always been done. Look at what your organization trying to accomplish and what it’s doing to get there. Revisiting business objectives will make it easier to determine whether or not the processes in place right now are the processes that will take you to a successful tomorrow.
- Look at How: In addition to matching processes with purpose, it’s time to look at how your organization is working from an efficiency standpoint overall. Conduct a process review to reveal how many times products/services are being touched and reworked prior to producing revenue – and after. Lean business practices state that processes should include the minimal number of touches start to finish, and it’s likely changes will need to be made to accomplish this. When implemented correctly, a lean approach will provide increased efficiency and control.
- Look at Where: Next, examine where people and departments are situated. If there’s wasted space or if employees who work together waste time moving back and forth, break down or build walls so that your layout makes practical sense and enables efficiencies. You may even be able to reduce overhead if you discover your organization doesn’t need the entire space it’s using.
- Look at Who: The final area to examine is staffing. Identity employees who’ve been outgrown by the organization or who are under performing. You might discover that you have the right people, but that they’re no longer in the right role. Or, that it’s time to let someone go. Although staffing changes can be painful, they’re often necessary for growth, so be objective. Additionally, there are circumstances when you have to, or want to, keep people who are ineffective. In these cases, it’s key to develop new roles in which these employees can make a positive contribution.