Managing Your Business Transitions Without Pain
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Managing Transitions Without Pain Preparing your organisation for growth and managing through contraction www.ipso-facto.biz
description
This is a presentation that I gave at a recent Institute of Directors event in Edinburgh focusing on 'Preparing Your Business For Growth and managing Through Contraction'
Transcript of Managing Your Business Transitions Without Pain
Managing Transitions Without Pain
Preparing your organisation for growth and managing through contraction
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Overview
• How expanding businesses can avoid the common pitfalls that lead to organisational “growing pains”
• How to preserve the critical factors that will drive business growth again, after a business has gone through a contraction.
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Hello
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Ipso FactoIpso Facto-HR services
-Consultancy-Outsourcing-Interim HRM
-Executive coaching -Clients ranging from recent start-ups to dynamic small and medium sized enterprises.
MeMe-Background in Socio-psychology-MBA -Fellow of Strathclyde Business School-15 years working with fast growth businesses
Growing pain A survey
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Purpose of the survey
• Survey of 45 early/mid stage technology companies
• Gathering their views and experiences of pain associated with business growth resultant from people issues
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Have you experienced any growing pains as a result of business growth?
Yes 73%
No 27%
How many employees did your organisation have when you first felt some growing pains?
Company size %
Less than 20 53%
21 – 49 20%
50 – 100 10%
100 + 17%
73% of the respondents felt that there organisation was feeling some growing pain when they had less than 50 employees.
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Growth Brings Challenges
Energy
Desi
red O
utc
om
es
People
Gro
wth
25 25 - 60 60 - 100
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Number ofEmployees
Rate of Outcomes
HumanEnergy
Investment Ideas
Confusion FrustrationTime to execute
You know you are at an inflexion point when…
Surviving Growth
DOs and DON’Ts
DOs - Leadership
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Clarify ownership and accountabilityClarify ownership and accountability
Create the next generation of leadersCreate the next generation of leaders
Empower them, develop them, let goEmpower them, develop them, let go
Set standards, be seen to reward accordinglySet standards, be seen to reward accordingly
Competitors
Customers
UsersTechnologies
Problems
Great people to hire
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Competitors
Customers
UsersTechnologies
Problems
Great people to hire
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DOs – Strategic Emphasis
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Force strategy development to the front line of the organisationForce strategy development to the front line of the organisation
Aspiration is not the same thing as Strategy!Aspiration is not the same thing as Strategy!
Develop HR as a strategic driving force, not as an administrative functionDevelop HR as a strategic driving force, not as an administrative function
DOs - Focus
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Be completer-finishers. Outcomes trump ActivityBe completer-finishers. Outcomes trump Activity
Focus on smaller number of priorities and do them wellFocus on smaller number of priorities and do them well
DOs – Senior Leadership
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Be prepared to specialiseBe prepared to specialise
Grow with a company or the company grows without youGrow with a company or the company grows without you
Recognise your own limitationsRecognise your own limitations
Work hard to listen to the front line of the organisation. Be seen to follow-upWork hard to listen to the front line of the organisation. Be seen to follow-up
DOs – Organisational Scalability
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Put consistent career paths and structures in place nowPut consistent career paths and structures in place now
“What would my company structure look like if I was designing it today from scratch?”
“What would my company structure look like if I was designing it today from scratch?”
Identify the gap between what the company is and what we wish it was culturallyIdentify the gap between what the company is and what we wish it was culturally
Understand the difference between Strong Culture and Obsolete CultureUnderstand the difference between Strong Culture and Obsolete Culture
Motivation
hat motivates your employees?Shouldn’t you find out before they run away?
Rapid hiring without putting in place the supporting structures to enable growthRapid hiring without putting in place the supporting structures to enable growth
Confusing HR administration with HR strategy, and hiring accordinglyConfusing HR administration with HR strategy, and hiring accordingly
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Promoting based on time-served instead of competencyPromoting based on time-served instead of competency
Believing: Good technically = Good at everything elseBelieving: Good technically = Good at everything else
Incrementing on the organisational structureIncrementing on the organisational structure
Underdeveloped CommunicationsUnderdeveloped Communications
Contraction Today, Growth Tomorrow
Managing Contraction
• Leadership• Focus• Organisation and
Culture• Communication • Strategy
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Effect of restructuring
• Feeling of insecurity• Employee workloads and stress levels may
increase• Lost of motivation• Feeling of resentment may develop
• Failure to properly restructuring a business, it is often due to poor people management and poor HRM practices
Growing pain A survey
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What are the three most important factors to help to avoid these pains?
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What are the three most important factors to help to avoid these pains?
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Have you resolved your growing pains since you identified them emerging?
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YES NO
46% 54%
Design your HR as a Strategic Enabler
Human Resources
Organisation
Resourcing
Performance
Reward
Culture
Development
Remit: Ensure that the business has the resilience and capability to deliver the business strategy.
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Thank You
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