Weekly Business Insights from Top Ten Business Magazines | Week 304 | Entrepreneurship | 1

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Week 304 | July 7-13, 2023.

3 Crucial Factors to Manage Your Company’s Growth Without Losing Its Spark

How a fast-growing business can restore its entrepreneurial soul

By Ranjay Gulati | Inc Magazine | July 7, 2023

Listen to the Extractive Summary of the Article

An irony play out time after time: small companies almost always yearn to be more “grown up” and professional, while mature companies wish they could be more youthful and freewheeling again.   Why can’t more organizations find a happy medium between the two extremes as they grow?

Most founders of fast-growing startups are unwilling to introduce the systems and processes they need to sustain their businesses. When they eschew order and discipline, however, they pay a steep price: chaotic operations and unpredictable performance.  Founders must introduce four main elements if they are to avoid descending into chaos, and improve their chances of long-term success: 

1. Hire specialists. An “all-hands-on-deck” approach may work in the very beginning, but as an organization expands, functional experts in areas such as sales, HR and marketing are necessary. 
2. Install management structures. Without more delegation of management, decisions end up in a bottleneck at the very top.
3. Add planning and forecasting capabilities. Improvisational decision-making can work well at first, but analyzing data and setting performance goals is key as a company matures.  
4. Reinforce cultural values. As an organization becomes more complex and far-flung, founders must make a concerted effort to ensure that all employees are aware of its unifying purpose. 

Nevertheless, the businesses who had done all the above to manage chaos lost the energy or soul of an organization.  It inspires people to contribute their talent, money and enthusiasm and fosters a sense of deep connection and mutual purpose. As long as this spirit persists, engagement is high and startups remain agile and innovative, spurring growth, But when it vanishes, ventures can falter, and everyone perceives the loss.  Companies needed to focus on three crucial factors in order to recapture their original entrepreneurial spirit.

1. Customer connection. Businesses were more likely to thrive if “founders and employees intimately understood the perspectives and needs of the people to whom their products and services were targeted, and felt personally connected in a way that unleashed their energy and creativity.” 
2. Employee experience. Employees who felt that they had both “voice” and “choice” were most likely to help a company retain its original startup essence. 
3. Business intent. The most successful companies stayed true to their original reason for being.

So often entrepreneurs, consultants, and scholars emphasize the need to implement structure and systems as a business grows, missing the importance of preserving its spirit. We can and should focus on both. With effort and determination, leaders can nurture and protect what’s right and true in their organizations.

3 key takeaways from the article

1. An irony plays out time after time: small companies almost always yearn to be more “grown-up” and professional, while mature companies wish they could be more youthful and freewheeling again.   Why can’t more organizations find a happy medium between the two extremes as they grow?
2. When organizations eschew order and discipline, however, they pay a steep price: chaotic operations and unpredictable performance.”  Founders must introduce four main elements if they are to avoid descending into chaos and improve their chances of long-term success: hire specialists, install management structures, add planning and forecasting capabilities, and reinforce cultural values.
3. Companies needed to focus on three crucial factors in order to recapture their original entrepreneurial spirit: strong customer connection; enrich employees’ experience by giving both voice and choice; and remain true to your original reason for being.

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Topics:  Startups, Growth, Purpose