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Rapid Growth Can Ruin A Business

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When It Pays To Pause

I have two recent examples of where the goal for growth has been extremely successful. In each case, the growth has literally exceeded all expectations and that growth rate has  threatened the heart beat of the company. In both  instances the core competency of  management and their support structures was misjudged - that core competency was inadequate.

The lessons are many . The foundation lesson is: when business starts moving into the next level  of performance, management who  has been there already needs to be part of the new picture. Relying on people and processes who were fine at the previous levels of performance, is using the Dracula Organization Theory Principle  when growth accelerates at a fast pace.

What is the Dracula Organization? It looks fine during the day but is sucking the life out  of your business in the night - those periods when you are not able to inspect as closely as you did before.

You are not like to  agree with everything in this blog.  When you don't - look in the mirror and remind yourself your thinking is wrong. Stay tuned for more valuable lessons from actual experiences and observations in the real world. 


 

8/7/2005 - 6:09 PM
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Steve Pohlit is a CPA has his MBA and has been the CFO of several major domestic and international companies. Today Steve is an expert business consultant focused on helping companies improve their business performance including growing profits, revenues and customers. For a FREE 6 week mini course where you will receive 10 easy to implement action steps guaranteed to increase business revenue in profits by at least 30% in the next 90 days, please visit www.StevePohlit.com