Successful Growth: Setting the Context NEN Advanced Courses

Drivers for Growth

Own Growth vs. Competitive Growth Internal External Competitive Scenario Rapid Growth Stage Own Growth Competitive Growth Change Business/Relook Proposition Better Business Model Goal Project to Process Desirable Project to Process

HAMM’s Why entrepreneurs do not scale Loyalty to comrades Task Orientation Single mindedness Working in isolation

Why entrepreneurs do not scale - Some more reasons The difference between emotional aspirations vs. practical aspects in growing Assessing competitive environment and firm’s own characteristic strengths Ability to spot, recruit and retain talent at the right price Raising adequate capital at the right time The ‘Customer is King’ trap

3 keys to success and scaling up Customer acquisition and retention Organization structure People mindset

Leveraging Growth Opportunities Kinder Dance Video Ballet of Success – Case Study

Case Questions: Ballet of Success Should she accept the offer to tie up with this pre-school chain? What should she do to move forward and reap this growth opportunity? Is she ready for the challenge? Why?

APPLYING FRAMEWORKS OF GROWTH

Successful Growth Applying frameworks to understand different stages of growth for both large and small businesses Greiner Churchill & Lewis

How Organizations Grow EvolutionRevolution Steady or prolonged growth and Stability Substantial organizational change Quiet periodsTurbulent Times No major economic setback or internal disruption Serious upheaval of management practices Modest adjustments to maintain growth Eg: Centralized Practices New sets practices for evolutionary stage Eg : Demands for Decentralization Source: Greiner’s Evolution and Revolution as Organizations grow, HBR, 1998

Greiner’s Five Phases of Growth Age of the Organization Creativity Direction Delegation Coordination Collaboration leadership autonomy control red tape “ ? “ YoungMature Small Large

Systems, Leadership, Strategy and Stages of Growth Churchill & Lewis’s Five stages of Small Business Growth – A discussion Analyzing key factors for growth – an exercise

Some Mission statements “ We have committed to synergistically fashion high-quality products so that we may collaboratively and inexpensively provide access to leadership skills in order to solve business problems”

Building your Company’s Vision

Some more… “It is our job to continually foster world-class infrastructures as well as to quickly create principle-centred sources to meet our customers’ needs”

And Some more… “Our challenge is to assertively network economically sound methods of empowerment so that we may continually negotiate performance-based infrastructures” Source: Dilbert’s Automatic Mission Statement Generator

Articulating a Vision Enduring success is rooted in the founder’s vision for the enterprise Vision provides the context and stimulates progress What should never change and what should be open for change? Vision = Core Ideology + Envisioned future

Core Values Essential and enduring tenets of an organization Intrinsic in value Between 3 and 5 in number Identifying core values – Mars Group What core values do you personally bring to work? Google: “ Don’t be evil”

Core Purpose Core purpose is a raison d’e^tre not a goal or business strategy People in truly great companies talk little about earnings per share Organization’s reason for being Asking the ‘five Whys’ Walt Disney – To Make people happy

Core Ideology = Core Values + Core Purpose Core ideology provides the glue that holds an organization together through time You do not create or set core ideology – YOU DISCOVER IT and you cannot fake it Core ideology is to guide and inspire; not to differentiate Meaningful and inspirational for people inside the organization; may not be exciting for outsiders Find people who share your core values and purposes and let others go

Envisioned Future = BHAG + Vivid Description Big Hairy Audacious Goal (BHAG) year Unifying focal point of effort and a catalyst for team spirit Has a clear finish line NASA’s 1960 moon mission Only 50-70% of probability of success but organization must believe that it is reachable

Types of BHAGs Target BHAG: Become a 125 bn $ Company by 2000 – Wal-Mart Common Enemy BHAG: Crush Adidas - Nike in 1960s Role Model BHAG: Become the Harvard of the West – Stanford University 1940s Internal Transformation BHAG: From computer component manufacturer to top five computer brands in the world - ACER

Vivid Description Vibrant, Engaging, Specific Description of what it will be like to achieve the BHAG

Visioning Workbook