1. Leading at the Speed of Growth
The Challenges and Initial Growth
Avimanyu Datta, Doctoral Candidate

2. Question
Why do you think even after years of its formation, Michael Dell, Bill Gates are still running their companies whereas Hewlett, Packard, Paul Allen have opted out?
What determines survival of a firm? And that of the founder?
Are those interlinked?
The very behaviors and habit patters of entrepreneur that leads success in one stage can lead to failure at the next one?

3. Challenges of Growth
Three distinct stages: Initial Growth, Rapid Growth, Continuous Growth.
Mark the evolution of a firm after it goes through a start up stage and becomes a real company.
In these stages there are severe changes to your organizations, in terms of products, services and even the type of organization. Eg, Intel, IBM, Nokia

4. Challenges of Growth
Develop Markets, products/ services, customers, and strategies to win. (Niche Vs Cost Leader)
As your company grows you must alter from the “do it yourself mode” to delegation.
Develop internal process for planning, management and workflow, as well as infrastructure to sustain expansion of growth
Develop teams and people to perform the tasks that produce exceptional leaders
Develop cultural environment that can embrace change, and where people can work in teams

5. Challenges of Growth
Develop cultural environment that can embrace change, and where people can work in teams
Change your leadership style to map the stages of growth. (Exploration Vs Exploitation) Balance is necessary. Xerox Vs Microsoft.
Balancing short term vs. Long term goals

6. Challenges of Growth
Communicate well to produce alignment between short-term, and long-term goals; exploration and exploitation.
People are key assets. Gary Hamel’s perception “ Management of Innovation begins at managing the innovators, who give eight hours each day of their lives for your company”.
Learn from failures of other and your own.

7. Vital Signs of an Entrepreneur
Visionary and Pioneering not only a company but an idea.
Great at seeing possibilities where others don’t
Passionate and Energetic
Creative and innovative idea generators
Proactive and future focused
Risk taking
Problem solvers
Determined to create wealth and make change.

8. Evolution of your role as a CEO
Dominate the Industry
Continuous Growth
Change Catalyst/ Organization Builder/ Strategic Innovator
Turbulence
Rapid Growth
Lead the Market
Team Builder/ Coach / planner/ Communicator
Turbulence
Initial Growth
Drive Sales
Delegator/ Direction setter
Develop product
Startup
Doer/ Decision Maker

9. Evolution of your role as a CEO
Reinventions in the company.
Successful firms reinvent themselves. Eg. IBM, HP, starbucks, Amazon, Intel, Apple
Complex organization
Alliances, mergers, IPO
Continuous Growth
Widespread acceptance of its products
Gain Significant share in its market
Try to be a market leader
New Hires challenge in integrating them
Rapid Growth
Sales Driven
New or different Product launch to capture market
Fast faced, flexible, chaotic and Aggressive
Initial Growth
Figuring out what products or Services to offer
Startup

10. Initial Growth Initial Growth Drive Sales Delegator/ Direction setter
Launch Differentiated Products
Capture market Share
Grow revenues
Delegator/ Direction setter
Develop product
Startup
Leader
Doer/ Decision Maker

11. Initial Growth Stage: Company Goals
Launch a product that offers something different. Low cost strategy may not be viable for a new entrant unless you are the first one in market.
Get Noticed by winning some impressive customers, possibly business leaders.
Grow Revenues
Capture Market Share

12. Initial Growth Stage: Characteristics
Fast paced
Highly flexible/ willing to experiment
Fast exploration and exploitation time
Chaotic
Sales-Driven
Close to customers
Lacks structure

13. Initial Growth Stage: Signals for changing your roles
Not enough time
Impossible to do everything
Everyone wants your time and you can’t seem to get it
You don’t know which of multiple growth opportunities to pursue
Feel pressurized because you’re managing all the risks alone.

14. Initial Growth Stage: Dangers if you don’t change
Resented as a manager and a bottleneck.
People will be de-motivated and wait for you to make all decisions.
The company will lose focus.
Priorities will change in micromanagement as one tends to adopt the ideas of the moment philosophy
Growth will be impeded.

15. Initial Growth Stage: Critical Responsibilities
Articulate and communicate your values and visions
Use resources creatively
Watch Critical performance indicators.
Integrate input from stakeholders with your own perspective
Hire multitalented people who share your values and complement your skills
Use Mentors

16. Initial Growth Stage: Personal changes in your leadership role
Manage proactively
Begin delegating responsibilities; establish systems and a structure with clearly defined roles, responsibilities and priorities.
Set up functional roles
Stop making all decisions
Stop solving all problems and answering all questions
Trust others and make them accountable for results.

17. Initial Growth Stage: Personal changes in your leadership role
Start planning for the future. (Bigger Picture)
What other areas should we invest?
What are our capabilities?
In-source Vs Outsource?
Accept the need for processes and structure
Share credit and limelight with others
Consciously spend a portion of your time on the big picture of your business, not just day-day operations.

18. Questions? Comments?