MOMENTUM: 5 – 20 EMPLOYEES

SUCCESS ATTRIBUTES

  • The owner/founder sets the pace.
  • Has clear focus on leverage points and strengths of the business.
  • Stays focused, on strengths and on the business plan.
  • Communicates the vision well and is typically the best sales person for the company.
  • Has a clear financial model and understands how and when they make (or lose) money.
  • Handles administrative duties in “personal” time.

COMMON PITFALLS

  • The owner/founder becomes the obstacle.
  • Stuck between greed and fear, he/she lives in survival mode and will take on bad business just to get business.
  • Easily distracted.
  • Lacks discipline to guide the business.
  • Makes side deals, resulting in inconsistencies with clients and employees.
  • Fails to leverage dollars and resources back into the company.
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METAMORPHOSIS: 20 – 65 EMPLOYEES

SUCCESS ATTRIBUTES

  • Owner/entrepreneur has successfully scaled early successes to become a manager.
  • The founder’s vision is ingrained in the culture.
  • Management is actively engaged in all aspects of the business, and has established trust throughout the organization.
  • The company effectively responds to change, whether it’s growth or decline.
  • Founder establishes controls across the business with matrices for employee performance, financials, etc.
  • Management remains in touch with the customer.

COMMON PITFALLS

  • Business is expanding without organizational alignment.
  • Original core messages have been lost.
  • Process issues—either no business processes or a management too focused on process.
  • There is a lack of alignment between talent and need. Talent is either focused on the wrong things —or you have the wrong talent.
  • Management is out of touch with the needs of the organization and the customer.
  • The benefits of entrepreneurship get lost in the transition to management.
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STABILITY: 65 – 100 EMPLOYEES

SUCCESS ATTRIBUTES

  • Company has stable management and a consistent culture that revolves around key principles or philosophies.
  • Management systems have matured with fiscal, organizational and managerial discipline.
  • Company has successfully aligned disciplines with key talent.
  • Company has at least one solid cash cow.
  • Company has evolved into a professionally managed organization with an entrepreneurial spirit.
  • There is focus on evolving the company through organizational design and development.
  • Proactive review of organizational readiness for the future.

COMMON PITFALLS

  • Founders vision has been lost, management and the culture is fragmented.
  • The company has outgrown its managers, or hired in professional managers who are not a good fit for the culture.
  • Leadership is hung up on talent costs necessary to drive the organization forward so they don’t hire the best people they can find.
  • Company politics create distractions.
  • The company suffers from a failure to innovate.
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FOCUS: 100+ EMPLOYEES

SUCCESS ATTRIBUTES

  • Leadership focuses on the future of the company, and considers succession planning and leadership development.
  • More attention is paid to strategic planning.
  • Strong base of business, but has the ability to innovate and diversify.
  • Clearly defined policies and procedures.
  • Not easily distracted.
  • Less need to worry about day-to-day issues.

COMMON PITFALLS

  • The leadership is the wrong fit for the organization or vision.
  • There is a lack of succession planning to ensure the long-term health of the company.
  • The organization lacks direction.
  • Senior management has lost touch with product and customers.
  • Leadership doesn’t understand the role of management.
  • Company lacks profitability.
  • Organizational and departmental politics.
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