At a certain point, growth companies experience inevitable growing pains in their development. The organization faces its limits. The first steps towards professionalization have been taken, but the process is anything but smooth sailing. The internal operations no longer function the way they are supposed to. Everything is slowly getting into a rut. Growth, revenue and profits are constantly under pressure. As a founder you are facing great challenges to continue the pace of growth while ensuring profitability.
New structure does not work
As a first answer to this complexity, many growth companies develop a new organizational structure with extra positions and layered responsibilities. New procedures are implemented.
It soon turns out that this new organigram does not function as desired. In stead of creating flexibility, the organization slows down.
Slow decision processes
Decisions are not made anymore, or made too late. Too slow decision processes are often the first symptoms of emerging growing pains.
Trouble attracting talent
Slowly, things turn from bad to worse. Once they were strong and motivated employees, now they leave the company, disappointed. Attracting new talent is very cumbersome.
Costs keep rising. The cashflow is insufficient. Targets are no longer achieved. The number of complaints rises, customer satisfaction rates drop.
Delusion of the day prevails
The delusion of the day prevails. Looking at the future from a strategic point of view happens less and less. Management and employees are discouraged, because the recently established organizational structure does not function as desired.
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