Growing Fast May Not Be a Good Problem to Have
June 2007
Growing Fast May Not Be a Good Problem to Have An Owner in Pain The owner pleaded to the group of business buddies gathered around him in the room to buy his company at any cost. He was through. It wasn't fun any more. Customers were complaining and threatening to quit buying. His team was fraying at the edges under the pressure of unrealistic demands. Every day was one crisis after another. His confidence was in the tank.
Sounds like a business in deep trouble, right? Not so. The company's fortunes had never been so bright. Sales had almost doubled in the last two years. Profits were way up, close to three times the industry average, enough to put a record amount into the employee profit sharing fund. Several competitors sold out or closed up in the last year unable to make a profit in the extremely competitive market. Business was booming and difficult to stay up with. As the saying goes, a good problem to have. Playing the Blame Game With all these favorable conditions and results, why was the owner so miserable? Because he'd built his business on great customer service and believed deeply in creating a great place to work for his employees. He blamed himself for customers complaining about late deliveries and the strain showing on the faces of his team members.
All the apparent success didn't mean much without the achievements that mattered most to him. The highest values his heart longed for weren't being met and it hurt. He beat himself up unmercifully for what was happening; convinced there was more he should have done. So to him, growing this fast was not a good problem to have. Does This Scenario Sound Familiar?
When business increases unexpectedly and then maintains that new level for a while, it surpasses the capacity of resources and processes designed to handle a lower level of activity. Service levels drop, tempers flare, blame creeps in, and job satisfaction wanes. Everyone at every level of the organization feels the pressure, most intensely in those who care the most. It usually shows up as working harder but less effectively until you lose heart and meaning. People feel discouraged and some just quit out of frustration or hopelessness.
How do you Solve this Good Problem?
First, admit it is a problem. You can fool yourself by rationalizing that chaos is OK as long as the financial results are there. Those results aren't sustainable for long if the organization isn't meeting customer expectations. Your reputation is at stake and word travels fast. Second, seek support. It's easy to blame yourself into paralysis when you believe you shouldn't be in this situation. Every excellent company experiences growing pains. It's part of being successful. Find friends and associates whose counsel you trust, and with whom you can share your concerns and frustrations. You'll usually find your problem is not unique. Others have been there too. That alone is comforting. Third, and most important, spend some time in self-reflection with the remembrance to come back to clarity about what you're facing and what your highest course of action is. It can be helpful to have someone guide this process for you if you feel too scattered or hopeless to make headway on your own. (The Remembrance is a tool LionHeart teaches to help people access their inner wisdom. To learn more about it, click on this link: http://www.lionhrt.com/theremembrance.htm. Fourth, once clear and centered take an inventory of your organizational strengths and weaknesses.
- Where are you meeting or exceeding customer expectations and where are you falling short?
- Have you set clear goals? Are you meeting them? Are they realistic for your current resources?
- Do people know what is expected of them? Are there clear performance standards for the key activities in the organization? Is performance measured regularly?
- Do you have the talent on board to bring the organization up to the current need and ready for the next phase of growth? What development and training is needed? Do you need to look outside for what's missing?
- What are the two or three most important initiatives needing implementation to move the company back into alignment with your most cherished values?
Finally, gather your key players together and have a no-kidding conversation about the state of the business. Ask for their input and support. These are the people who helped get the business to its current level of success. They know where the pain is and have great ideas. Check your assessment with them for gaps or other viewpoints.
Back to our Owner in Pain The owner in this story followed the process outlined above initially by following his own instinct. His pain was so intense he had to admit it to himself first, and then to that trusted group of colleagues who let him know he wasn't alone. They all had experienced similar 'downers' in their careers. They offered their support and a few key questions to get him out of paralysis.He had learned the practice of remembrance and used it to his advantage. He realized the "too much business" issue resulting in their less than usual customer service was not a result of some serious personal character flaw. It was a natural result of performing at a high level for a long time. Customers had loaded them up with more and more orders because they had earned it. In that sense, this was a good problem to have because it required new learning on his part and the rest of his organization.
He correctly assessed that his organizational structure and information flow was inadequate for the complexity and volume of the new business level. He also realized he needed help to make these changes because he and his team didn't know how. They were talented and dedicated, but inexperienced operationally for a company the size they had become.
With the help of LionHeart, the company is now exceeding their former levels of customer service. The employees are working regular hours again and much more effectively. They have goals and measures to tell them quickly how the company is doing before a call from an unhappy customer surprises them. Profits remain high and employee morale is way up. The Moral of the Story Old adages like "growing too fast is a good problem to have" can lull you into ignoring your own instincts. Trust what your heart is telling you and act on its wisdom.
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LionHeart has helped many of our clients with their "good problems". We offer a complete process for assessing your organizational strengths and weaknesses, building a solid and sustainable strategic plan and alignment around it, and creating a system of operational excellence. Go our Resource section and check out Resource #3 thru #6 for more information on how we can help you.