HOW TO STRUCTURE A BUSINESS TO SURVIVE AND GROW

structure a business with a scalable model that can accommodate the inevitable handoffs that come with growth

I began my role as senior VP international operations, by reviewing the performance of offshore sites around the world.  Most were profitable, but a few existed only to serve large international clients who demanded  global capacity from their suppliers. The UK office employed a skeleton staff with  expenses cut to the bone.   Five people with no supervisor had been operating at a loss for years.  Closing the office was not an option—the firm could not position itself as international without a UK presence. Over a single weekend,  they implemented a scalable management system.  In one year the UK operation produced a profit while growing its top line sales by 25%—this turnaround was achieved without a supervisor.

By LSI publisher Art McNeil

Experience, as the owner of a small business contributed to my success as an advisor to some of the world’s largest corporations. Unlike many of my consulting colleagues—many of whom were Ivy League MBA Grads operating from theoretical knowledge rather than personal experience, I understood the visceral implications of risk.  Perspectives change when one’s personal wealth is on the table.

Following is the business model implemented in the aforementioned UK intervention.  Balancing startup survival needs with the potential to achieve profitable growth, it is recommended for companies that are transitioning from:

•  Idea to startup
• Entrepreneurial to growth
• One generation to the next (family businesses)
• Seller to business buyer

How to structure:

1. Clarify cultural values that are shared by a critical mass of employees
2. Identify them as power words (referred to as suitcases)
3. Conduct a “rite of passage” experience where employees place their personal (core) values into the three suitcases (cultural-values)—personal values are ritually transformed into a foundation for team-building  
4. Establish a values-centered NORTH STAR (brand promise)—identify vision as the future tense of values
5. Focus a vision of the preferred future—originating from a shared platform of cultural-values and guided by the corporate North Star (brand promise).
6. Develop and practice a differentiating elevator speech where employees deliver their own version of:

              “because we believe in (cultural values) we differentiate ourselves by delivering  (the North star aka brand promise).  What that means to you is…(what the employee hopes to accomplish)

       7. Develop an ethics platform that established clear, non negotiable behavioral boundaries for each cultural-value

       8. Train employees to skillfully recognize each other for making cultural-value contributions

       9. Train managers with direct reports to conduct immediate performance redirection sessions when ethics are violated

       10. Standardize a supervisory protocol to be used by everybody with direct reports”

• Monitoring results
• Coaching
• Chairing meetings
• Inducting new employees

      11. Establish strategic processes rather than departments.  Four fundamental processes are:

• How we get and retain customers
• How we serve customers
• How we support the partner chain (traditional staff functions)
• How we forward think (strategy, budgeting, cash flow management, R&D)

     12. Appoint a designated worrier (owner) for each strategic process, assign a process team then  Introduce  a continuous improvement system:

• In the UK one person was assigned reception/clerical responsibilities while the other four accepted ownership of a strategic process.  They met once a week (for one hour) to review opportunities and eliminate waste and rework.  Each owner chaired their own section—the other three contributed as the process team.  A piece of butcher paper was hung in the cubicle of each owner.  As waste/rework issues or opportunities were identified, the originator placed a “post it note” summary on the appropriate owner’s butcher paper.  People stopped interrupting each other and started operating as a team.  I overheard a telephobne conversation where the receptionist said, ” I’ll refer your request  to our foreward thinking team”.  They transitioned into a functional team with the capacity of unlimited growth.

 This process is outlined in a complimentary e book Secure Corporate Viability by Creating Transferable Wealth and Wisdom