I’m excited about this series of blogs I’m putting together over the next several weeks. The first topic has been fundamental to me over my career. I’ve used the term “Operating System” very loosely at times. With other leaders and employees, during interviews, and in planning sessions, it is a term I’ve used often to emphasize the way I work, plan, and lead. Having watched a racing chart recently showing the evolution of Operating Systems for Personal Computers, I realized I needed to consistently add another word to adjust the phrase to the more commonly used term “Business Operating System” for more clarity. I wonder how often people were perplexed when I used the “OS” term and their thoughts immediately went to computers. Or maybe it’s just my background that makes me more aware of that distinction.
Entrepreneurs often (not always) begin with an idea or a concept – a product or a service they believe will have strong customer demand. There is not much long-term focus for most. It is about getting off the ground. More often than not, sadly, it *doesn’t* work out, but when it does, customers, revenue, growth, and success all occur. Then what? More of the same, only faster? What happens when a competitor brings the latest “it” thing to market with more features or better service?
I had a mentor who suggested that business growth follows a logarithmic scale. It is the same distance (akin to effort) going from 1->10 and then 10->100 (you can think either in terms of revenue or customers). You must lay the groundwork and gain those 1st few customers to allow for more growth. Momentum will eventually set in (word-of-mouth, reinvestment, advertising, successes) and help with further acceleration (most successful companies have exponential growth at some point, though not usually sustainable).
Having gone through this experience myself, I can relate. There is hard work, planning, building, networking, having a sense of urgency and some healthy fear over starting a company. Once you’re past that startup phase, what’s next?
I’ve had the chance to work and consult with a variety of companies in very disparate sectors over my career. Many have been what I would classify as mid-sized companies (I count around 10 in total). They were well past the initial startup point. Most had 50+ employees and had existed for 10+ years with a solid base of customers. I’ve been fortunate to witness many of these organization’s leaders realize the need to adapt and pivot how they lead and oversee the company. The name and purpose are the same, but the business has evolved from what it once was. It now has a maturity and scale that requires a different approach. What took them from 1->10 isn’t the same as what is needed to move them from 10->100. So what’s missing?
A few of these companies and leaders knew the gap(s). The organization had grown too large for one person to oversee all aspects of the business. They couldn’t clearly and successfully articulate their vision to everyone. A ceiling was reached. Without any change, the company’s viability would be at risk. Three of those organizations decided to sell since they had achieved the owner’s goal(s). At the remaining companies, new people were hired to support new products, services, and markets. It was organic growth at its finest. Sales and operations remained the focus. The question I saw many of those leaders ask – was it cohesive and sustainable? The answer only occasionally was “yes”.
If not, what was needed to ensure success? What is the longer-term plan for the company? How do you develop it? How do you communicate it? How do you execute it? And it’s not just one or two people any longer who need to be aligned to ensure success. It requires leadership. It requires teams. It requires structure. It requires a Business Operating System.
And for most, since going back to 1 isn’t an option, 100 (or 1000) looks very appealing.
Stay Tuned.