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Why Your Company is NOT Growing

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Photo Credit: Brie Odom-Mabey; Unsplash

Stuck in the "Mud"

Is your company stuck in a production rut that you can't get out of?

Are you wondering why your team can't move production forward like they used to?

There could be a number of reasons why you are not seeing your production increase.

So, let's look at some common reasons why a company can't grow or stops growing.

7 Reasons Why Companies DON'T Grow

Please note that this is not an exhaustive list.

Also, this list assumes you have quality products and services that are solving a problem for your customers/clients or you are creating desirable outcomes that they want.

If you don't then you can add that to this list as well.

  1. Bad or No Processes: Many businesses struggle with inefficiencies and bottlenecks in their processes. In some cases there are no processes and they don't know how to identify issues and implement changes to make their operations smoother and more efficient.
  2. Poor Technology Adoption: Adopting new technologies can help businesses stay competitive and improve their operations. However, they often buy technologies before they identify the problems they are trying to solve.
  3. No Scalability: As a business grows, it can become more challenging to manage operations effectively. Typically there are no repeatable and accountable processes to scale their operations and manage risks.
  4. Lack of Financial Management: Controlling costs is essential for any business. You need to identify areas where the company can reduce costs and implement cost-saving measures without sacrificing quality or customer service.
  5. Bad Customer Experience: Providing a great customer experience is critical for any business. Most companies don't try to see things from their customer's perspective so they can't improve their customer service operations. They just take the easy way out to check things off the list. A company must also be able to capture and use customer feedback to drive improvements.
  6. Don't Hire or Manage Employees Well: Hiring and managing employees is one of the most significant parts of any business operation. I'll come back to this later. You need to know how to attract and retain top talent, how to create a positive work culture, and how to manage employee performance.
  7. Ineffective Marketing and Sales: Growing a business requires effective marketing and sales strategies. Developing and executing effective marketing and sales plans that drive growth are often done poorly. In addition, most companies don't measure the data from these strategies so that they know how to adapt.

Let's Reprioritize

I've arranged the above list in order that companies typically prioritize their audit and change management processes.

However, I'm going to reprioritize the list to help me explain one of the most important reasons companies don't grow.

Again this is assuming you have great products and services nailed down already.

  1. Don't Hire or Manage Employees Well
  2. Lack of Financial Management
  3. No Scalability
  4. Bad or No Processes
  5. Poor Technology Adoption
  6. Ineffective Marketing and Sales
  7. Bad Customer Experience

The reason I prioritized the list this way is because if you don't get the first thing on the list right then you CAN'T correct the rest of the issues. No matter how hard you try.

Why?

Your company is only as good as your people are.

Let's Focus

I believe companies would agree that they need good people and they need to be managed well.

But I don't believe they really know how to do this and just how important it really is to do well.

Personnel development takes time but it's worth it!

"If you just focus on filling your positions with anyone that fits the job description, you will regret it."

Why?

Anyone you bring into your company should be sold out, to live out your core values. If they are not then they will cause your company to self-destruct.

It may be a slow self-destruction process, which is even worse, and it will cause deep damage to your company's culture and production.

On the flip side if you hire and manage well then you get people who...

  • Fit your core values & love being on your team
  • Know the mission
  • Are able to create great plans & processes
  • Have the integrity to implement & execute the plans
  • Will increase your productivity

Your Challenge

Ok, so now the question turns to "How do we do this?"

Here is a short list to master:

  1. Set Clear Expectations - Before, during and after the hiring process.
  2. Lead Well - Leaders must set a strong vision & mission then model it.
  3. Provide Support - Budget, time, encouragement & development.

Don't take the easy way out by making quick hires and then leave them to figure out how to succeed on their own.

This will create bad culture and fragmented systems that will destroy your company.

Instead, be intentional about hiring the best people possible and invest quality time into developing them.

I promise if you do this well then your company WILL grow!

Enjoy the process!

Grow more. Risk Less

 

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