There is no owner’s manual on how to run a growing business and there is no job description that defines how an MD can best grow a company. But MDs who are able to guide their businesses through different stages of growth do typically share a common trait: they understand how they can contribute and how they can build a team around them to achieve that growth.
“Growing” companies are those that are no longer in the start-up phase but haven’t yet become fully established businesses. Growing businesses are still evolving month by month, and must continue to adapt to quickly changing circumstances surrounding the company.
The dynamics of a growing company require the MD to play a different role. In a start-up, the MD is usually the jack of all trades, doing everything they can to grow the business into a sustainable company and prove their business model. Growth originates from the MD, rather than around the MD.
In an established consistently performing company, the MD has a clear line of sight into business units and organisational accountabilities. Each of those key managers and units likely has the capability to operate independently based on established processes. Growth comes from investing capital and resources in specific opportunities. The MD’s job is to set priorities, approve decisions, and oversee management.
The growing company is different. The business is large enough that the MD is no longer aware of every action and decision that takes place, but they have not yet established organisational processes or even clear accountabilities. The MD no longer has the ability to put the business on their shoulders. Growth requires a team of people to deliver in a well coordinated way.
Working with such MDs who are building businesses, I find that the key challenge for them is building a team that can create the same growth as a nimble start-up. They can no longer do it alone and create the same growth rate that a smaller business does. They find themselves looking around the room at their team and piecing together an organisation structure that leverages each of the individuals’ strengths to collectively create the same rapid growth of a start-up. However it’s not easy. When businesses are growing at 30% to 40% or more, they are a different business at the end of the year than they were at the beginning. The MD needs to stay on top of this evolution and build a structure that achieves the growth. In many cases, their own role will change day-to-day as they build a team around them.
