Read on Twitter
"What got you here won't get you there..."
...is so true it's become a cliche.
So, I decided to go beyond the cliche and study why companies actually stall out and fail to scale. Ultimately, it came down to 6 factors... /1 (a thread)
...is so true it's become a cliche.
So, I decided to go beyond the cliche and study why companies actually stall out and fail to scale. Ultimately, it came down to 6 factors... /1 (a thread)
Scale Constraint #1: Unclear, uninspiring, or misaligned VISION.
In other words, nobody cares about what you're doing or why you're doing it. /2
In other words, nobody cares about what you're doing or why you're doing it. /2
Scale Constraint #2: Failing to choose or failing to execute upon the right STRATEGY.
Usually, it’s the wrong growth strategy, but it could also be the wrong product or positioning strategy. /3
Usually, it’s the wrong growth strategy, but it could also be the wrong product or positioning strategy. /3
Scale Constraint #3: Not having the right PEOPLE on the team, or having the right people in the wrong roles.
(Important: It's impossible to know if you have the "right people" until you know you have the right vision and the right strategy. Sequence matters...) 4/
(Important: It's impossible to know if you have the "right people" until you know you have the right vision and the right strategy. Sequence matters...) 4/
Scale Constraint #4: Unclear/inconsistent COMMUNICATION.
In other words, nobody knows what they should be doing, so motivated people create busywork, and lazy people do nothing. The latter is actually LESS damaging when communication is truly broken... /5
In other words, nobody knows what they should be doing, so motivated people create busywork, and lazy people do nothing. The latter is actually LESS damaging when communication is truly broken... /5
Scale Constraint #5: A lack of documented SYSTEM and processes.
"Build the rocket ship on the way up..." may sound good, but it's also a myth. Sometimes the best thing you can do when you're trying to scale is....slow...down... /6
"Build the rocket ship on the way up..." may sound good, but it's also a myth. Sometimes the best thing you can do when you're trying to scale is....slow...down... /6
Scale Constraint #6: Mismanagement of MONEY and cash flow.
I almost bankrupted my first company because I didn't know I needed to pay taxes. Seriously.
Cash is the fuel of business. Run out of it, and your business stops. Period. /6
I almost bankrupted my first company because I didn't know I needed to pay taxes. Seriously.
Cash is the fuel of business. Run out of it, and your business stops. Period. /6
So, the 6 constraints to scale are:
1) Unclear/Uninspiring Vision
2) Bad Strategy
3) Wrong People/Team
4) Poor Communication
5) Lack of Systems
6) Mismanagement of Cash
What am I missing? /7
1) Unclear/Uninspiring Vision
2) Bad Strategy
3) Wrong People/Team
4) Poor Communication
5) Lack of Systems
6) Mismanagement of Cash
What am I missing? /7
Final Tips:
- Sequence matters...address each constraint in order
- Understand the difference between relative and absolute gain
- It's better to have the right questions than the right answers.
Here's a post I just wrote if you want to go deeper: https://scalable.co/library/scale-constraints
/8
- Sequence matters...address each constraint in order
- Understand the difference between relative and absolute gain
- It's better to have the right questions than the right answers.
Here's a post I just wrote if you want to go deeper: https://scalable.co/library/scale-constraints
/8
