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Managing Growth

0. Managing Growth. Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado. Today’s Agenda – Managing Growth. HiveLive What problems are caused by growth? How to build a management team? How do you create a culture? How do you communicate?. Next Week.

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Managing Growth

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  1. 0 Managing Growth Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado Managing Growth

  2. Today’s Agenda – Managing Growth • HiveLive • What problems are caused by growth? • How to build a management team? • How do you create a culture? • How do you communicate? Managing Growth

  3. Next Week • Feasibility Plan presentation • 7 minutes present • 3 minutes questions • Get there early to load slides • Hand-in • Part III Venture Analysis DECK format ~ 17 slides • Appendix • Parts I & II • Other opportunities considered – pros & cons • Customer surveys – who talked to & conclusions • Competitive matrix • Profitability assumptions Managing Growth

  4. Growth Issues • Management team must evolve • Systems & controls in place before problems develop • Founder capabilities & desire • Funding - depends on how well execute Managing Growth

  5. Managing Growth is Structured Chaos • Uncertain – future is not clear • Unpredictable – trial & error • Inefficient – make mistakes • Increasing levels of complexity • Can’t make major mistakes “Structured Chaos”, Kathleen Eisenhardt Managing Growth

  6. 0 What Problems Are Caused by Growth? • Too many opportunities - venture strays from goals • Complexity • Lack of controls: costs & cash flow • Communication barriers between departments & people • Training & employee development get little attention • Bottlenecks in decision making created by founder’s failure to delegate • Leads to stress & burnout • Covers up • Poor planning • Wasted resources • Weak management, but not for long Managing Growth

  7. 0 How Build a Management Team? • What determines your management team? • Recruiting • Large company managers • Peter Principal in reverse - Stolze’s Law • Hiring and firing • Compensation • Team needs to evolve • Where go for help? Managing Growth

  8. 0 How Do You Create a Culture? • Shared set of attitudes, beliefs and behavior • Can you design your culture? • In your image (whether you want it or not) • Oh yes, what about ………. Managing Growth

  9. 0 How Do You Walk the Talk? • How you treat employees, customers, investors • What type of employees do you hire • How hard you work • How make decisions • What do you do when things go wrong? • What do you do when things go right? • Little things Managing Growth

  10. 0 Communications • What is going on here? • 3 Levels • Organized • Informal • Style Managing Growth

  11. 0 Organized Communications • Organized • Organization charts, policies • Newsletters, e-mail • Meetings “Device to substitute the pleasures of companionship for the loneliness of toil and dreariness of endless debate.” “Committees are a group of the unfit, appointed by the unwilling to do the unnecessary.” • Your management approach Managing Growth

  12. 0 Informal Communication • Two kinds of information • Gossip and rumor • Information that can’t or won’t go through formal channels • 70% of communication - can not ignore • What can an entrepreneur do? • Listen • Walk about • Understand the language • Open contacts to outside world Managing Growth

  13. 0 Style • Character • Essence of you Managing Growth

  14. 0 CCG: Decided Before Started • Everyone own shares in company • Everyone has access to information on company situation • Financial: Income Statement, Cash Flow • Orders & sales • Customer problems: delivery, quality • Everyone has access to founders • Door is always open? • Walk about • Single status – all employees have same benefits Managing Growth

  15. 0 How Cultivate Innovation? • Relish ambiguity • Tolerance of the impractical • Take calculated risks • Accept that mistakes will happen • Conflict is good • Respond rapidly to change • Focus on ends, not means “There isn’t any business that a Harvard MBA cannot analyze out to existence.” George Doriot, father of US venture capital and Harvard prof. Managing Growth

  16. Structured Chaos by Eisenhardt • There are three areas of focus: • Current business: Improvisation • Future business: Experimentation • Link entrepreneurial strategies to past, present and future together: Patching • They are certainly appropriate for high growth and high tech businesses where: • High growth can mitigate mistakes that companies might make • Plentiful venture capital to fund new ventures and the accompanying pressure to quickly do deals results in resources to experiment and improvise • Suspension of requirement to make a profit encourages experimentation in real time Managing Growth

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