How to Grow Your Business

At the initiative of the Prague University of Economics, jointly with the Warsaw and the Munich Ludwig Maximilian University for 10 years conducted research in which it was determined that, the development process of any company is cyclical and each cycle consists of 7 stages.

STAGE 0 begins at birth the ideas. At this, stage a team of associates and the share of future profits. Rarely, the allocation of responsibilities of enforcement officers, because all are equal and all “chiefs”.

PHASE I lasts up to 3 months from the date of registration of the company. In a state of euphoria, team is eager to achieve success. And the owner is facing the first managerial challenge – the portfolio divided, and no one to work. Not delaying the process, he decides to find someone who will go with your customer base and then move from a dead point. So, the owner rushes to the extreme and the company appears expensive “star” with the customer base and excellent communication skills, but without the slightest desire to work. It is correct, where have you seen that “stars” work? Alas, the owner of this fact is not, known. And when they learned the budget was already exhausted.

PHASE II lasts from the 3-rd to the 9-th month of the life of the company. Pay dearly for the “star” of the seller and not getting the expected result, the owner throws in another extreme – in cheap employees with no experience. “Stars” continue to Shine is important, and “newcomers” in the meantime, work is involved, make mistakes, learn, and after 6 months they have enabled the skills and motivation to work. Growing their qualifications, cost and value, and they begin to look at the stars and wonder: “why do “stars” do nothing but receive many times more!” On this basis, in the period between stages, i.e. from the 9-th to the 12-th month, in the company of the unfolding intrigues and conflicts. In order to resolve the situation, the owner picks a team of HR specialist. The company moves to the next stage, if it manages to resolve the conflict and keep the team key players. Otherwise ceases to exist.

PHASE III – the first year of life of the company. Financial results yet, but already made the difficult mistakes and learned important lessons; the team have common interests, and begins to work the corporate culture. After enduring the storm of the transition period, the owner with the utmost pomp celebrating the first small victory. And from that moment the company starts to develop actively. The strategy of a breakthrough, she acquires a significant number of clients. A special role at this phase is devoted to sellers who are looking for clients, and recruiters who are looking for sellers.

STAGE IV – the second year of life are. Characterized by the transition from quantitative to qualitative work. Capturing part of the market, the company presses the pause. The owner and the sellers already think about profitability. Appears focus on key customers, products and services developed in the first phase, the client base is carefully processed.

STAGE V – in the third year of life, the company continues its qualitative development. Convened strategic session, which first raised the question about the organizational structure and the need to visualize the structure, processes and functions. These questions become relevant in the first place, because of the duplication of powers. Accustomed to functional universals, the staff continue to do their work, i.e. to do everything! At the same time, of course, not responsible for the results. From the 3rd to 5th year, the company operates as part of a defensive strategy. Hold both external and internal positions. During this period, the company stabilizers most, implemented personnel management system – from adaptation to evaluation. Special attention is. Paid to the functionality and optimization of business processes.

STAGE VI –the fifth year. The owner goes on sabbatical, and on the role of the main leader is. Appointed – the complete opposite of the owner’s management style. For example, the owner-Resultatives, when well spoken, and diplomatic reports of the company in the management of leader-Democrat. Or bring in some new blood, trust management leader-Father. If the owner-father decides that the “children” get up to mischief, invites to the team leader-Tyrant. And so on. The company’s new management style can be a serious problem. A new type of Manager begins to emerge not. Earlier than one month from the date of inauguration. But from the first days in the team there are “his people”. The system informed the Desk of the corporate culture starts to break down because “their” staff does not seek to maintain the principles and enter into the established framework. The old-timers feel abandoned and betrayed. Some leave immediately, but who remain fall into a state of deep resentment, slow down processes and create conflict situations. 3-6 months later, rested the owner “comes to visit” and the state of it is shocking. He dismisses would-be leader and tries to rebuild the old team. The former, despite the resentment and distrust returned. The role of a new leader is appointed to represent are an old team, similar style of management style of the owner. Thus, the corporate culture only slightly modified. The company freezes and begins the process of stabilization, which may last from 2 to 4 years.

STAGE VII – more than 7 years. As part of a strategy to reduce or change the types of activities the owner sells the company or initiates the opening of new areas, subsidiaries. During this period, often develop holdings. The development of new projects involving, as a rule, those once offended the old-timers.


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