Think S for Growth

I’m no academic nor an economist but I do understand how some models and theories can be used to illustrate real world issues.

So much advice is around saying that leaders need to work on their business, not just in it. LinkedIn is full of this mantra. Are we doing this though, and if so, what exactly are we thinking about?

Lately I have seen numerous examples where apparently successful organisations haven’t taken that step back to consider what lies ahead. What infrastructure needs are coming up, how much growth do we have, is it time to pivot? Basic questions but ones we need to answer. 

Now before those in the for purpose space switch off thinking this is some sort of capitalist crusade, think again. Most of the examples I’ve seen lately are within your area. Small, local voluntary ones as well as large national organisations.

So things are looking good? 

Excellent, now let me introduce you to my friend the S curve. This squiggly line is a great tool for strategic thinking, and best of all, you don’t really have to worry about the numbers on it.

This curve is used in many ways but at its heart, it’s a very simple concept. It’s all about growth. When you start off, your growth is usually slow, whether it is sales, clients, members or people supported (A). Growth then picks up and the graph shoots upwards (B). Sooner or later though, your growth will start to slow down as new sales or people become harder to find or engage with (C). Eventually most things finish growing and then you can start to lose business (D). Newer products or services come into the market and your client base starts to move on. This is normal and generic. An organisation’s longevity often relies on bringing onboard new “s”. 

Of course the speed, size and length of growth vary greatly between products and organisations.

Where would you place your organisation on this graph? Forget the numbers or what the Y axis represents, just focus on the picture and pick a spot.

A

Do we see growth picking up and when do we think we’ll see a sharp upturn (or will we)?

If the growth comes, what infrastructure will we need to put in place? More staff, more administration, compliance management, new vehicles or plant?

B

How much longer will this good growth occur?

Will we need increased infrastructure, and how soon?

At what point should we be starting to look at ‘what next’?

C

Do we agree that our growth is going to plateau off?

How much time do we think we have before numbers start to decrease?

If we stay at this level or start to decrease, what are the implications on resourcing?

What can we start working on now to replace this S?

D

What new S can we introduce now?

Is our infrastructure now fit for purpose, and if so, for how long?

Do we maintain a decreasing product/service or should we be phasing it out?

Obviously this is all very simplified, but hopefully it gives you an idea about some of the things you need to think about, whatever stage of growth you’re at. There’s plenty of information out there about S curves. 

Sing out if you want to run your ideas on this topic past a sounding board, I’m happy to sense check your thinking. 

It will never be everything

I had another fantastic coffee catch up today – having been head down for three years, I really did miss these mental stimulation opportunities. One of the many topics we discussed was AI and once again I was reminded that no matter how clever it is, it definitely has limitations.

AI is really an amazing tool and the potential seems unlimited. Still, while I might marvel about what AI can do, it will never fill my cup like talking to an wonderful human being.

Sure it can draft up a good business case, but its why will never be authentically human. Agreeing and disagreeing based on values and critical thinking, the real interest in the person behind the words and lifting up from the topics to consider the ‘world’ view. These things matter.

Sure it could provide the words, but the personal touch won’t be there.

A chat I had with a CEO a while back summarised where AI can really change our lives. By removing the admin, research and systems, it will free us to meaningfully engage with each other.

Like every tool, we need to ensure AI enhances humanity, not negate it.

We need to end fragmentation

In case you didn’t notice, it’s hard out there. Increasing number of organisations applying for a smaller pool of donations. New contracts are almost unheard of while compliance is a never ending beast.

If we want a thriving charitable sector, we need to be smarter. We can’t keep on setting up new organisations in the belief that our purpose is so just that money will simply appear. It won’t.

We need genuine collaboration towards shared goals.

  • Organisational interests need to take a back seat in our drive to achieve a common purpose.
  • We need to look for partners outside of our specific sector to broaden our skills and resource base.
  • We need to collaborate bravely to break down barriers and change systems

We need to competing over funding

  • We have to accept that there will only be a certain level of funding in New Zealand. Duplicating our services simply dilutes that pool.
  • We need to recognise the potential of business in supporting shared goals. This relies on meaningful relationships not simply expecting never ending donations.
  • Working with other organisations to allow services to be delivered with economy of scale.

We need to have contentious conversations

  • There is a place for joint ventures and mergers. We need to look past our own brands and ‘local’ solutions if we want to make a significant difference to our communities.
  • Local solutions are a valid option but we still need to look for opportunities to share or leverage infrastructure. Duplicated infrastructure dilutes funding and diverts our focus from achieving our purpose.

My cup runs over…

Coffee and a chat is a great foundation for discovery and learning. A gentle 30 minute walk on a clear frosty morning makes to doubly so.

Yesterday I had the pleasure of meeting a small business owner and finding out more about her enterprise. What I loved was how simple it was and yet it ticked all the boxes.

Clearly identified customer base – one that genuinely needs the service being offered. Building a business to solve a customer’s problem…. business 101. Bonus points for the fact it is helping the community.

Fully understood her cost structure, and focused on what was profitable. Not growth for growths sake.

Listening to her, she clearly cared for her team but at the same time, you could tell there were expectations on output (quality and quantity). Call me old fashioned but isn’t this how it’s meant to be?

Talking of her team, she cleverly built the working day around school hours. There is a big pool of very talented people who are at home with kids. Tapping into this resource is smart business – and again helps out our community.

Yesterday was a day when chatting over coffee filled my cup.Activate to view larger image,

Who needs a sounding board?

  • Owner operators or founders of an established SME
  • If you carry responsibility for people, cashflow, and reputation
  • Anyone who feels busy, stretched, or isolated at times
  • If you need clear thinking, not theory or hype

It works well for purposeful leaders. It can be a hard and lonely place when passion and management collide. I can relate; I’ve been there.

When you need someone who can listen well, think clearly, and stay grounded, you need is a sounding board.

You’re making a decision? Why?

When trying to find solutions, we’re told to first understand the problem.

Many of the decisions we make as leaders, and as people, don’t stem from what we see as a problem. We don’t sit and try and analyse it, we just know we have to make a decision and that’s what we do.

Sometimes we sense check the decision we’ve made – and as a self-promotional plug, a sounding board is a great way to do that.

There’s a simple question we don’t often ask ourselves, one that if we asked right at the beginning might channel our thinking.

Why do we have to make a decision?

Seems obvious, but is it? 

Is there a problem you’re trying to solve – if so, what is the problem?

Why are you exploring new opportunities – do you understand why you want to grow?

Sense checking is more than seeing if the solution will work. It’s understanding why you need a solution, and only then can you help with decision.

Just Explore

In an environment where everyone is trying to give you advice, it can be reassuring to sit down with a sounding board and just explore.

This what I do….

I’m not a coach or advisor; I’m not an expert on some American management model that is apparently the answer to every issue, and I certainly don’t think I know more than you.

I listen, I question, I sense check and I wonder aloud.

Advisory Boards

We see that advisory boards are becoming more common in the commercial space, especially with SME, but I haven’t noticed this flowing through into the for-purpose sector.

Advisory boards are set up to provide guidance and expertise to an organisation on a specific issue or strategy, not the business-as-usual governance, compliance and decision making that boards of trustees/directors are usually involved with.

A great trustee may not be the best person to advise on a new initiative. Their role is to help set the scene through strategic planning and then engage the appropriate resource.

If we want to see significant change, we need to engage the right people to advise us.

If two trusts are talking about merging services, an advisory board of people who have experience in mergers should be able to provide practical advice to steer the journey.

Want to start a social enterprise to generate funds? A board of say three entrepreneurs with experience in start-ups will have a wealth of knowledge to share.

These people may be very willing to share their advice on an area they know a lot about, for a defined period of time, rather than taking up a permanent trustee/director role.

So why don’t we use them?

Want to know more, just get in touch

Veni, vidi, adiuvi

After yet again seeing the term veni, vidi, vici (I came, I saw, I conquered) pop up in a movie, I thought I’d shake up ol’ Julius’s phrase.

In business we should be looking to conquer issues – and no, not our competitors. Grow the pie instead of trying to scoff it all.

From an advisory perspective though, the client might conquer issues, but we don’t. So, what happens when we sit down with clients and identify (see) their issues and opportunities?

We support….

Veni, vidi, adiuvi

I came, I saw, I supported

Integrity

Too often people know the right path to follow, but what is right may not be easy, may not be as profitable or sometimes isn’t popular. It is however right.

The difference between knowing the right path and taking the right path is often integrity.

Integrity isn’t always easy, doesn’t always generate the most money and doesn’t guarantee popularity.

Integrity does matter though.

Never compromise your integrity, the price you pay is never worth it.

Remember, you become stronger whenever integrity is your motivation.