How to build scalability into any organization

In a January 23rd post earlier this year, I briefly mentioned the Horizon 1-2-3 framework originally developed by Mehrdad Baghai, Stephen Coley, and David White, who authored The Alchemy of Growth: Practical Insights for Building the Enduring Enterprise. In it they established a view that companies that are successful in the long term have growth initiatives in three stages. Subsequently, many consulting organizations worldwide have used dozens of frameworks over the years to analyze the trends which impede their clients’ ability to grow.

Allow me to summarize for you what I’ve been seeing as the #1 culprit for limiting the growth of organizations worldwide.

Premise; The H1-2-3 framework is built around the point of view that to sustain growth, a company must maintain a continuous pipeline of business-building initiatives. Companies considered sustainable & scalable are characterized by their ability to create new business opportunities by innovating from within their core business ares whilst building new off-shoots at the same time.

Challenge; With the limited resources that the majority of modern-day companies face today, where can you find the time, resources & funding to innovate?

Solution; Identify within your organization who’s ready to operate at each Horizon, and then stimulate their development by holding them accountable.

  • (H1) is the work resulting in more consistently effecting change through improving and extending present operations (routines and habits)
    • Who in your organization is working at this day-to-day level?
      • Are they the right people / profile?
    • What monthly gatherings are you promoting to review & improve on the recently past activities?
      • How do (what proof are you collecting) these gatherings benefit your future activities, both immediate & mid-term?
  • (H2) is empowering the team to ask themselves how their daily/weekly activities & focus facilitate the creation of new opportunities
    • Who in your team is ready to step-up to the next level?
    • What weekly questioning and periodic structured pulse checks are you committed to?
    • How are you fostering increased risk taking & the capability of the team in dealing with a greater degree of uncertainty & adversity?
  • (H3) is where futures must be imagined, researched and developed.
    • Who in your organization is passionate & skilled at seeding options today for the future?
    • What is the required business acumen for understanding the related research, pilot projects, proof of concepts, etc you’ll need to succeed & innovate?
    • How are you going to measure the practical implementation of the same, both immediately & on a continual basis?

Results; A client of mine is currently putting this model into effective use. The Managing Director is a visionary and he needed to break himself away from the daily routines that were keeping him from affecting the broader & longer term results of his organization. Last year he asked one of his next-line management to step-up & shadow his responsibilities. After one quarter, this 1st line executive had gained deeper knowledge & understanding of what it took to “play at the next level”.

Having also experienced professional growth & personal development, he was tasked to find someone one level down & do the same exercise. At the same time he was sharing with his immediate management colleagues the direct & indirect benefits of this experience. Each quarter the Managing Director rotated his direct reports through this process. Whilst he gradually freed himself to a level at which he significantly impacted the broader scope he desired, this exercise permeated throughout the organization giving more voice to many more layers of management & personnel in general.

Whether you’re staffing levels are 5, 10, 50, 100 or 1,000, what can you learn from this exercise? What are you holding onto that you should let go of? Who’s growth are you debilitating by continuing to carry on the way you do today?

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