The Non-Negotiable Rules are a powerful dimension within the Stages of Growth. They define the laws that a business must follow in order to be successful. The fact is that every natural system, whether it is a forest or a commercial business, succeeds by aligning itself to fundamental natural laws that establish order and balance.
Leadership
Leadership is the guiding body of the organization. As the company grows, the Non-Negotiable Rules and structure of its Leadership must change and evolve as well.
In Stages 1 and 2 (1-19 employees), the Leadership in a business is owner centric. During this stage, the organization revolves around the owner, and the business is extremely dependent on the one leader. At this point in the business’s growth, the leader must command the team and inspire employees with a clear vision and mission.
As a company grows into Stage 3, it needs to shift to an enterprise-centric organization. An enterprise-centric business is one that can stand apart from the owner; its Leadership is stronger because it has more depth. No matter how capable, one person is simply not effective as the sole leader once the company grows past 20 employees. Leadership at Stage 3 needs to begin delegating authority and responsibility to three to five capable managers and regularly coach them. This is when the organization graduates from being solely CEO-led and blossoms into being leadership-led.
Beyond Stage 3, as the company continues to grow, the need for depth of Leadership also continues to grow. The goal must be that supervisors are taught, mentored, and challenged to become responsible, capable managers. It’s in these Stages that managers begin to truly own functional areas of the business, which frees up the CEO to train a successor and continue to set the vision for the organization.
Leadership is often misunderstood as ownership or control. In reality, strong Leaders have the ability to delegate and grow managers. Growing managers help the company evolve from owner-centric to enterprise-centric; without this, a company cannot effectively grow.
Effective leadership at a growing company, then, means knowing when and how to delegate. Delegation is often mistaken for a weakness or perhaps conjures fear in the heart of a small business owner who may have trouble truly “letting go” of vision and responsibility. However, the ability to delegate is a crucial tool for a company to be successful.
Discover the Rules for Your Business’s Stage of Growth
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