In Stage 6, the ideal Builder-Protector Ratio is 3:1, which means there is three times the level of confidence as caution in the organization.
This graphic shows that in Stage 6 the portion of Builders has returned to the same level as in Stage 2, indicating a very confident organization that is able to mature proportionately across all functional areas.
The expanding number of employees drives an ever-increasing level of complexity, which requires the parallel support of an increasing level of confidence. Not since Stage 2 has the organization been so optimistic about its future and confident in its leadership. The willingness to pursue new market opportunities has returned, as has the ability to absorb necessary change.
The Leadership Team is continuing to mature and expand its operational responsibilities. It now oversees an organization with strong departments that manage integrated budgeting and planning methods. A refreshed business model informs the vision, strategy, and operational structures of the company. Leadership’s communication through effective meetings ensures the staff have clear expectations and understand where the company is headed. The recruiting and onboarding process becomes increasingly important as the number of people in the company grows by fifty percent.
Organizations that reach Stage 6 without an integrated, professional Management Team and a maturing Leadership Team are challenged to reach the level of confidence needed to successfully navigate this Stage. The lack of a strong Management Team results in an organization that is uncertain about the company’s future.
Leadership also needs to communicate a clear and compelling vision for the company, or they will fail to gain enough buy-in from the staff to maintain high morale. New hires should be immersed in company values and should understand the company’s vision and plan, so they feel connected to the company’s success.
With a dominant Builder mentality, the accelerator is firmly pressed. In order to maintain momentum, the organization needs to safeguard itself against individual Protectors in key positions exerting too much influence and halting progress.
Builder-Protector Ratio Misalignment
As a non-profit organization, a disaster relief company relies completely on donations and fundraising to finance its day-to-day operations. The company has grown to 142 employees when its long-standing CEO decides to retire. The new CEO is ambitious and unafraid of change. With the backing of the Board, she proposes a change to their annual fundraiser. This major event drives more than 80% of their annual funds, but donations have been stagnant for the past three years. In order to galvanize a new base of donors, the CEO wants to try live streaming the event and focusing on social media channels to advertise and promote it.
Despite her energy and enthusiasm, the Leadership Team is reluctant to move ahead with the changes. The VP of Marketing is especially averse to the idea of taking such a radical departure from the way they’ve always done things. What if they fail to attract new donors and lose the loyal base they’ve had for years? A company poll shows that the majority of employees feel the same way. People are attached to the company’s traditions and the risk of doing things differently outweighs the possibility of new growth.
The CEO is in a challenging situation. Not only does her Leadership Team hold a Protector mentality, but the majority of the staff do as well. This is common when a company enters Stage 6, because typically new employees are joining what they perceive to be a stable company that can provide them with adequate compensation for a fairly predictable job. Such a mindset does not readily embrace change and is reluctant to “rock the boat.” The organization’s financial challenges are real, however, and must be addressed if it’s going to continue to provide the same quality and scope of disaster-relief services to its community.
The concepts from this article were taken from The Strategic Stage: Organizational ReWilding Rules for Business Growth. Available through The ReWild Group and Amazon, the book explores this and other concepts in-depth while providing illustrations to help business leaders incorporate the ideas into their organizations. Get your copy today to learn the rules for growth for companies with 96-160 employees.