In Stage 5, the ideal Builder-Protector Ratio is 2:1, which means there is twice the level of confidence as caution in the organization.
This graphic shows that in Stage 5 the bar for Builders continues its growth trend, even though it is not quite as tall as in Stages 1 and 2. The organization’s confidence has strengthened again from Stage 4.
This increasing level of confidence is required to support a continued march towards the focused, intentional change the organization will need during Stage 5. It’s during this Stage that the management team matures, and the organization begins to install a Leadership Team that will eventually be responsible for the daily operations of the business.
The 2:1 ratio in Stage 5 reflects an organization that is readily embracing intentional change. The foot is back on the gas pedal to ensure the company has the momentum to grow. While the organization still needs a good number of Protectors, they are outnumbered by Builders. With the increase in confidence, the organization with a 2:1 Builder-Protector Ratio is solidly confident and able to mature proportionately across all functional areas.
This represents a continued pattern of incremental increase in confidence from Stages 3 and 4. The organization needs to safeguard itself from individual Protectors in key positions exerting too much influence and halting the advance of the organization.
Continued focus on the necessary structural elements and rules of growth will help ensure that the growing staff remains confident. Improved meeting structures and planning methods will allow the organization to initiate and complete improvements to the organization. A maturing management team will need to work in an integrated fashion to ensure company-wide goals are understood and prioritized.
One common misalignment scenario in Stage 5 is an organization that never took its foot off the gas pedal in Stage 3 or 4. In this situation, the organization has continued to embrace constant change. When such an organization reaches Stage 5, it is often battered and worn out from the exhausting pace of change. It is critical that this organization becomes focused in Stage 5 to catch up with the infrastructure that will be needed to support the company’s future growth and limit change to only what is necessary.
A second scenario may arise from the near doubling of employees during this Stage. This influx of new hires can cause a dramatic increase in organizational caution, creating a misalignment from the 2:1 ideal ratio. Continued focus of energy on creating clear structures and improving processes and systems is critical to help ensure the organization maintains its confidence. This structure begins with a new hire onboarding process that instills the company’s values, which are critical in unifying an organization with so many people.
Builder-Protector Ratio Misalignment
The CEO of a music production company has built the business from the ground up. With 72 employees and three solid revenue groups, the company is well positioned to add more work volume and continue growing with minimal disruption. However, the CEO has an interest in helping a lifelong friend who is an up-and-coming music artist. She is undeniably talented, and the company has the studio space and recording equipment, but everything else involved with launching a new artist would be completely new to them. Nobody on the team has a background in promotion or any agency contacts who could help.
Despite the pressure from the leadership team to say no, the CEO insists on pressing ahead with the new project. His company has grown, but he feels confident that it’s still capable of turning on a dime, just like when it was starting out and finding its place in the music business. Many of the newer employees are uneasy about the sudden changes and are questioning the direction of the company.
This CEO never learned how to apply the brake pedal to his organization. While his confidence was a huge advantage in the early stages of the business, it has now become a liability. Rather than taking off in an entirely new direction, he should be focusing on growth that lies within the structure that has already been built. While it’s possible he could have successfully launched a music artist when the company was small, at this point it’s far too disruptive to turn in a new direction and redirect resources to experimental pursuits.
The concepts from this article were taken from The Integration 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 58-95 employees.