5 competencies to scale a business [Video]
By email@example.com in Blog
Recently, Shane Spiers with Summit Leader, asked me to share my insights as a business growth expert with his audience.
Here are 5 competencies leaders need to scale a business:
1. People: Is every team member happy & engaged and would you rehire them?
Get the right people on your bus, in the right seats, doing the right things, right! Sounds easy, doesn’t it? NOT! It is one of the most challenging aspects of scaling a business.
Jim Collins, in Good to Great, states: start with WHO, not WHAT! If you have the right WHO, there is almost no WHAT you can’t accomplish. If you have the right WHAT, but not the right WHO, you will struggle.
Focus on hiring A-players to win by using a proven hiring system!
2. Strategy: Is your strategy driving sustainable growth?
Can you state you company’s key to making money in one simple phrase?
A streamlined underlying strategy, that is easy to understand, aligns your team so they make better decisions.
3. Execution: Are all processes running without drama & driving leading-edge profitability?
Execution determines how well you convert revenue into profit.
Great execution in business requires 3 disciplines:
- Priorities: Does every team member know their # 1 priority? Does it align with the company priorities? I don’t care how hard someone is working. If they are working on the wrong thing, what good is it? Lack of proper priorities creates dissipation of effort.
- Metrics: If you are not measuring it, can you improve it? Numbers is the language of business. EVERYTHING that you want to improve MUST be measured!
- Meeting rhythms: As CEO it is impossible to over communicate! Much subpar team performance is due to poor communication. Verne Harnish, in Chapter 8 of Mastering the Rockefeller Habits explains how to implement a meeting rhythm that will maximize communication and minimize time spent in meetings.
4. Cash: Do you have consistent sources of cash to fuel growth?
Growth sucks cash. Cash is oxygen for the business. Run out of money; it’s game over!
There are many hidden areas within, where a company can find additional cash. I constantly help business owners locate new sources of cash within their businesses.
5. Leadership: Everything rises and falls on leadership.
Leadership is a lid to a business – it will never outgrow the leadership ability of its executives. We never arrive. We must continuously be intentional about growing our leadership skills.
To sustainability grow any organization, a leader needs to learn how to master these 5 key areas in their business.