To grow a business effectively, it takes more than hiring additional employees and entering into new markets. As an organization scales, it is often met with a variety of new challenges that need to be navigated. These challenges commonly come in the form of internal communication struggles and departments that naturally become disconnected from overarching company objectives.
However, there are ways that these issues can be overcome and there are great examples of well-known organizations who have done the same.
The Roadblocks to Scaling a Business
Scaling a business isn't just about finding a way to increase revenue. There is always a cost associated with growth, and many times, this comes in the form of increased expenditure on resources used to create more efficiency internally, as well as making an effort to create a cohesive company culture.
While every business is different, there are some common roadblocks that organizations will come across as they grow:
Communication Breakdowns
Communication is the foundation on which all successful companies are built. But it's also one of the hardest things to “get right” in organizations. It's common as businesses grow to lose focus on the quality and frequency of their communications across multiple departments. Many times this leads to information silos developing, where certain groups are included in mission-critical elements of the business while others are left out of the loop.
When this situation develops, it can lead to missed deadlines and a lack of essential collaboration between various teams. It's no different how in home renovation projects, workers need to know the status of various projects being completed and when. For example, if someone was working on a kitchen remodel project but didn't know the status of electrical or plumbing, it could lead to large mistakes or delays in the renovation.
Decreased Trust
When organizations scale, they also have to deal with a potential loss of community or shared purpose from their employees. If this happens, it can often lead to a certain amount of distrust from staff members who feel they're only a number and never included in the big-picture vision of the organization.
If mistrust starts to grow among groups of employees, it will often create a certain level of toxicity that can make acquiring and retaining new staff members very difficult.
Company Misalignment
It's important when growing a business to make sure everyone stays on the same page. But this isn't easy when the organization places more focus on expansion and starts to lose track of who knows what and what is being prioritized in each department.
Misalignment in departments can be a major resource drain with all staff members working on their own priorities rather than focusing on the same company objectives. For example, if part of a real estate business was focusing on a bathroom remodel project while simultaneously dealing with flooring issues in a property, there could be wasted efforts and resources with projects needing to be redone or missing important resale opportunities.
Lessons Learned from Other Business's Success
Although many businesses experience new challenges as they grow over time, there are plenty of strategies available to help navigate these issues successfully. Many of the strategies available for successful business development have been tried and tested by a variety of well-known brands.
Below are some success stories for other large organizations and the lessons that can be learned from their resilience over the years:
Zappos
Most people know about Zappos and the products they offer online. As a popular shoe and apparel retailer, Zappos has needed to continuously provide a high level of customer service and fast, reliable shipping to set itself apart in a crowded e-commerce industry.
However, while the company's reputation is currently strong, it wasn't always easy to maintain. As the organization grew into what it is today, it faced significant hurdles in preventing departmental silos from emerging.
To help turn this around, former CEO Tony Hsieh implemented a unique “Holacracy” system that distributed authority and decision-making across various self-organized teams. This gave employees more ownership over streamlining decision-making specifically centered around keeping the customer the most important person in the room - avoiding unnecessary approval processes or back and forths with upper and lower management groups.
Ford Motor Company
It's hard to imagine that an automotive giant like Ford Motor Company experienced major setbacks in its development, but they weren't immune to the realities of scalability issues. Over the years, Ford has continued to battle competition while continuously needing to innovate and adapt.
Challenges started to emerge as massive expansion from their assembly line automation led to major disconnects between critical engineering departments spread across the world. To combat this problem, Ford established cross-functional teams for all of their factories made up of engineers, designers, and marketers.
Encouraging this collaboration on all design projects from various departments allowed for much more effective problem-solving when facing issues in both production and distribution as well as creating an environment where diverse perspectives and opinions were welcomed and used.
Apple
Apple has been synonymous with products that feature sleek designs and cutting-edge technology for a number of years now. But maintaining this innovative spirit and risk-taking culture hasn't always been easy.
Throughout the years, Apple has had to re-evaluate its company culture to ensure it continues to allow the creativity that has defined its products to continue to show. This has been in the face of fierce competition, changing technologies, and shifting consumer preferences.
Recognizing that excessive structure could quickly impact its ability to keep employees engaged in their work, Apple started defining a culture of open communication and cross-functional collaboration. Employees were encouraged to share ideas freely, while also being assigned to smaller, more agile teams dedicated to specific projects. This approach empowered employees, giving them ownership over their work and creating a better sense of pride and accomplishment.
Grow Your Business With Confidence
Effective team building is an important component of growing a business, but it isn't always easy. By following the examples set by successful companies that have experienced their own set of challenges, you can successfully navigate new roadblocks that come up while improving the long-term viability of your business.
Author Information
Author Name: Dalip Jaggi
Author Bio:
Entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company with a goal to democratize house flipping. Since its 2020-inception, Revive has since become the smartest solution for homeowners to maximize their home's sales value across the nation.
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