SCRAMBLING TO SCALING
The central challenge for mid-market companies is making the shift from "scrambling" to "scaling." Few organizations effectively navigate this transition due to what Stagen refers to as the performance paradox: the "winning formula" that created a company's initial success becomes the very thing that holds it back from getting to the next level. Additionally, typical entrepreneurial organizations are limited by a number of factors, including: executive leadership experience, infrastructure limitations, poor understanding of key financial drivers, an overemphasis on sales and top-line revenue growth, and a reliance on individual heroics to solve problems.
As illustrated in the table below, new competencies and a radically different mindset are required for an organization to make the move to scaling.
SCRAMBLING |
VS SCALING |
| Reactive | Proactive |
| Erratic results | Sustainable results |
| Don't have time to plan | Planning frees up time |
| Revenue focus | Profit focus |
| Higher variable cost, lower fixed cost | Higher fixed cost, lower variable cost |
| Great things accomplished through individual heroism | Great things accomplished by teams leveraging a powerful model |


