Scrambling to Scaling

The central challenge for growth 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