Summary Flashcards
What portion of new companies grow to become ‘big successful game-changers’?
Only a small number.
What can pose challenges to a well running business with a great product?
Scaling.
Does upgrading a business to bigger levels make things easier?
No
What are the 3 main blinks of scaling up your business?
Growth does not ensure success. Right words will always help. And cash is the king.
What should you keep in mind if you don’t want to run out of cash or lose track of strategic decisions while scaling up your company?
Your organizational structure and decision-making processes should be perfect.
Who founded the 4D framework for successful growth of businesses?
A global executive company known as the ‘Gazelles team’.
What are the essential four D’s for successful scaling?
The four D’s are ‘drivers, demands, discipline and decisions’.
What does “driver” in the four D’s mean?
It means that ‘your managers are your coaches’; they have to give one-on-one coaching to the employees to keep them motivated.
What does it mean by “demands” in the four D’s?
Leaders have to find a balance between demands of stakeholders and those of actual processes of the work.
How important is one’s reputation with the stakeholder?
It should always be kept in mind.
How is discipline maintained?
By implementing a routine in the company and by having a defined target in mind to prioritize efficiently.
How do ‘regular meeting routine and constant data reviews’ help maintain discipline?
They help detect problems immediately and tackle them quickly.
In what pattern should the problems should be resolved while scaling up?
Like a Sudoku puzzle, biggest issues should be tackled first and then the smaller ones.
What are the four problem areas that also provide opportunities for 4Ds to grow?
People, Strategy, Execution and Cash flows.
What percentage of all US companies will become high-impact firms that last for over 25 years and contribute greatly to economic growth?
Two to three percent.
What is a ‘growth paradox’?
Perception is that if a company grows, things become easier, however the more the employees, the more difficult it is to organize them effectively.
What is done to maintain communication and flow of information in a company?
Company is divided into teams and subteams.
In what kind of teams, is the communication hindered?
In big teams.
How many people should be there in a subteam?
Seven to ten people.
What is the reason behind getting stuck in the growth process?
It is likely that the team structure and size is not organized.
‘If you want your success to be long-term, you’ll have to view _________ as a long-term process too.’
Expansion.
What is a surefire way to drive a business to collapse?
A lack of accountability.
What is developed by the author to create accountability and make it visible?
Function Accountability Chart (FACe) and Process Accountability Chart (PACe).
What does FACe do?
It can be used to measure success and define who is responsible for what.
How does FACe work?
Initially you have to write down all of the company’s functions. The executives have to then fill in the responsible person for each function and the key performance indicators(KPIs).
What should be done after creating the FACe?
Team members who have more than one function but don’t have clear accountability must be located.
What does PACe do?
It specifies the processes that drive the business and the people who are responsible for them.
What are the 5 steps to use a PACe?
- Identify the key processes of the firm.
- Give one person oversight of each process.
- Outline which KPIs measure the process.
- Describe how you would improve each process.
- Map who is involved in each process at each critical step.
Q29: According to the saying, a single excellent employee can replace how many good ones?
Ans: Three good ones.
