Scaling Up: How a Few Companies Make It...and Why the Rest Don't

by Verne Harnish

Winner of the 2015 International Book Awards for General Business

Winner of the 2015 National Indie Excellence Award for General Business

Winner of the 2015 Readers' Favorite International Book Award Gold Medal for Non-Fiction Business

Winner of the 2015 Paris Book Festival Award for Business

Winner of the 2015 Amsterdam Book Festival Award for Business

Winner of the 2015 San Francisco Book Festival Award for Business

Finalist of the 2015 International Book Awards for Best New Non-Fiction

It's been over a decade since Verne Harnish's best-selling book Mastering the Rockefeller Habits was first released. Scaling Up: How a Few Companies Make It...and Why the Rest Don't is the first major revision of this business classic. In Scaling Up, Harnish and his team share practical tools and techniques for building an industry-dominating business. These approaches have been honed from over three decades of advising tens of thousands of CEOs and executives and helping them navigate the increasing complexities (and weight) that come with scaling up a venture. This book is written so everyone -- from frontline employees to senior executives -- can get aligned in contributing to the growth of a firm. There's no reason to do it alone, yet many top leaders feel like they are the ones dragging the rest of the organization up the S-curve of growth. The goal of this book is to help you turn what feels like an anchor into wind at your back -- creating a company where the team is engaged; the customers are doing your marketing; and everyone is making money. To accomplish this, Scaling Up focuses on the four major decision areas every company must get right: People, Strategy, Execution, and Cash. The book includes a series of new one-page tools including the updated One-Page Strategic Plan and the Rockefeller Habits ChecklistTM, which more than 40,000 firms around the globe have used to scale their companies successfully -- many to $1 billion and beyond. Running a business is ultimately about freedom. Scaling Up shows business leaders how to get their organizations moving in sync to create something significant and enjoy the ride.

Genres: Business, Nonfiction, Entrepreneurship, Leadership, Management, Buisness, Personal Development

246 pages, Hardcover

First published October 21, 2014

Reviews

[Jonathan Lu · Rating 4 out of 5]

4D's
Driver
- Coaching
- Learning
- tech (scalable infrastructure)
Demands
- People (reputation)
- Process (productivity)
Disciplines
- Priorities
- Data
- Meeting rhythms
Decisions
- People
- Strategy
- Execution
- Cash

Barriers
28million firms - focus
- 96% < $1M: revenue
- <4% >$1M: cash
- 0.4% >$10M: GM focus
- 17,000 >$50M: predictability
- 2,500 >$500M
- 500 > $5B

Leadership
- Prediction: spend time with customers
- Delegation: not abdication.
○ Priorities
○ Data (kpi's)
○ Rhythm (feedback)
○ Recognition & reward
- Repetition: consistency
○ Values: lore, magic moments
○ Purpose: 1-line stump speech
○ Bhag: 10-25yr goal
○ Priorities: 30/90/360, 3-5yr

Scalable infrastructure
- 1-3: home based mom & pop
- 8-12: efficient, leader + helpers
○ Need phones, space
- 40-70: senior team of 5-7 with 7-10 each
○ Need accounting system
- 350-500: 7 leaders / 7 middle managers / 7-10 each
○ IT systems
- 2,500-3,500: one more layer of 7

Marketing
- 1hr per week mktg meeting
○ Product, price, place, promotion
○ Experience, exchange, everyplace, evangelism
- Identify top 25 influencers

People
1) Are you happy?
2) Would you rehire everyone?

Leadership
- 1person accountable (P)
- People responsible (C,E)
- Authority (A)

One page personal plan (OPPP)
- Relationships: individuals and communities. Start/stop/do more
- Achievements: personal goals
- Rituals: fitness, family, mental; professional & impact
- Wealth: as a means, not an end: all assets become liabilities

Function accountability chart (FACe)
- Delegate to people who don't need to be managed and regularly wow the team
- Strength of leader often becomes weakness of team
- No more than 1 person accountable for each function - every box filled
- Watchout for a few names that show up in many spots
- Link results to P&L or B/S
- Great execs don't introduce their title but what they are responsible for

Process Accountability Chart (PACe)
- Lean principles. Kaizen and waste elimination in process flow
- Review 1 process every 90days. 4-9 will get reviewed every 1-2yrs

Attracting & Hiring
- A players: top 10% for the level
- Create a job scorecard: SMART outcomes that the hire needs to accomplish in 1-3yrs
- Competencies > specific skills
- Teams need to be well rounded but individuals need not be. Prefer specialists > generalists?
- Interview 20:1 candidates
- Guerrilla recruiting - post in places for natural selection
- Will, values, results, skills

Managers/Coaches
5) Higher fewer people / pay more
- Customized comp is ok to keep top people. Variable vs fixed, vacation - fairness not sameness
4) Give recognition / show appreciation
- Positive : negative at 3:1
3) Clear expectations & line of site
- Link wdp to ogsm
- Kpi's, priorities, critical number to reach
2) Stop demotivating, start dehassling
- Focus on not demotivating, not motivating
- Best thing you can do for employees is to surround with A players
1) Play to strengths
- Help employees prune jobs to de-focus weaknesses

Onboarding - first impression
- Celebrate when they start not when they finish
- Invest 10% of time to professional development

Managers -> coaches
Direct reports -> direct supports
Human Resources -> talent development, human relations, people support…

Strategy
- Say no 20x more than yes = you have a strategy (after early stage)
- Strategy = chess
○ Not thinking ahead of the next move
○ Having 10x more next moves to do

Values, Purpose, Competencies
Core Values - give management the confidence to delegate important tasks
- Test for 1yr before setting as a core value
- Reflect: are there examples where we lived these values?
○ If yes, then it's a core value
○ If no, then it's a wish-list item
- Phrases, not single words

Core Purpose - mission (but longer term). A Single Word
- What do we do? Why/Why until you reach "save the world"
○ Then back up 1-step

Core Competencies
- Not easy for competitors to imitate
- Can be reused widely for many products/markets
- Must contribute to customer value

How to reinforce values?
- Storytelling - identify lore to reinforce values, become legend
- Recruitment - hire for alignment with core values
- Onboarding - don't skimp on the process
- Performance appraisals - link to core values, eliminate gray area
- Recognition & rewards -
- Newsletters
- Themes
- Everyday

7 Strata of Strategy
- Set a team of 3-5 to discuss weekly ("the council")

S1: Words you own (mindshare)
- Google search terms (SEO), or even the company name
- 87% of ALL customers use the internet to find purchases

S2: Sandbox and Brand Promises
- Who/where are your core customers?
- What are you really selling them?
- What are your three brand promises?
○ Avoid "quality", "value", or "service" - too subjective
- How do you measure if you're keeping those promises?

S3: Brand Promise Guarantee
- Dominos: Pizza delivered in 30mins or free
- Oracle: software will run 2x faster, or we pay you $1M

S4: One-phrase strategy (key to making money)
- Ikea: flat-pack furniture or Apple: Close architecture
- Piss off 93% of customers to focus on the 7% fanatics

S5: Differentiating Activities
- "how" competitive advantages
- SWA: uses 1 type of aircraft and 2nd tier airports, direct flights

S6: X-factor (10x advantage)
- What is the 1 thing that I hate most about my industry?
○ Get out of the building, too much internal bias

S7: Profit per X (BHAG)
- What is the single tracking metric that is most important?
- Measure BHAG in these same units

One Page Strategic Plan (OPSP)
- Get it Down, then Get it Right (p127)
- Core Purpose: one word
- BHAG: one 10-25yr goal (long term)
- Profit per X: one KPI (BHAG metric)
- Brand Promise: one most important promise of the brand
- Critical Number: one key driver for the year (short term)
- Middle-managers focus on SWOT, senior managers focus on SWT
○ SWOT can bog executives into operational details, distracting them
○ Trends - driving forces in a forecast (exogenous)
○ Strengths/weaknesses - focus on inherent ones (endogenous)
§ Let middle-managers focus on temporal strengths/weaknesses

Execution
- Rockefeller Habits Checklist - focus on one every quarter (p151)
○ Over 2-3yrs you will have moved through all 10 habits

Data
- Not just quantified big data, but also human intelligence
- Senior leaders should be in the market 80% of time
- Senior leaders should have a start/stop/keep conversation with at least 1 employ weekly
○ Discuss at weekly senior lead team meetings
○ Track progress of items - transparent for org to see. Close the loop
Customer feedback: 4Q's
- How are you doing?
- What's going on in your industry/neighborhood?
- What do you hear about our competitors?
- How are we doing?
Sales feedback - daily in voice-mail to update positive sales results
- And provide CI
- If in writing they will never do it
- Middle management team to close the loop on key customer feedback (sr team reviews)
Scoreboards everywhere
- ExO dashboard concept
Alignwithgazelles.com - track and manage priorities & KPI's

Rhythm
Root meaning of company = to share bread - daily lunch or breakfast with LT
- Daily mtg > casual encounters
○ Peer pressure
○ Collective intelligence
○ Clear communication
- 15min daily huddle, tactical
- 60-90min weekly, progress & CI
- Half day monthly, strategy kpi
- Full day quarterly, culture bhag

Daily meeting - 1min/person
1) what's up in next 24hrs
2) What are daily metrics
3) Where are you stuck
- Do not check up on past progress

Weekly meeting
1) 5min goods news
2) 10min priorities' status
3) 10min customer & employee feedback
4) 30-60min one or two topics
5) Follow up list - who/what/when
6) One-phrase close from everyone
7) Write weekly CEO 1pager for org

Cash
Keep 3-10x more cash reserves than competitors

Cash conversion cycle
- Sales, delivery, billing & payment, make/production inventory cycle
- Eliminate mistakes
- Find new business models & increase profitability

Accounting: #2 reason for losing $
- Waterfall graphs - identify where company makes vs loses $
- Fasb books vs internal books - choose your own amortization schedule that fits
- GM = revenue - nonlabor direct costs
○ 15% pretax profit = good
Force 1: taxes
- Wealth comes only from after tax
Force 2: mange debt
- Try best not to lever
Force 3: core capital target
- 2months OpEx on hand after tax
Force 4: pay dividends

Key financial levers
- EBIT/Revenue = P&L efficiency
- Revenue/Net operating assets = balance sheet effectiveness (asset turnover)
- Return on capital = EBIT / net operating assets
○ Target >30%

4 drivers
- Profitability
- Working capital management
○ (AR + inventory - AP)/sales
- Noncurrent asset management
- Cash flow/funding

Power of one - 1% sensitivity analysis
- Price
- Volume
- Cogs
- OpEx
- AR
- Inventory / WIP
- AP

[Khalid Sulami · Rating 5 out of 5]

One of the most amazing books that I've read about business and I really consider it as a MUST-READ book for any entrepreneur who wants to take the next step! Here're some takeaways:
1. Only 4% of American companies ever exceed $1 million in revenue.
2. Of the 4%, a small number develops into “gazelles” – fast-growing companies accounting for almost all of the nation’s job growth and innovation.
3. Gazelles focus on improving “people, strategy, execution and cash.”
4. Start with the most pressing of the four areas – cash. Use the “Rockefeller Habits” to execute change and drive lasting improvement.
5. Develop a 10- to 25-year aggressive goal and some specific 90-day goals to achieve while pursuing the larger goal. Make sure everyone knows and works toward the goals.
6. Hire carefully, and recruit great managers. Managers drive employee productivity.
7. Every goal must be attached to a person who is accountable for it.
8. Each goal aligns to a value. Every employee must know and live company values.
9. Focus on cash and cash flow – the most critical elements of growth.
10. Gazelle leaders appreciate their teams, delegate broadly and use data to make better predictions and decisions.

[Josh Steimle · Rating 5 out of 5]

Rarely do I give out five star ratings. Five stars means it can't be improved upon. Five stars means it's so important everyone should read it. Five stars means it's on par with the Bible, or whatever religious text you subscribe to. To be clear, I'm sure this book can be improved on. Not sure how, but I don't want to limit Verne. I'm not sure EVERYONE should read this. I'm not sure what good it would do my 80 year old mother who isn't looking to scale anything but her kale garden. And it's not really on par with the Bible, of course. But I can't give it a four star rating because too many people would look at that, people who SHOULD read it, and would think "Meh, I guess it's not super important that I read this book."

Let me be clear--if you are an entrepreneur or business executive then this may be the most important book you ever read. Good to Great? That's a great book. So is the 4 Hour Work Week. The Lean Startup, 7 Habits, Innovator's Dilemma, Blue Ocean Strategy, everything by Peter Drucker, Hard Thing About Hard Things, Start With Why, Art of War, Think and Grow Rich, Delivering Happiness, Who Moved My Cheese, Thank You Economy, Power of Habit, Checklist Manifesto, Ultimate Question, Getting More, Execution, Who, How Will You Measure Your Life, Go Giver, Profit First, etc.--these are all great books, I highly recommend them all, but Scaling Up has something these books don't have--instant high value usability from cover to cover.

As an entrepreneur since 1999, this book, more than any other, is the book I wish I had read 10 times and internalized thoroughly before I started my business. It would have made a bigger difference than any other single book I could have read.

So what am I going to do now? I've already given a copy to each member of my inner circle at my company. I'll be giving a copy to each member of our management team next. I'm giving it to a potential business partner. I've read it once on Audible, and I bought a Kindle version so I can go through it line by line and make notes and action plans based on what's in it. This isn't a book that will just inspire you, this is the book that gives you the specific tools you need to be successful in your business and grow it. I couldn't be more excited about executing on it.

This book is especially important for you to read if you're an entrepreneur because it's entrepreneurs who will save the world. Pick any problem you like; war, global warming, racism, poverty, drunk driving, health care, government, banking--and somewhere, sometime, an entrepreneur will come up with the solution. But if he or she doesn't know how to run a business, we may never know how that entrepreneur could have changed the world. This is the book that can make the difference between an entrepreneur giving it a good go, and then giving up, or that entrepreneur making more than just a dent in the universe.

[Pavel Annenkov · Rating 5 out of 5]

Все инструменты для управления современной компанией в одной книге. Это учебник и руководство к которому я возвращаюсь постоянно.

[Andrew Milne · Rating 5 out of 5]

Well worth the read. Lost of good reminders &
detailed practices... One of those books that makes you challenge your thinking on your own business. I would highly recommend it for those looking for guidance as they scale.

[Bartosz Majewski · Rating 5 out of 5]

Experience of reading this book is similar in pleasure to drinking from a firehose. Now I need to shelve it and wait a while until I will be able to resume to it. I've implemented some ideas that I've taken from this book with positive results. I am planning to keep implementing for the next 18 months in various areas of our business. Probably I will read a little fewer business books in the rest of 2019 because my pipeline of ideas is full thanks to scaling up. No point in reading more if I can't implement because I've got no throughput for other ideas.

It's a rare breed of a book written by a consultant that's highly actionable and not-so-much high level.

PS. If you think about buying it on kindle - don't. I did it and wasted 20 bucks. I think it's the worst kindle published book i have ever seen (and I probably have seen 100+). Has a ton of diagrams in it - those are worthless on kindle. I resumed reading only 6 months later I bought the polish version published by PWN which costs 90 PLN which is 2-3x the price of a normal book.

[Thomas Hefke · Rating 3 out of 5]

That’s not a book. That’s a messed up collection of ideas and checklists. Way to much - way to little Detail way to much references to other books.

For every topic covered there is a better book out there. If you hope to solve all your problems with one book. Maybe this is it.

[Richard Podsada · Rating 2 out of 5]

I haven't gone through all of the book, but honestly at this point I'm doubting I will... Why?

1) This book has enough acronyms to make the military jealous. The author seems to create one for every single tool, sheet and concept in the book. This may be a shallow reason to not like the book, but it got on my nerves and became a distraction pretty quickly.

2) I own (and love) the original Rockefeller Habits, and while this book has some updated tools, charts, but so far I haven't felt that I've gained much for juicy new information, just updated worksheets and a slightly different process to get there. I found the old book simpler to follow and remember.

3) I feel a tiny hint of too much "Jim Collins says..." throughout the work. From the formatting (e.g. gray boxes highlighting excerpts and tips, almost identical to Good to Great), to many references to Jim's ideas and concepts (BHAG, Hedgehog Concept, etc.) While there's nothing wrong with building on great ideas, I came close to saying "If I wanted to read Jim Collin's book, I'd read Jim Collin's book!"

Details aside, I'll likely give it another chance, but for now I had to put it down.

[Sebastian Gebski · Rating 4 out of 5]

I know how critically well acclaimed this book is & I'm not surprised. I appreciate what it covers & how it covers. I also don't think it's repetitive or too obvious - actually I've noted down some interesting remarks & did some highlighting as well.

But ... still I didn't enjoy it as much as some other, similar lectures. I like that author appreciates the role of organization's culture in scaling up, but IMHO his idea for building this culture "smells" too corporate & detached from where culture is actually cultivated, lived by & grown. Maybe my way of thinking about scaling fit more limited, strictly organic scenarios, maybe I'm just wiling to sacrifice far less to actually scale up as an organization.

Anyway - good book, good points, surely a lot of material to think about.

[Jacek Bartczak · Rating 4 out of 5]

Quite an uneven book. It took me longer than I expected because I often made pauses:
- sometimes to think "wooow, that's interesting, how does it look at Casbeg / at one of my clients?",
- sometimes I lost my interest because the book repeats the same things over and over again (especially in the part about strategy).

The book includes many great tips:
- some of them are fireworks - catchy, easy to implement, results should be immediate,
- some of them usually create reactions like "I know X is important, but I don't have to do X such precisely / systematically - maybe I will get back to it in the next quarter, now I'm too busy".

Highly recommended position - I see how damaging may be ignoring many tips which "Scaling Up" has.

[Lejla · Rating 4 out of 5]

Very useful book, especially for those who want to start their own business or who already own one and want to improve it.

What I liked most are examples of successful companies and their way of running business. A lot of interesting stuff can be learned from this book.

[Michal Skurowski · Rating 5 out of 5]

great book, super practical - we've immediately started to implement the methodology to our company and it works great

[Ian Bennett · Rating 5 out of 5]

1st class book. Full of valuable information and guidance

[Toma · Rating 5 out of 5]

I don't usually give 5 star reviews, but this book is like a table of contents for what you need to know to grow a business.

[FAIZAN KHAN · Rating 5 out of 5]

* * * * * * * * * *
I'd Give This Book A 10-Star Rating.
Let Me Tell You This Tho, This Book Is Densely Packed With The Best Business Acumen.
This Book Will Require You To Do Atleast 5-10 Hours Of Workshop Time With The Senior Members Of Business - Just To Discuss What's In It.

The Book Does A Detailed Discussion On What Are The Things Necessary For If You Want To Scale Your Buisness.

Most Family Businesses Or Small Entrepreneurial Ventures Fail Because Eventually They're Not Able To Scale.
And Some People Hold The Opinion That If Your Business Is Not Scalable, It's Not Really A Business.

The Tools Given In This Book Will Most Definitely Help You Out With Problems You Will Face When Scaling A Business.
It's 4 Way View Of A Growing Business Will Completely Rewire Your Thinking, Culture And Business If Your Willing To Put In The Time And Enthusiasm Required By It.

Read Before Even Thinking Of Starting A Business!

[Hayden · Rating 4 out of 5]

This book is like a collection of all the best bits of other business books. Every chapter seemed to be based on another book you've likely heard of but with a contemporary take on the lessons/points. I enjoyed this book and god a huge list of additional books to read. This books is great to giving you a large number of resources to help you address any of the scaling up issues the book identifies.

[TS Dashley · Rating 5 out of 5]

This book was given to me by the President of our organization. Every January we meet as a executive team at our HQ in Portland OR. Each year our President identifies a resource that addresses our current and future issues. Our national company was founded in 2004 and has gone from $4 million in sales revenue in our first year, to over $300 million last year.

This book's principles to growth and scaling up allowed us to come together last month and identify a measurable path to scaling up!

[Eugene · Rating 5 out of 5]

great set of ideas and things to do to grow the company. I enjoyed references to other books like "read that 3 pages in that book - that is all you need to know about the subject"

[Brendan Brooks · Rating 4 out of 5]

Most excellent, plenty of tools and resources to implement and frameworks to guide thinking. Very practical.

[David Skinner · Rating 4 out of 5]

Harnish is intensely practical, giving incredible tips for operational efficiency, team building, meeting efficiency, and basic financial guidance. It is geared towards companies that manufacture or sell / distribute physical products, but there are principles that can be applied to anybody looking to improve themselves or their personal operation in business.

The most applicable point Harnish makes that I can appropriate for my own use as a 1099 contractor in the real estate business is to write out my own values in detail and avoid business-speak terms and phrases. The two guiding values I identified were 1) Fanatical intensity, and 2) Dedication to make everybody around me fabulously wealthy. I want to do whatever I can to have those two characteristics be true descriptors of who I am and how I operate in every facet in my business and life as a person, businessman, and Christian.

[Krzysztof Karolczak · Rating 5 out of 5]

Rarely do I mark and highlight things in books - after reading Scaling Up I've ended up with tons of notes, post-its and underlined paragraphs. The author does a great job of compiling a set of tools which I found extremely useful and I believe anyone scaling the company beyond 50 people will do too.

The book is structured around 4 sections - People, Strategy, Execution, and Cash challenging the management team to evaluate the company 'maturity' in those fields. The content in each section is quite compact and offers tools in form of 'one-page sheets' (comparable for example with the well-known business model canvas) - and while one might argue if this is the optimal solution, understanding the rationale behind each of this tools is a great asset in itself.

A must have that I will definitely revisit a few more times. Also, feel inspired to do a few internal workshops incorporating the advice from the Scaling up.

[Kevin Merken · Rating 5 out of 5]

"Scaling Up" is one of the best business books that I have read for quite some time. Verne Harnish masters the art of simplification of the most relevant factos while building your business on the one hand. On the other hand, it feels like Harnish has read all relevant books in modern business history for growing companies and has talked to all the authors in depth. He has this talent to extract the most important aspects while never losing the common theme.
Last but not least, Harnish is a successful entrepreneur himself. You feel caught by the small everyday biases that mislead you as an entrepreneur in your mindset and execution bubble.
One negative point: the last chapter about cash was mainly written by "guests". It goes too much into detail and the writing style is not as comprehensive as the rest of the book.

[Aster Papazyan · Rating 3 out of 5]

Extraordinary book for almost everyone - from front line people to executives. Many ideas around four pillars: People, Strategy, Execution and Cash. As well as many one-page tools as for example one-page strategic plan. However what makes this book absolutely valuable for me is its bibliografy. Practically you would find all business must-read titles here. Author provided them with specific explanation tied to chapter he place that note. 😎 My PERSONAL recommendation is following: if you read around 50 books a year, this book should be one of them👍

[Erik Murin · Rating 4 out of 5]

For those who own very small businesses that sell services instead of products, this won't be a great book. It tells a lot about scaling up at s medium-sized company that sells products, but there's little advice that could be applied for smaller service providers. Anyway, some things were really useful, and I will read this book again when my company gets larger. It was a great book, but it wasn't the greatest time to read it.

[Geoff Brailey · Rating 5 out of 5]

The two keys for business success, an insatiable desire to learn and unbiased focus on action. Excellent!!

Great solid book on business success. Scaling up was practical, clear and very easy to read. Loaded with tips and further reading it was comprehensive but not tiring to read. A great ongoing resource to guide businesses and leaders that want to grow.

[Filip Rygg · Rating 5 out of 5]

Svært god bok.

[Allie · Rating 4 out of 5]

Worthwhile read for anyone starting out from ground zero with their own business. Tons of wisdom, insight and tips on how to be successful while balancing life with work.

[Adam Nowak · Rating 5 out of 5]

I was a bit sceptic about this one, but it's really really good, actually:)
Max rating for great content and enforcing my brain to think a lot!

[Michael Karpov]

https://www.evernote.com/shard/s14/nl...

книга The E-Myth Revisited Майкла Гербера
• Сократите время управления бизнесом (оперативной деятельностью) на 80%.
• Направьте усилия старших управляющих на прямое взаимодействие с рынком.
• Соответствующим образом скоординируйте работу остальных сотрудников для достижения цели.
три препятствия:
• Лидерство: неспособность привлечь (или вырастить внутри организации) доста- точное количество лидеров, способных делегировать свои полномочия и предвидеть последствия своих действий.
• Масштабируемая инфраструктура: отсутствие систем и структур (как физиче- ских, так и организационных), способных выдержать усложнение коммуникаций и процессов принятия решений, вызванное ростом компании.
• Рыночная динамика: неспособность справиться с растущей конкуренцией (и раз- мывающейся маржей), возникающей при росте бизнеса.
--
При разработке стратегии следуйте совету великого мастера Гэри Хэмела. Он говорил, что настоящая стратегия должна соответствовать двум критериям: во-первых, будущая деятельность должна быть по-настоящему важна для значитель- ного количества клиентов, а во-вторых, она должна отличаться от того, что делают конкуренты
--
Bid Hairy Audacious Goal, или BHAG
--
схема 4D* — для растущих предприятий
стимул (Driver), требования (Demands), дисциплина (Disciplines), решения (Decisions).
Для масштабирования бизнеса вы должны уметь принимать правиль- ные решения в четырех основных областях — люди, стратегия, исполнение и деньги.
Чтобы начать работу со схемой 4D, задайте себе первый вопрос: «Какая из четырех областей — люди, стратегия, исполнение или деньги — требует наибольшего внимания в настоящий момент?» Это неплохой старт!
--
Люди
КЛЮЧЕВЫЕ ВОПРОСЫ. Довольны ли заинтересованные лица (сотрудники, клиенты, акционеры) вашим бизнесом? Достаточно ли они в него вовлечены? Есть ли кто-то, кого вы больше не хотели бы видеть членом команды?
Следует ли ваша компания принципу «правильные люди правильно делают правильные вещи»?
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Определите 4–9 процессов, которые способствуют росту вашего бизнеса.
Назначьте конкретных людей, ответственных за каждый процесс.
Определите ключевые показатели эффективности (KPI) каждого процесса (лучше, быстрее, дешевле).
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Стратегия
КЛЮЧЕВЫЕ ВОПРОСЫ. Можете ли вы кратко сформулировать стратегию своей компании? Обеспечивает ли она устойчивый рост выручки и валовой маржи?
Мы разобьем его на два основных этапа: стратегическое мышление и исполнительное планирование
Одностраничный стратегический план (ОСП)
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Исполнение
КЛЮЧЕВОЙ ВОПРОС. Все ли процессы в вашей компании идут как надо и обес- печивают высокую доходность?
Превышает ли доходность компании средний уровень по отрасли в три или более раз?
Исполнение: контрольный список принципов Рокфеллера:
1. Здоровая и слаженная команда руководителей.
2. Все знакомы с главной квартальной целью развития компании.
3. Установленный ритм общения увеличивает скорость и точность обмена информацией.
4. У каждой грани компании есть человек, ответственный за достижение целей.
5. Каждый сотрудник вносит свой вклад в определение проблем и перспектив.
6. Получайте данные от клиентов и анализируйте их с той же частотой и тщательностью, что и финансовые данные.
7. Ценности и цели ядра «живы» во всей компании.
8. Сотрудники могут точно сформулировать следующие ключевые компоненты стратегии компании.
9. Все сотрудники могут аргументировать цифрами, был ли успешен рабочий день или неделя (колонка 7 одностраничного стратегического плана).
10. Планы и результаты деятельности компании очевидны для всех.
книга Патрика Ленсиони «Как решить пять основных проблем команды»
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Деньги
КЛЮЧЕВОЙ ВОПРОС. Имеется ли у вас надежный источник денег (желательно, внутренний) для поддержания роста вашего бизнеса?
крупные компании обычно обладают запасом денежных средств в 3–10 раз больше, чем у конкурентов, и что такими суммами они располагают с самого начала своей деятельности
Очень важно также знать свой цикл обращения денежных средств (ЦОДС)
Прочитать классическую статью Нила Черчилля и Джона Маллинса в Harward Business Review, озаглавленную How Fast Can Your Company Afford to Grow? («Насколько быстро ваша компания может вырасти?»)
Вам потребуются следующие инструменты:
Сила одного (Инструмент позволяет рассчитывать выгоду для потоков денежных средств в том случае, если каждый день любой из этих параметров будет меняться на 1%.)
Вот семь основных финансовых рычагов, позволяющих менеджерам повысить доходность и увеличить денежный поток.
1. Цена. Вы можете повысить цену на продукты и услуги.
2. Объем. Вы можете продавать больше продуктов по той же цене.
3. Себестоимость. Вы можете снизить затраты на сырье и оплату труда.
4. Операционные затраты. Вы можете уменьшить текущие расходы.
5. Дебиторская задолженность. Вы можете быстрее собирать оплату с должников.
6. Запасы / незавершенное производство. Вы можете сократить объем запасов.
7. Кредиторская задолженность. Вы можете задерживать выплаты кредиторам.
Стратегия увеличения объема денежных средств (СУОДС). Разделите ЦОДС на четыре компонента и изучите один из трех способов повысить приток денежных средств в бизнес
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Чередование подъемов и спадов в работе компании объясняется не доходностью, а коли- чеством работающих на нее сотрудников. Именно от этого зависит уровень сложности
• 1–3 сотрудника (большинство индивидуальных предпринимателей);
• 8–12 сотрудников (эффективная компания, имеющая лидера и нескольких помощ- ников);
• 40–70 сотрудников (команда старших управляющих из 5–7 человек, команда лиде- ров из 7–10 человек — в такой компании все знают друг друга по именам);
• 350–500 сотрудников (7 лидеров, 7 менеджеров среднего звена, каждый из которых управляет командами по 7–10 человек, — такая компания в состоянии работать весьма эффективно);
• 2500–3500 сотрудников (еще больше групп, кратных 7 или 10)
Более подробную информацию об этих циклах можно по- черпнуть из классической статьи профессора Ларри Грейнера в Harward Economic Review под названием Evolution and Revolution as Organizations Grow («Эволюция и революция в развитии компаний»)
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Когда штат компании достигнет 50 человек, старшие лидеры должны выбрать несколько сотрудников и воспитать из них своих помощников, обладающих теми же ценностями, заинтересованностью и знаниями. Таким образом, в компании окажется достаточно талантливых сотрудников, которым можно будет передать мириады задач, сделок и транзакций, необходимых для ее роста
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Успешное делегирование состоит из четырех этапов (при условии, что вы поручаете полномочия правильному сотруднику или подходящей команде).
1. Объясните, чего должен добиться сотрудник или команда (приоритеты — одностраничный стратегический план).
2. Создайтесистемупоказателейдлямониторингапроцесса(данные—количествен- ные и качественные KPI).
3. Обеспечьте сотруднику или команде обратную связь (ритм встреч).
4. Обеспечьтесотрудникуиликомандесвоевременноепризнаниезаслугидостойное вознаграждение (ведь вы работаете с людьми, а не с машинами).
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Она напоминает Дэвиду о важном правиле лидерства — выбрать сообщение и повторять его до тех пор, пока организация не отреагирует
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Повторение означает последовательность. Заканчивайте там же, где начинаете. Держите свое слово. Не позволяйте действиям расходиться со словами. Последовательность — важная часть повторения.
В этой книге мы тоже используем возможности повторения. В частности, будем регулярно обращать особое внимание на следующие факторы.
1. Основные ценности: ряд правил, определяющих корпоративную культуру, кото- рые ежедневно реализуются через вашу кадровую систему (люди).
2. Основная задача: ее регулярно формулирует в своих обращениях директор компании, чтобы обеспечить вовлеченность всех сотрудников в общий процесс.
3. БИХАГ: цель на 10–25 лет, представляющая собой контекст для всех решений, принимаемых в организации.
4. Приоритеты/темы: комплексы приоритетов на три — пять лет, один год и каж- дый квартал, требующие постоянного (ежедневного и еженедельного) пересмотра и актуализации.
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Кроме того, важно правильно распределить свое внимание к финансовым показа- телям. От открытия компании до получения первого миллиона или двух главным экономическим фактором для нее будет выручка. Компания продает изо всех сил, потому что на этом этапе важнейшая задача доказать, что существует рынок для ее продуктов или услуг.
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На этапе между 1 и 10 миллионами компания должна сфокусироваться на денежных средствах. Рост притягивает деньги, а так как организация делает лишь первый шаг на пути масштабирования, ее потребности в деньгах возрастают многократно. Кроме того, на этой стадии развития компания все еще пытается найти свое место на рынке, и любые эксперименты (или ошибки) дорого обходятся. В этот момент руководители должны разработать модель обеспечения компании денежными средствами (то есть ответить на вопросы «Какая бизнес-модель сможет генерировать достаточно денег для роста компании? Сможет ли существующая бизнес-модель генерировать денежные средства изнутри? Достаточно ли существующих кредитных линий для устойчивого роста? Сколько готовы заплатить инвесторы?»).
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Чтобы избежать размытия маржи, важно очень четко сформулировать свое ценовое предложение на рынке
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Если вам придется иметь дело со спорными ситуациями, предлагаем прочитать «Трудные диалоги. Что и как говорить, когда ставки высоки» Керри Паттерсона
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В этом разделе мы рассмотрим три небольшие методики для работы с людьми.
1. Одностраничныйперсональныйплан(ОПП):служитосновойдляпланиро- вания личной и профессиональной жизни.
2. Таблица функциональной ответственности (ТФО): позволяет выявить людей, способных отвечать за масштабирование бизнеса.
3. Таблица процессуальной ответственности (ТПО): содержит список процес- сов и ответственных за них людей, что позволяет бизнесу работать безотказно.
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Таблица процессуальной ответственности (ТПО):
- Определите 4–9 процессов, которые способствуют росту вашего бизнеса.
- Назначьте конкретных людей, ответственных за каждый процесс.
- Определите ключевые показатели эффективности (KPI) каждого процесса (лучше, быстрее, дешевле).
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1. У вас есть функция, которую выполняет более чем один человек?
2. Есть ли человек, чье имя появляется в большем числе граф,чем остальные?
3. Есть ли у вас графы, не заполненные именами?
4. Вы в восторге от имени в каждой ячейке?
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Для понимания более универсальных KPI мы рекомендуем книгу Бернарда Марра
«Ключевые показатели эффективности. 75 показателей, которые должен знать каждый менеджер»
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Какой KPI наиболее важен для руководителя компании?
В случае с главой компании — это процент удовлетворительных результатов в ТФО (то есть основная работа руководителя состоит в том, чтобы убедиться: в компании правильные люди правильно делают правильные вещи)
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Обсудите и согласуйте от четырех до девяти ключевых процессов в вашей организации.
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В заключение хотим сказать, что сила ваших сотрудников — в правильном руководстве, которое правильно делает правильные вещи (ТФО), и в правильной системе и процессах, поддерживающих этих людей (ТПО). Скомбинировав правильно заполненные ТФО и ТПО, вы получите ингредиенты для великой компании — ключевых людей и процессы.
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[Michael G King · Rating 5 out of 5]

Tons of useful tools and frameworks

I love frameworks and tools. Scaling Up is full of them. 10/10 recommend for any size business. Make sure to implement though!