Ebusiness Source

In thermodynamics a phase transition marks the shift from one state to another. As energy in the system increases, the enthalpy, the states move through the progression outlined to the right.

What I want to point out is that each state has its own properties and in most cases it would be hard to confuse one for another. For example, an ice cube (solid) doesn’t resemble steam (gas).

In fact, generally speaking, the states are so different from one another that for the longest time we (people, that is) thought they were altogether different rather than different manifestations of the same basic substance.

And that’s how it is in business, too. One state doesn’t really resemble another at all – though they grow out of each other as more and more energy is poured in.

Leaders are known for pursuing and provoking state changes. For example, they like to go from being the first ones on the scene to being the world-recognized leader in the field. But, it takes quite a different capacity to mine the frontier than it does to serve the planet.

In the first situation, standardization falls by the wayside as the spirit of adventure and exploration carries the day. But, as one moves to world domination, suddenly issues of scalability loom – how does one keep customers happy when suddenly there are billions? This is the kind of issue we see companies like Apple, Facebook, Google, Microsoft, and Twitter tackling.

It’s a fact that most companies won’t realize the global leadership of these giants. Nonetheless, there are state changes to be sought and then reckoned with. For example, serving an enthusiastic group of early adopters – the people who love you and what you stand for – is quite different than providing for those who have no particular bias in your favor and may even be coming over to your services and products unwillingly, just because they have to now that you’re winning prominence.

When this happens, the biggest thorn in your side may not be processing all these new customers, but adjusting your own staff and business processes. We all like our ship to run smoothly. And when growth scales up it can be anything but smooth.

Rapid growth often requires speedy adjustments, innovation in real time. Preparing your people and your head for the changes that come from crossing a threshold is a challenge. But, of course, scaling up is worth the trouble. It is one of the most powerful forms of growth – exponential increases.

Every successful expansion effort works its way through twelve core areas. These are your primary variables. Each situation is different, and these twelve are anything but discrete. They are interdependent. So, they must be dealt with together. They are:

1. Leadership - who’s in charge globally and locally?
2. Business Development - where is business grown and how?
3. Partnerships - who is on our side and how do we work together?
4. Thought Leadership and Public Relations - who are we educating and by what means?
5. Finance and Risk Management - what are the numbers and how are decisions made?
6. Operations - how does logistics and execution drive or inhibit growth?
7. Talent and Human Development - are we developing the people we need now and tomorrow?
8. Knowledge Sharing, Training, and Support - how do we learn, adapt, and innovate?
9. Procurement - what shifts in the ways we obtain products and services?
10. Legal - are we on new ground, what do we need to know?
11. Information Technology - this is the #1 infrastructure support and constraint.
12. Business Processes and Administration - how do we change how we do things internally?

When you are planning to move to another level of performance, to transit a phase change, consider each and how they support the others. By systematically exploring how each of these twelve areas can be prompted to meet your growth, you can ensure almost all of the details and elements are accounted for as you prepare for a new level of growth.

Seth Kahan is a Change Leadership specialist. He has consulted with CEOs and executives in over 50 world-class organizations that include Shell, World Bank, Marriott, Prudential, Project Management Institute, and NASA. His book, Getting Change Right: How Leaders Transform Organizations from the Inside Out, is a Washington Post bestseller. Visit GettingChangeRight.com for a free excerpt.

Similar Posts:

• Searching for Unicorns – The Innovation Matrix
• Innovation – The Last People-Centric Process
• Don’t Fight Innovation Blockers
• Four Kinds of Innovation Time
• Solving Customer Friction