Hey Founder, Are Your Directors Running the Show? (Let’s Hope So!)

Directors

Photo by dix sept on Unsplash

I hope this message finds you well amidst the whirlwind of scaling your business. I recently had an engaging conversation with a CFO and co-founder I support, and they posed a thought-provoking question: "How do we know when our company has gone through adolescence?" This is a pivotal stage in the life cycle of any organization, and I'm excited to shed some light on it.

As conceptualized by the insightful Ichak Adizes, every organization experiences a life cycle from infancy to maturity. Each phase comes with its unique set of challenges that must be met before progressing to the next stage. "Adolescence" is that stage following the early "Go-Go" phase, characterized by rapid growth driven primarily by the founders or key decision-makers.

In the Go-Go phase, it's all hands on deck, with founders taking charge of every aspect to ensure the company's survival and growth. However, as the company evolves into adolescence, a significant shift occurs. The focus transitions from frantic action to more thoughtful, strategic decision-making.

Here's the key sign that your company has successfully navigated through adolescence: the directors are the ones at the helm. Not the founders, not the VPs, and not the board. The directors are the ones running the day to day..

Allow me to break it down for you. Picture a fast-growing company as a locomotive. The VPs and founders are the ones charting the course, setting the direction for the company. On the other hand, directors are the powerhouse, fueling the engine with their dedication to customer care and operational efficiency. While VPs are plotting the course, directors are the ones authentically running the show.

Directors possess remarkable agility. They're integral members of the leadership team, tasked with understanding long-term strategy and translating it into actionable plans for managers and staff. I vividly recall directors approaching my office with fresh ideas, seeking to enhance our business operations and serve our customers better. It was a testament to the time we invested in training our directors to effectively steer the ship.

Adolescence is attained through a dedicated focus on strategic clarity and unwavering commitment to the notion that directors will play a pivotal role in running the business. This involves a level of creativity and letting go in certain areas. The VPs and executives must shift their focus towards laying the track for the future, leaving the day-to-day operations in the capable hands of the directors.

Top-grading the organization is imperative. Every director should possess the knowledge, skills, and experience required for their role. If they don't meet the standard, they must be either trained up or repositioned within or outside the company. This process demands decisiveness and a commitment to the long-term vision.

Cultural fit should never be compromised, even if it means parting ways with a valuable team member. A cohesive culture ensures that everyone is aligned with the company's core values and objectives.

To solidify this transition at my previous companies, we instituted a comprehensive training program, Flight School. This program equipped directors with essential leadership skills, from self-leadership to managing others and leveraging business data. The training was rigorous, with weekly sessions held for ten months of the year.

Remember, while this transition may present challenges, the fruits of your labor will be a stronger, more resilient company. 

As usual, I’m here to help you navigate the complexities of adolescence in your company.

Sincerely,

Rob Craven, scalepassion

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