Growth is essential for success, yet many businesses face a number of obstacles on the road to expansion. If you company isn’t growing as fast as you predicted then it’s time to take a step back and assess the issues. In many cases there are problems with business processes and operational glitches, and for some companies a lack of finance can be the main contributor to slow business growth.
However, there is usually a common denominator within all of these businesses which are struggling to grow and flourish – a lack of HR management or holes in the HR strategy. Because the effectiveness of your team directly impacts profitability, it plays an important role in business growth. If your company is experiencing a growth stunt see if any of these reasons apply.
The wrong management team
A senior leadership team is the driving force of any company, so if you don’t have the right people in place to promote growth then it simply won’t happen. Investing in leadership is absolutely crucial, and if you’re looking to review job roles and organisation design then you have to start from the top. Assess how well your leadership team deliver and decide whether a management coaching programme would be beneficial, or whether you need to appoint new managers with more experience.
Neglecting organisational structure
If the business isn’t ready for growth then the lack of preparation will cost you in the future. Restructuring the team and assessing job roles and responsibilities can ensure that the company runs as efficiently as possible and is prepared for any expansion. Organisational design plays a huge role in using assets effectively and identifying skills gaps across the board. We recommend a review of organisational structure every 18 months, sometimes more often if experiencing rapid growth.
Fear of collaboration or acquisition
Organic growth is great but it’s not always possible without partnering with similar businesses. Mergers and acquisitions can be a highly successful way to expand so businesses which view this as “selling out” can get left behind in a stage of slow or stationary business growth. If there is a fear of losing a sense of company culture or some of your staff team during a merger, then HR specialists can manage the people related issues.
Because recruiting a member of staff costs so much money and uses up a lot of valuable time, companies with a high turnover can suffer when it comes to company growth. Constantly replacing workforce members is a roadblock to growth and an indicator of further HR problems, so it’s important to address these. Usually there is low staff morale in businesses with a high turnover so if you can solve the issues it will have a positive effect all round.
If growth is important to you then get in touch with our HR specialists who can pinpoint the barriers to company growth.