When companies have reached a certain size, it becomes increasingly difficult to remain innovative and agile. Size often requires structure and size also needs organization. The founders have to delegate responsibilities and select a team of people who will take on managerial duties. If this initial management hierarchy is not established entrepreneurs become bottlenecks and slow down the progress of their companies. The organization is losing speed.
Multiple "kingdoms" are poison for the organization
Usually, areas, teams, groups, departments or divisions with specific tasks are formed. These organizational units optimize themselves and, if necessary, create new organizational units, substructures and separate their tasks and responsibilities from other areas in order to avoid redundancies. From an initial feeling of company-community, many small feelings of department-community arise.
This is not necessarily problematic and beyond that it is human. Many people cannot live well without a clear professional affiliation. The problem comes up when individual areas lose sight of the big picture. In the course of the increasingly fast-moving economic world and the ongoing digitalization of all industries, it is necessary that companies must be able to adapt to changing conditions. Organizational changes are therefore becoming more of a rule rather than an exception.
And such changes entail challenges for those affected. An executive may lose a leadership position while employees have to find their way into new teams. The longer structures exist, the more often those affected struggle to maintain the status quo. The well-being of the company then falls short of the well-being of a department. It will be even worse if several areas form alliances to support each other and ensure their continued existence. Such small kingdoms are like diseases that can weaken and kill the company.
Mindset is more important than positions
The solution is to invest in the right kind of leadership. Ideally, you will find leaders who do not have to distinguish themselves by their current position. An executive who is seen as a leader on the basis of beliefs and communication skills does not feel threatened if his or her position changes. In addition, these people create an empathic environment for employees. They can therefore lead employees through change in a natural way. In my opinion, the following is crucial: Growing companies need to be particularly careful in selecting their leaders and be prepared to let people go if they develop the wrong mindset. There is no room for selfishness in the new leadership culture.
What do you think? Let me know!