Consider the story of a professional services firm that was dominating in their current market. They had built a strong regional business base and wanted to keep their double-digit growth trajectory. They realized that expansion was needed.
What did they do? Working with a business advisor, the president projected a multi-year growth acceleration plan that expanded the firm’s national reach, using both organic and acquisition growth. They also looked at the organization structure and what would be needed in terms of a human resources strategy to meet the growth plan.
But the president soon realized that the current vice president of finance and accounting had no experience in acquisitions or seeking outside capital. The president then elected to elevate the finance role on the leadership team and hired a CFO, retaining the vice president of finance and accounting to lead day-to-day operations.
Not only that, but the head of sales also was carrying the entire firm’s marketing responsibilities. Now, focused on a national approach and anticipating acquisitions, they hired a head of marketing to lead sales, marketing, and brand alignment. These leadership changes made the management team stronger and set up for success.
Bearing that story in mind, with 2023 halfway behind us, ask yourself as an owner/CEO:
- How are your growth plans evolving for 2023?
- Is the leadership surrounding you delivering in all areas of your business?
- As you look out to 2024, will your leadership team be able to sustain momentum picked up in 2023?
- Do you trust the leaders you have hired to execute their goals, or do you find yourself continually stepping in?
- If so, perhaps the first step is seeking a business advisor to objectively work with you to look at your business, and to help assess your leadership team against your growth strategy.
The phrase “what got you here won’t get you there” is played out in hundreds of middle-market companies every year. As an owner/CEO, the people who have helped your company reach your current levels of revenue, customer base, marketing reach, technology, or operations may not be the same ones to achieve aspirational double-digit growth plans.
There’s no room for those in leadership roles to “learn on the job” in a rapid growth environment when you’re in the middle of innovative product development, market expansion, and customer acquisition and retention. To deliver excellent customer experiences while minding expenses and cashflow for sustained growth, companies that experience revenue expansion from $10M to $30M to $50M need to stay ahead by scaling the businesses internally.
Successful CEOs and owners are realistic about their own strengths and gaps. They surround themselves with an experienced and capable leadership team that can mitigate your weaknesses and scale the organization. This means bringing aboard executives who have led in fast-growth environments and can effectively anticipate needs before they arise.
Let Newport help you recruit team members with that kind of successful track record. Our CEO Business Advisory practice holds a deep bench of experienced C-suite executives to help you grow, de-risk and realize your company value.