Because of these needed transitions, it’s often best to have some of the original functional leaders head business units — maybe head up expansion to a new country or lead the launch of a product line — so they can maintain direct operational control.
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• Reduce by 80% the time it takes the top team to manage the business (operational activities)
• Refocus the senior team on market-facing activities
• Realign everyone else (onto the same page) to drive execution and results.
Then you need to evaluate all the key relationships surrounding the business. Would you keep all your existing customers? Are you happy with your investors/bank? Are your vendors supporting you properly? Are your advisors — accountants, lawyers, consultants, and coaches — the best for the size of the organization and future plans? The toughest decisions to make are when the company has outgrown some of these relationships and you need to make changes.
Nothing is tougher and more time-consuming than having to replace people who haven’t kept up with the growth of the business.
CEOs often avoid these decisions because they involve executives who have become dear friends. We recognize that this is a touchy subject, but it must be faced if the organization is to grow. One option is for some of the early team members to help launch a new product or division. They are usually more comfortable in a start-up situation or working on a smaller team. And several of the early leaders might be relieved to have the burden of an increasingly important and complex function taken off their shoulders. You won’t know until you have these crucial conversations.
ACTION: For each key process you’ve identified, decide who within the organization will be accountable. These people are then accountable to the head of operations.