Quotes from the book: Do Scale.
Scaling was originally developed as a term used in engineering.
For the purposes of this book, will use a specific definition: scalability is the ability overtime to sustainably grown your organization to whatever size your industry or sector will allow, in which market segments you choose to engage in.
There are two types of growth: exponential and linear. The key difference between the two is their primary focus.
Exponential growth is achieved by maximizing market share in the shortest achievable time span.
Linear growth is that which is achieved in any manner other than through a primary focus on maximizing market share.
Exponential growth can be planned or unplanned. Unplanned exponential growth Can destroy an organization if its leadership is caught unaware.Exponential growth can be
There is a difference between sustainable exponential growth (scaling) and artificially increasing market size (flipping).
Flipping can be a much faster way to grow a business, but it can be risky, as its aftermath is much less predictable.
Flipping is usually achieved by buying customers, either by undercut and competitors and pricing the product or service at a loss, or spending large sums on marketing and advertising, again at a net loss.
There are two main reasons for flipping: either to sell the artificially scale organization to a competitor or to attract investment.
The mindset between growers, scalers and flippers is different.The
There are two myths that the rail scalability: the myth of the magical start up in the myth of the mystical founder.
If your business stays as a start up for too long, it is guaranteed to fail. The only valid strategy for a start up is to stop being one.
Entrepreneurs have two key characteristics: they are driven by the need for freedom and autonomy; and they greatly trust their gut instincts.
To be a Scalable leader, apply the five golden rules to rein in your golden gut.
The need to be focused and disciplined can frequently causes a visionary leader to be claustrophobic, leading to pent-up frustration, and ultimately a volatile explosion.
It’s important to find other people to do the boring but important task, even if you think you know more about it than anyone else.
Getting to scalability isn’t about putting perfect procedures in place, it’s about making good progress over time.
During early organic growth we say yes to everything, then deliver on our promise by flock balling our way to success.
It’s heroic leader ship is in scalable, enduring a stage of growth called white water, the organization begins to become overwhelmed by complexity, and starts to systematically make mistakes and drop the ball.
The new approach to decision-making is called high-quality team-based decision making and involves reversing the top processes that were so successful during early growth.
Begin by understanding that your org chart forms the basis for the machine for decision making.
We need to start by reviewing the actual org chart for anything that is incorrect, ambiguous or not working, and identify any omissions that are needed now or needed for us to achieve scalability.
Next, we need to re-defined the job specs and move away from heads (what the employee actually does) to hats (what is required of them for the organization to move forward and scale).
Finally, we need to review our meetings inventory to ensure each one is relevant, efficient and effective.
Once decisions are made, they must be upheld by the entire decision-making team. No one else in the organization should be able to get a dollar bill between you.
Decision making teams must be ruthlessly constructive. This means ensuring everyone is heard, provided they are communicating in a constructive manner.
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