An organizational infrastructure is made up of systems, structures, resources and processes. These components must be capable of meeting the internal needs of a business and the external expectations of its customers. Leaders should conduct a thorough examination of the adequacy of their organizational infrastructure based on where they are now (in terms of revenue) versus where they were at half that revenue. Did the infrastructure growth rate match the revenue growth rate? In visiting multiple slow or steady growing organizations, I noticed a decline in momentum occurring in the same manner as their growth, providing a painful experience for its employees and clients. Fast growing organizations have built a steep incline resulting in a constant momentum carrying them just as quickly in the opposite direction. This continuous trend has been regularly noted throughout my visits to various cities. In one instance, there is a slow and painful decline while in another, there is a rapid decline forcing an organization into a state of shock. Both scenarios have resulted in reverse momentum due to the lack of focus on their organizational infrastructures. In many cases, the lack of focus in either situation renders an organization incapable of servicing clients at levels exceeding the competition. The next step to consider is having the ability to continue adequately supporting the business if the growth continues at its current rate. In this case, “adequately” refers to the ability of your Human Resources Department to keep up the pace without impacting morale or increasing turnover. It also refers to whether or not your organization will be able to continue meeting existing client demand while maintaining quality. Most leaders agree being “adequate” is simply not good enough, so going beyond that level means efforts on achieving continuous improvement and growth need to be developed. You must ask the question, “Does my organization have the capacity to service new demand with increased quality?” It will be nearly impossible to focus on client demand, quality, continuous improvement and growth if a lack of prioritization exists within the organization. In over 90% of the organizations I have worked with, there is a strong culture of “we must do it all.” If an organization takes on everything, then nothing becomes the priority. Employees simply cannot sustain the level of thinking, planning, execution and delivery required without something being sub-optimized. In order to determine whether or not prioritization is happening effectively, determine the percentage of what projects and activities are focused on meeting current demand versus the percent of time spent upgrading your organizational infrastructure for continued growth. As you shift your focus and balance, the prioritization of short-term needs and long-term plans will place your company in a position to maintain momentum toward a sustainable future.

A Critical Factor in the Declining Momentum within Small to Mid-Size Companies