The challenges of growing companies

I have started working for a brief period of time in a medium-big company. Then I moved to a micro organization (actually I was the first employee).

When in you work in a very small company there are a lot of difficult things but there are also a lot of opportunities. You have to be flexible and be able to do everything, but at the same time you can take decisions very quickly. You cannot rely on specialized teamwork, but you could easily have an overview of everything that is happening around the company. You have to deal with a lot of day by day problems, but at the same time you have the opportunity to explore all the subjects and problems that a normal business faces.

It is clear that because there is a leakage of specialization, the general efficiency of the company is very low especially from the structural point of view, but at the same time, if you are competitive (and you have to be in order to survive) you can create big opportunities leveraging on the flexibility and your ability to respond to niche market needs.

And then the company grows. And everything changes. And everything has to change. Moreover, a lot of people working in the company feels the need for a change.

The change from a small company to a medium one is really difficult. From one side there is the need of more structure, the need of clear directions, the need to be better organized. On the other side there is the risk to lose flexibility, to feel the pressure of strict rules or to be less involved and informed about what’s going on.

Unfortunately during this transition the growth of the company generally absorbs a lot of cash and resources in general, so the situation is even more challenging.

The growth of the company is a difficult moment at all levels of the company, for the workers, for the employees, for the managers and for the top executives too. The workers are less and less involved in the interaction with managers and employees but in general their work tends to be more organized and structured (at least in the long run). The employees are required to be more specialized and to focus more in some skills and at the same time to interact with more people and more departments within the company. Managers have less freedom but at the same time they are less involved in the work itself and more responsible for the organization of the work environment and for creating the right synergies between the different departments.

For the top managers and for the executive there should be a transition too. This last one is very important because is the main driver for the change of the company. Without it, the company will be in trouble. The company needs more structure and the flow of information have to be more clear, more easy to be understood at all levels.

A company could decide to remain small, and in some industries this could be a good strategy. But in most cases the growth of a company is the only way to be very competitive in today challenging world. The transition from a small to a medium and then to a big company is not easy at all and involves all the levels of the organization. But at the same time it could be a good opportunity. Managing it in the best way could create solid basis for a leading company of the future competitive globalized world.