COURSE AND DIRECTION - JANUARY BOOK REVIEW

Leading at the Speed of Growth

A Book Review by Dana Baldwin

LEADING AT THE SPEED OF GROWTH - Journey from Entrepreneur to CEO
by Katherine Catlin and Jana Matthews
Kaufman Center for Entrepreneurial Leadership, Hungry Minds, Inc., 2001
134 pages
$24.95

"What does it take to grow a company?" This book addresses the first of the three factors that the Kaufman Center for Entrepreneurial Leadership has identified that an entrepreneur needs to master to manage growth.

The authors start with the fact that entrepreneurship has exploded in the USA over the last decade. This is followed by their observation that "...the sad reality is that relatively few members of this wave of entrepreneurs will still be in charge when the companies they founded finally break through to success".

Their argument is that too many will fail to transform themselves and their companies as the companies grow. Principally this is because they fail in two ways. First, they fail to change their companies to reflect the changing needs as the company grows. Second, they fail to change themselves as their roles evolve. They hold on to authority, failing to delegate. They fail to hire effective staff and they continue to micromanage. All of these factors can be devastating to a growing company.

To address these nodes of failure, the authors explain the four basic stages of growth.

First is Startup. In this mode, the entrepreneur is devoted to developing the products or services the company will offer. The primary role is as a doer and a decision maker. The whole company revolves around the entrepreneur.

Second is Initial Growth. Here the founder should evolve into a Delegator and a Direction Setter. This requires that the entrepreneur surround himself/herself with capable staff and start to delegate authority. The primary need here is to drive up sales volume.

Third is Rapid Growth. The company must evolve again, with its drive to lead the market. The entrepreneur needs to become a Team Builder, a Coach, a Planner and a Communicator. Leadership is now the overarching requirement. Hiring and developing an effective management team is now the most significant requirement for the founder.

Fourth is Continuous Growth. Now the goal is to dominate the industry. The founder must become a Change Catalyst, an Organization Builder, a Strategic Innovator and the Chief of Culture. The company must jump to the next higher curve, with new growth strategies, the ability to expand into new markets/niches, adding new products and services, and may have to reinvent operations to reflect their higher sales activities.

In each segment, the authors provide key strategies for the entrepreneur. These directions help the reader understand the process, the needs and requirements for personal and company growth. Also shown are helpful hints, observations from leaders who have been in similar circumstances and "Red Flags: Warning Signs That Tell You It's Time to Change Roles". These guidelines are very instructive, helping the reader to understand that the time has arrived to step back, analyze both the operation of the company and the needs of the boss.

An effective, helpful, well-written guide to personal evolution into an effective CEO. Highly recommended reading.

Dana Baldwin is a consultant with Center for Simplified Strategic Planning, Inc. He can be reached via e-mail at baldwin@cssp.com.

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