Tuesday, 9 June 2009

Growth fuels the organization to even greater growth

The situations of Bill Carter and Susan illustrate both the business and personal consequences of being part of a business that is growing - or one that is not.

With growth, the organization expands and people can build a career and a future. Growth enables a business to get the best people and retain them. People who see personal growth opportunities have more energy, better morale, and enhanced self-confidence. Growing companies expand into new markets and market segments, new regions, and even new countries. Not only does all that create wonderful opportunities for talented people, but also the growth taps into all the latent psychological energy that is buried inside the employees, and the release of all that previously contained power fuels the organization to even greater growth.

The contrast to a company that isn't growing is stark. First, there is limited room for advancement. Susan could take a step down to join a growing company, convinced - rightly so, as it turned out - that she still would end up climbing further and faster up the corporate ladder at a firm tha was increasing the top line and not shrinking. Bill Carter has no such options. Susan is excited to go to work. By contrast, as Bill is learning, it's frustrating to be employed by a company that seems to be going downhill. There is no excitement as you walk through the halls. No emotional energy. Your entire workday is spent feeling as if you are moving underwater.

When there is no growth, a negative psychology permeates the organization. The best people spend a significant part of their time looking for a job, and they leave once they find one. Those that remain make macabre jokes about what form the next round of corporate cost-cutting will take and devote a large part of their days to infighting to make sure that theirs will not be the next head to roll when the cost cutting ax falls again, as it inevitably will.

If you are not in a growth situation, you are in a limiting situation.

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