Ventures progress through different stages, where they prosper until they reach a crisis or pivot point. How an organization addresses these chasms determines if they move on to the next stage, decline, fail, or acquire. Making transitions requires fundamental changes, and business capability must evolve to create and manage systems, controls, and infrastructure. This applies to management practice and a leader's assumptions about the business and the external environment. Life cycles are not always linear, and the transitions to stages can come haphazardly after significant disruptions.
The stages range from initial development to late maturity. Some stay in a particular stage depending on the entrepreneur's goals, skills & resources. Each stage requires different tools, control systems, teams, and leadership techniques to ensure sustainability. Depending on the lifecycle stage, we provide formal needs assessments and tailor unique plans to tackle existing problems and decrease the probability of future issues.
Correspondingly, we determine if a company sale, equity offering, SBA-backed business loan, evolutionary change, merger, spinoff, leadership transition, or re-organization is a viable solution. We tackle the design and implementation of operating systems, departmentalization plans, leadership transitions, succession planning, and transaction advisory for companies in the survival, rapid growth, and maturity stages. For development and start-up ventures, we serve as mentors, coaches, and resource specialists for business model refinement, execution of start-up methodologies, and funding strategies for movement along the venture's life-cycle.
We believe this manageable life-cycle process provides critical insight to unlocking potential in whatever disruption lies ahead. We go into the cave, brave and unafraid, to find and take ownership of the treasures we seek.
The beginning of organizational development. The focus is on viability and identifying sufficient customers to support the organization's existence. Decision-making & ownership are in the hands of one or a few, & the environment is primarily unanalyzable. In this stage, organizations tend to enact or create their environments.
Seek to grow, develop a formalization of structure, and establish distinctive competencies. Goals are formulated primarily to generate enough revenue to continue operations and stay competitive. This stage provides alternatives: grow large and prosper, "hit and miss," earn marginal returns, and fail to generate sufficient revenue to survive. Analyzable
Formalization & control through the bureaucracy. Job descriptions, policies & procedures, & hierarchical reporting relationships are formal. Leaders seek to protect what they have created & focus on planning & strategy, leaving daily operations to middle managers. The goal is collaboration, innovation & creativity as decision-making is decentralized.
Customers' needs are placed above those of organizational members, & there is a desire to return to leaner times. With an inability to meet the external demands of former stages, leaders are concerned with personal goals rather than organizational goals, i.e., retirement. The desire for power & influence erodes viability & profit.
A.R.C.H. Consulting, LLC
Miami & Ocean Reef Club, FL
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A Kershner Family Company
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