“If you’re not growing, you’re dying” is one of those overused phrases that still manages to hit home. Why? Because flat business growth isn’t just unsustainable—it’s a flashing neon sign of deeper issues. Inflation erodes profits, competitors steal market share, and ambitious employees look elsewhere for opportunities.
Here’s the truth: If your business isn’t growing, it’s not the economy’s fault, your industry’s fault, or your employees’ fault. The real issue could be your business leadership strategy.
Why Flat Growth Happens
Growth is natural. All living things—from trees to tiny microbes—are wired to grow. Company growth strategies should reflect this reality because a stagnant business isn’t just standing still—it’s falling behind.
Companies don’t stagnate passively; they stagnate because of specific leadership decisions. Whether it’s creating bottlenecks, failing to delegate, or promoting the wrong people, businesses decompose, fossilize, or combust based on these missteps.
Here’s how it happens:
1. Decomposition
Promoting an indecisive or inexperienced leader causes a domino effect: A-players leave for better opportunities, leaving you with B- and C-players. Losing key employees disrupts your team dynamics and cash flow. When this talent exodus becomes a flood, the company starts to decompose.
The Function Ownership Chart™ can be an invaluable tool here. It provides clarity on who is accountable for each function in your business, ensuring that no critical area is left in the hands of underperformers.
2. Fossilization
When companies avoid firing underperforming employees, they risk fossilizing into bureaucratic mediocrity. This often happens in government organizations, nonprofits, or lifestyle businesses that tolerate stagnation instead of embracing performance-driven leadership. Over time, these companies become lifeless entities, unable to innovate or thrive.
3. Combustion
Promoting an A-player without giving them the tools to succeed can cause burnout. Without the ability to hire strong team members or remove underperformers, even the most talented leaders will struggle. Leadership burnout from poor delegation policies and ineffective team management is a major growth killer.
The Function Finder Chart™ helps identify gaps and ensure every leader has the right resources and team dynamics to excel, preventing leadership burnout and fostering a more supportive environment.
Why CEOs Allow This to Happen
So why would a CEO or business owner allow these issues? There are several reasons:
- Personal Reluctance: It’s hard to fire friends, family members, or long-term employees—even when it’s the right decision. Owners often avoid this uncomfortable task, hoping the problem will resolve itself.
- Office Politics: At lower levels, team members may tolerate underperformers due to workplace dynamics, union pressures, or aggressive diversity quotas.
- Hierarchical Weakness: Weak leaders shy away from hiring A-players out of fear they’ll be replaced. Others lack the charisma to attract high-performing employees.
How to Prevent Bottlenecks and Drive Growth
To prevent these pitfalls, focus on business growth strategies that foster innovation and accountability:
- Hire competent, motivated leaders who align with your company values.
- Build high-performing teams by attracting and retaining A-players.
- Embrace effective delegation techniques to empower leaders and reduce bottlenecks.
By prioritizing these organizational development strategies, you’ll create a business environment that thrives naturally.
Incorporating tools like the Mentor Meeting Model™ can also play a vital role. By creating structured, meaningful conversations between leaders and their teams, you can address challenges early and foster continuous improvement.
Take the Next Step
Ready to revitalize your company? My new book, Summit OS: A Fable – One Company’s Journey to the Top of the Mountain, dives into these topics with actionable examples and proven strategies. Get your free download here and discover how to foster sustainable business growth without the bottlenecks.
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