Why is it so hard to successfully grow in an industry that is expanding, has less barriers to entry than many other industries, and is nationally and globally transportable?
Leadership seems to be the key.
Important research and analysis has recently been published by Mike Cleland of Chartered Path and Barry Asin of Staffing Industry Analysts in their book “Breaking Through – Leadership Disciplines from Top Performing Staffing Firms” ISBN: 978-1-939753-04-5
This is an important book. Good information exists on the staffing industry – we know its size, performance, structure and challenges. We also know the leading industry participants, their scope of operations and the relative size of operations.
But until now there has been little information on what makes some companies successful, the phases those companies grow through, and the leadership attributes of those high performing entities.
A growth maturity model has been defined to map the phases of growth that a company can potentially grow through against the leadership maturity – the amount of complexity the leadership team can profitably scale.
The growth phases are as follows.
Growth of the business and movement from one growth phase to another does not happen without significant awareness and change for the chief executive and the leadership team. Effective leadership is required for growth. If the executive does not change then the company will not be able grow beyond the leader’s individual limitations.
The impact of ineffective leadership is often underestimated or ignored, especially on the rising tide of strong economic conditions where the health and competitiveness of the organisation can be hidden from view by respectable company growth and performance. Rigorous benchmarking and external review may identify sales, operational and financial health issues in the company, as these health issues can slowly seep into a company and leave it in a vulnerable position.
Cleland and Asin have identified 5 leadership disciplines that high performing staffing companies have in common. These are Commitment, Direction, Culture, Talent Development, and Execution.
These leadership disciplines are in order from more strategic (Commitment and Direction) to more tactical.
The benefit of this analysis is that companies can now assess the strengths and weaknesses of their company (their leadership) to understand where they need to focus to have the greatest chance of successful growth. For many chief executives, there will be a clear realisation that the breadth of thinking from the leadership team and the leader’s view of the company is insufficient. For many a long road will be in front of them to bring the company and its leadership into the right state.
The book provides in depth interviews with a range of companies that have been successful and have encountered challenges, successes and changes on their journey.
We are often asked about growth and the wisdom of unrelenting focus on building a bigger and better business. Is it just growth for growth’s sake?
A business leader has many stakeholders that rely upon, or even demand, growth and all the complexity that brings. The most important are the leadership team and the staff – they want to be inspired and engaged in a successful company that will give them opportunities. The staffing industry shows that stagnant companies are treated harshly.
Breaking Through is unambiguous: “There is no status quo for your staffing business. Either you grow your business or watch it shrink; standing still is not an option.”