Who doesn’t dream of meteoric growth for their business? It promises a consequent development which reassures the leaders. But she envisions new challenges and knowing how to respond to very different issues at the start of the business. Hyper growth generates a certain satisfaction but it requires reviewing its entire organization, its recruitment, its management of funds. In an Ifop survey for KPMG, 100 leaders of high-growth and hyper-growth companies shared their experience with this situation.
A consequence of employee investment
The hyper growth of a business involves many changes in a very short time. It generally comes from a craze for a product or a service thanks to a dynamic of the business sector of the company. Of the panel of one hundred executives questioned by Ifop, 45% of them mention this cause. In second position, the reason for hyper growth is mainly explained by a good corporate culture and a good state of mind among employees for 40% of managers. Employees play a significant role in the development of a company. An investment on the part of everyone can lead to hyper growth. It can be considered good news, but it requires securing different parts of the business. If it is not controlled, the consequences can be catastrophic for the continuation of the activity. For the majority of executives surveyed, growth was stimulated by internal initiatives from the resources of the company and the experts that make it up.
Difficulties in sustaining growth
A strong business growth requires a review of the organization of the structure. A modification of the activity generates a transformation of the teams, but also a development of services which sometimes did not exist before. In order not to fail in the face of growth, companies are obliged to review their plan. Of all the executives questioned in the Ifop study, 57% said they had difficulties in recruiting to meet the needs of the company. 37% mentioned in particular a problem in terms of cash management and for 22% internal governance posed a problem during the growth of the company. It turns out to be relatively complicated to face it without being impacted on various fronts. It involves a change in the functions of the company, particularly in terms of production (33%), marketing and trade (36%) and research and development (22%). Such changes are forcing companies to rethink their strategy and recruit to meet growing needs. Hyper growth therefore requires special attention on the recruitment and the position to adopt vis-à-vis the market.
What answers to cope with hyper growth?
For the majority of executives questioned within the study, the functions mentioned above (production, marketing and sales, R&D) must be developed accordingly to maintain the high rate of growth. These functions take precedence for a company and reviewing their layout is important in order not to lose the pace obtained. From this perspective, the leaders believe that it is useful to invest in new solutions to stay the course. 37% say they want to invest in production and / or R&D tools over the next few years, 27% are considering the internationalization of their company and 35% plan to strengthen performance management and management control. For these entrepreneurs, these steps are essential for the proper development of their structure and to be able to continue to envisage hyper growth over several years.
As with any change, everyday tools must also be rethought within companies. Technological issues play an important role in maintaining competitiveness within the market. For 23%, the cloud and dematerialization make it possible to maintain strong growth. This is accompanied by the implementation of new tools to make life easier for customers, but also for employees. Others instead plan to focus on robotization, cybersecurity, Big Data analysis or the implementation of an AI (Artificial Intelligence). For businesses, sustaining growth is achieved through digital transformation. It is mainly used by employees to digitize internal functions and thus fit into the era of time. 57% plan to invest or have already done so in “Technological tools to accelerate the digitalization of internal functions” and 54% in “Digital training for their employees”. As specified in the study, hyper growth is developing mainly thanks to employees and the corporate culture. The objective for structures is to facilitate the work of employees with digital solutions. They are the very essence of the growth of a company and the leaders understood this well by making the choice to invest in HR solutions. Among those polled, 36% and 38% respectively believe that it is necessary to set up initiatives for the well-being and the working environment as for the rest, he wishes to bet on the profit-sharing of the best talents.
Hyper-growth often remains a satisfactory stage for a manager, but it requires reviewing the organization of his company. Managers adapt the situation with varied and essential solutions such as prioritizing new functions but also investing in new tools and above all focusing on employees, the ultimate essence of a company.