Is yours too big? | Issue #200
Why size matters when it comes to your Executive Team
Simple question. How big is your Executive team? Five people? Eight? Twelve? This is important because the more extensive your top team, the less effective they’re likely to be. The sweet spot is around five team members. Big enough to have a range of skills and abilities. Small enough to be nimble and quick.
Only this week, I was on a call to a CEO prospect. ‘I need your help Dom’, he said. ‘As the business has grown, so has my Executive team. It’s got twelve people on it’. No surprise there. It’s a familiar conversation. But it needs some deliberate attention. If you have exciting plans to grow, you’re going to be hampered by a big, unwieldy team. And you’ll frustrate your top performers. You need to sort it. Quickly.
How to Become a Hidden Champion with Hermann Simon
Do you aspire for your company to become a Hidden Champion?
Hidden champions are what businessman and bestselling author, Hermann Simon, describes as medium-sized, unknown companies with annual revenues under $5 billion that have quietly, under the radar, become world market leaders in their respective industries.
Having previously written about hidden champions in his bestselling book, Hidden Champions, Hermann now explores China’s continued impact on the business world since its recent meteoric rise in the global business and economic sphere.
So, whether your company is a “Hidden Champion”, or aspires to be one, don’t miss Hermann on this week’s episode of The Melting Pot.
The #1 podcast for entrepreneurial consultants who want to build a profitable, scalable and strategic consulting business.
In a review of over 2000 academic studies on the impact of purpose on equity returns (yes, there are over 2000 articles on this topic!?) the authors found 63% of studies found a positive correlation (vs 8% that found a negative correlation).
The Great Resignation and The Great Migration have elevated the importance of effective and actionable succession planning. But you’re not alone if you feel like your organization hasn’t found a process you’re confident in. Many leaders have yet to figure out the best way to navigate succession planning, spending too many hours in spreadsheets that go nowhere. What’s troubling is that the most important part of a succession plan—the actual plan!—is often overlooked.
How effective is your sales and marketing spend? Are you even measuring it? Many businesses aren’t, and this typically leads to an underspend. Firms are frustrated by a lack of growth but are not spending enough on S&M. According to this analysis, the typical SaaS company on median generated $0.67 of new revenue for every dollar of marketing spend.
“Hidden Champions” are medium-sized, unknown companies with annual revenues under $5 billion that have quietly, under the radar, become world market leaders in their respective industries. In this new instalment to his worldwide bestselling Hidden Champions volumes, Hermann Simon takes readers on in-depth exploration of the ever changing operating conditions and the greater uncertainty and volatility that defines the global business sphere over the next ten years. In particular, in this book he focuses on China’s continued impact on the business world since its rise in the global business and economic sphere over recent decades. In this regard, Dr. Simon shows the reader how the current status evolved, and then offers concrete and actionable recommendations.
There are hidden laws at work in every aspect of your business. Understand them, and you can create extraordinary growth. Ignore them, and you run the risk of becoming another statistic. It’s become almost cliché: 8 out of every 10 new ventures fail. Of the ones that succeed, how many truly thrive-for the long run? And of those that thrive, how many continually overcome their growth hurdles … and ultimately scale, with meaning, purpose, and profitability? The answer, sadly, is not many. Author Lex Sisney is on a mission to change that picture. After more than a decade spent leading and coaching high-growth technology companies, Lex discovered that the companies that thrive do so in accordance with 6 Laws – universal principles that govern the success or failure of every individual, team, and organization.
MEANINGFUL ACTION FOR MONDAY
Reduce your leadership team and have better meetings
There is a continuum between enquiry and advocacy. The problem with large leadership teams is that there’s no enquiring; there is only advocacy. In small groups, everybody has enough room to talk. In a large team, people say what they have to, but there is no enquiry. You need to get your leadership team down to the CEO and four to five people. Your meetings will be better, and you can make strategic decisions. And, you’ll get the chance to go deep and answer some questions.
Join Friday Pulse founder, Nic Marks to discuss if getting to a state of Hybrid Happiness is realistic at 4pm BST on Tuesday 2 August 2022. As always, there will be plenty of time for Q&A so come prepared!
Business Strategy is an online course that enables anyone to think and act strategically. You’ll learn an effective, easy-to-grasp framework that some of the world’s best companies use to create value and achieve outstanding financial performance.
Taught by Professor Feliz Oberholzer-Gee, the Business Strategy features six weeks of content and weekly exercises, enabling the opportunity to put learning into practice. Participants will learn how to evaluate trade-offs and align, prioritize, and formulate strategic initiatives for the greatest business impact.
Quote of the week
“If you can’t feed a team with two pizzas, it’s too large.”Jeff Bezos
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.