When it comes to organizational strategic management, not all experts agree that growth will always yield positive outcomes. Hess (2012) points out, for instance, that growth can cause staff members anxiety and stress. In the eyes of the employees, for example, growth can be perceived as having to learn new processes, changing controls, and incorporating a new culture. In addition, it can create risks, effect quality outputs and result in financial structural changes. Furthermore, it can affect customers negatively and even destroy a company’s reputation.
When Coca-Cola engaged in a growth strategy that included changing their formula, for example, the general consensus was why change something that already worked? As a result of this tactic, rather than achieving the desired outcome they hoped for, consumers were not supportive of the new strategy and Coke went back to their original formula. In other words, if growth strategies are not implemented and managed competently, growth can contaminate a company’s value and in extreme cases, even bankrupt them (Hess, 2012).
In short, bigger is not always better because of the complexities involved. The bottom line is that growth is change, plain and simple. If managed properly with efficient systems devised to operate at maximum outputs, it will decrease the likelihood of errors that occur which can in turn, result in the production of evolutionary outputs. This can transpire, as long as the firm and its staff members acknowledge that running a successful business is a continual learning process; one which requires discipline, efficient methodologies, and effective systems that are in place to support the firm’s intentions and vision. In conclusion, the best growth strategies are well-planned because they provide the clearest road maps that will lead a company to higher performance outcomes more quickly because of the processes and systems that are set in action to support them.
That’s it for this week! Have a great weekend and keep searching for innovative ways to keep organized!
Readers are plentiful; thinkers are rare. – Harriet Martineau
Hess, E. (2012). Grow to greatness. Stanford, CA: Standford University Press.