The sun is just streaming in over Sandia Peak here in Albuquerque, NM. Working with Charlie Hawkins’ Vistage groups on the research of Elliott Jaques and his findings on Time Span.

From the Ask Tom mailbag:

Question:
We have managed to find a niche in this recession where we think we can grow. We are ready to scale. Understanding the layers of the organization, we believe we have Stratum I and Stratum IV (capable) people, missing layers II and III. What is our next move? Do we grow the company up from the bottom or from the top down?

Response:
Let’s describe the trouble and let you pick your poison.

A quick review of Stratum roles (in the discipline of management).
Stratum I – Production, assembling a product or delivering a service.
Stratum II – Making sure production gets done, supervisory role.
Stratum III – Creating, monitoring and improving systems.
Stratum IV – Integration, bringing an organizations different disciplines into a whole system.

Right now, your perceive that you are effectively delivering a product or service into your market. That market is responding and appears to have an appetite for more (even in this difficult economy).

From a role perspective, you have a layer of Stratum I pumping out Production and a layer of Stratum IV wise guys who think they have a tiger by the tail. I will concede that your Stratum IV (capable) people are looking down the road 2-5 years and that’s why they can see the tiger.

The trouble will be in growing. BTW, this trouble is normal, natural and unavoidable. And you still have to grow through it. Your excited Stratum IV hunters in heat will spearhead a sales effort and start raising your volume (product or service). This will outstrip your Stratum I abilities to control both pace and quality. You will suffer difficulties in scheduling to meet demand and quality control to meet specifications.

This volume will create the need to look ahead (three months plus) and monitor production’s pace and quality. Specific processes must be developed, documented and trained to insure we are working production on time and within spec. This is clearly a Stratum II role. In the beginning, one of your Stratum IV wise guys will step in and temporarily fill the gap. This term will be short-lived as boredom in the role sets in, necessitating the need to hire a proper Stratum II supervisor.

This same scenario will play itself out again as volume and market increases. The need to look out (twelve months plus), to invest in systems, procure capital equipment, re-arrange production resources for efficiency will draw one of your Stratum IV (capable) honchos into the mix. There will be temporary challenge creating these systems, but likely, the discipline to monitor and maintain those systems will require the hiring of a proper Stratum III (capable) manager.

Building this infrastructure will be dictated by the time between hope and reality (reality always wins). My counsel would be to clearly define your goals (milestones) and watch for follow-through indicators for your growing market. Do not hire on hope, hire on confirmation of indicators.

Keep in touch. -TF