Tag Archives: methods

The Second Sea Change

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As the organization moves from Startup to Go-Go, the second sea change occurs. The Startup always struggles with revenue. “Please find a customer to buy my product or service.” And, these first sales don’t even have to be profitable sales, because all the expenses go on a credit card, line of credit, whatever it takes to get the organization out of ground zero.

Every sale for the Startup is a one-off, tweaking the product or service to each individual customer. Those Startups that survive (make enough sales) find that as volume increases, they can no longer treat every sale from scratch, they must institute methods and processes. The struggle shifts from a revenue problem to a profit problem. The shear volume of the successful Startup becomes its biggest problem. A few unprofitable sales for the Startup becomes a staggering amount of red-ink for Go-Go.

And, profit becomes elusive.

The first sea change was a shift from organizing the work around the people to organizing the people around the work. The second sea change is a shift from organizing the work around methods and processes to organizing methods and processes into a system. It is only this second sea change where the organization begins to see its first signs of sustained profitability.

Whose Policy Book Is It?

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“I have been working on this policy book, documenting our methods and processes so we can use them in our training programs,” Javier explained.

“Outstanding,” I replied. “So what gives?”

“We finished the book three months ago, but I can’t get the team to take it seriously. We have a meeting, everyone agrees and follows the process for the better part of a morning. But, as soon as there is the slightest hiccup, they go back to the old way and trash talk the policy book. Then I have another meeting where I sound like the critical parent.”

“Maybe you are the critical parent,” I nodded.

“Maybe so, but someone has to be the adult in the room,” Javier pushed back.

“Says who?” I asked.

“Well, I’m the manager, so I guess – says me.”

“You just told me the team doesn’t listen to you.”

“They don’t!” Javier pushed back.

“So, when the team abandons the policy book and goes back to their own experience, who do they rely on for guidance?”

“Well, they are hiding from me, so, they rely on each other and their own judgement.”

“Tell me, Javier, who wrote the policy book?”

“I did. I stayed late every night for a month. I am pretty proud of the thinking behind it. Some of my best work.”

“But none of your team’s experience, none of your team’s judgement is in the book. So, where do you think the problem is?” -Tom