During a recent strategy session with the leadership team of a rapidly growing company, the subject of organizational change came up. Specifically, there was the realization that as the organization grows, its processes, structure and some of its people may change. What will also change is the role of the leadership team and what it will require from the CEO/Owner.
A company’s CEO/Owner carefully and skillfully moves the business through the first three levels of organizational growth: owner/operator, owner/manager, and management organization. To fully realize its growth potential, the leadership team set its sights on Level 4, The Leadership Organization. A key issue/obstacle is the fact that the management style of the CEO, which led the business to Level 3 will no longer be effective.
For most businesses, moving through the first three phases of organizational growth happen almost naturally as the business advances and matures. A majority of businesses reach and remain at Level 3, the “management organization”. The most compelling reason for this is the need for the CEO to recalibrate their leadership style.
In most simple terms, the CEO’s leadership traits that were instrumental in getting the business through the first three levels of growth will cease to be effective as the company attempts to reach Level 4: The Leadership Organization. In fact, these same traits may have the inverse effect and will work against any and all efforts to become a Leadership Organization. To effectively advance, the work of the CEO must move from “running the business” to leading it. There are many factors involved in this, some subtle, some profound.
While some CEO’s recognize the need to make this change (a dose of genuine humility helps!), the actual work of change is difficult and is best advanced with assessment tools and with the help of a skilled facilitator/coach.
For more information on transitioning your leadership and in turn, your business, contact me at firstname.lastname@example.org.