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Why Great Products And No Planning Will Carry A Midsized Firm Only So Far (Before It Crashes)

http://www.forbes.com/sites/robertsher/2013/07/31/why-great-products-and-no-planning-will-carry-a-midsized-firm-only-so-far-before-it-crashes/ What's your take?

Answers

Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
LinkedIn Profile
(Accounting Manager, Dominion Development Group, LLC) |

Sometimes growth happens too quickly. I saw this at a former employer. The company grew exponentially and the marketing, underwriting and other departments were not ready. The result was that the company kept growing, but growth slowed for a period of about two years. Now this company has more underwriters, marketing folks, and offices in the U.S. than I am sure the owners ever dreamed possible in 1999. They failed to plan properly, then hired some heavy hitters in the industry, made other perceived drastic employment changes, and are now more successful, better able to sustain the growth.

The cliché goes: "A failure to plan is a plan to fail." This is true, but it could also be that a failure to plan requires quick planning eventually in order not to fail. Better late than never (another cliché for you).

Perhaps if companies would consider hiring people before they were necessary, adjusting to their anticipated growth, companies would be able to better follow the logic of Robert Sher's post.

Ken Stumder
Title: Finance Director / Controller
Company: Ken Stumder, CPA
(Finance Director / Controller, Ken Stumder, CPA) |

The article covers a theme I've seen covered multiple times. It's difficult for the individual(s) who brought a company into being and gutted it out to where it's a sustainable business to perceive/understand when it's the correct time to build leadership infrastructure. This is when an independent BOD is invaluable.

There is a flip-side to this equation. The trial and error involved with finding the right executives to scale a company to the next level is costly. You often read about individuals who suck more out of a company in the form of high pay, golden parachutes/severance, legal costs, etc. than what they've contributed.

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Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

That is also very true for the entrepreneur who has built the company. Their pay and perks are many times out of line with reality (as is their ego); and like many in the same situation, the house of cards will eventually fail without reinforcing the foundation withamagemt that can act appropriately.

Gerard van Stijn
Title: Head of Finance
Company: Simon Lévelt B.V.
(Head of Finance, Simon Lévelt B.V.) |

Interesting article and I agree with it, but it does seem to me that they are pointing out the obvious.

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