Growth is a good thing for businesses, no doubt. Then why are we saying just the opposite? Because, it may happen.
In many instances, small organizations develop cultures that dominate their thoughts and actions. In many mom and pop companies (small organizations run by few family members), or a medium sized company having centralized and non-delegated management structure, things can go wrong when there is an unplanned or sudden spur of growth for any reason. Sometimes, big corporations can also fall prey to this phenomenon. Well, this is not totally “unplanned” per se, because every organization, small or big, attempts their best to do better tomorrow than what they did yesterday. However, by the term “unplanned”, we meant the organization(s) was more concerned about making growth happen, rather than making growth sustain afterward. Managing the consequence of growth is more difficult than initiating the growth itself. A growing business, for example, a restaurant, must calculate how many customers would be flocking in after their promotion in the area. Whether the restaurant would be able to maintain the “order-to-serve lead time” at the same level as it was in the pre-growth period. Too much increase in lead time due to failure in service planning would only add to dissatisfaction of customers, making customers stop coming to the restaurant. Mobile service providers, by the same token, must calculate how many incoming calls would be expected to its call centers everyday. Any cost saving measures leading to increase in response time will only add to dissatisfaction of customers.
Specifically, in our country, Teletalk could be cited as a brand that had shown such a phenomenon in the past. With huge demand in the market, they restricted consumers’ access to buying that service by introducing lottery among potential buyers. Later, lottery system was withdrawn and anybody could buy a sim card. Then, after experiencing growth, it could not hold up to the growth figures because timely investment in network coverage did not happen! They had more and more customers who were upset with the poor network coverage, and finally lost many of them.
It turns out that, we need to take care of an integrated plan where both the initiation plan and management of growth should co-exist. Otherwise, growing more would mean loosing more. Can you cite more examples?