The Art Of Multiplication, And Not Division.

As successful businesses grow and expand into new markets, there can be a tendency to keep everything under the one roof, under the one leadership structure. But often this can stifle the growth of new businesses and new ideas, and their futures can be dependent on the opportunity to break free and find their own individual paths to success.

Active Knowledge Question:

When, and at what point of time, is it appropriate for a new business to be released and allowed to set its own journey?

There is often a reluctance by leadership to allow new and growing businesses to leave the pre-existing business and to find their own path. But there can be compelling strategic reasons as to why it must leave if its if ever going to succeed, and in many cases just survive.

When it comes to growing a business, multiplication is a good thing as it reflects new and expanding markets. Multiplication should be the goal of every business and established as a very clear principle and practice.

Trying to keep everything under the ‘one roof’ can rapidly lead to a growing bureaucracy and crush the competitiveness of a business.

Bureaucracy tends to form as a business grows bigger in size, as there is a general belief that size requires more regulation and oversight to control actions and behaviour. There are, of course, more effective ways to achieve direction, alignment and focus, which are really the intents of bureaucracy.

When it comes to creating structures that are reflective of bureaucracy, the question to always ask is, how will this support an increase in customer value? If it doesn’t, then it serves no competitive purpose.

Multiplication in business should be seen and treated as an expanding family. They are all independent and live their own life, but they are all connected and will support each other and come to each other’s aid if and as required. Because they are family.

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All the best in the success of your business,

Richard Shrapnel