This video is a summary of the book Scaling Up by Verne Harnish and should give you an understanding of the subjects and key concepts in the book. I’m going to talk about who the book is intended for, what problems it solves and how it solves them and how you can use the book to further your business.
What is Scaling Up?
Scaling Up is Mastering the Rockefeller Habits 2.0. Mastering the Rockefeller Habits 1.0 the first book was released in 2002 as a simple framework and a set of tools that you can use to scale up your business.
I wouldn’t recommend you start with Mastering the Rockefeller Habits and then read Scaling Up, I would skip straight to Scaling Up because within Scaling Up is everything that Gazelles learned in the subsequent 12 years from 2002 till Scaling Up was released in 2014.
I want to take you through 3 key questions now, Who is this book for, What problem does it solves and How does it solve this problem?
Who is this book for?
This book is for entrepreneurs, CEO’s and leadership team members with a growing business who want ideas and tools that they can action immediately. This is not a book where you ask well how do I do this stuff? This book is jam packed full of simple, practical and actionable ideas that you can take away immediately and implement into your business.
What problem does this book solve?
This book solves a problem of complexity in growth organisations. with a micro business of only 2 people there are only 2 levels of communication. As you employ a 3rd person the degrees of complexity increase from 2 to 6 and then with 4 people it quadruples to 24. The complexity increases significantly. Expanding the size of the team from 3 to 4 people increases the size of the team by 33% but it increases the complexity of by 400%. And it just keeps growing exponentially.
This increasing complexity as you scale creates 3 main barriers to scaling a venture.
First Barrier – leadership.
The inability to grow enough leaders throughout the organisation who can delegate and predict.
Second Barrier -a scalable infrastructure.
The lack of systems and structures to handle increasing complexity in communication and decisions.
Third Barrier – market dynamics.
The competitive pressures that build and erode margins as you scale the business.
How does this book solve this problem?
The tools in this book will help you focus on 3 deliverables.
Firstly it reduces the time taken by the leaders in the business to manage by up to 80%
Secondly it focusses the team to generate more market facing activities
Third it focusses the entire team on one single page to drive better execution and results.
To achieve these 3 deliverables there are a set of 4 fundamentals that you must master.
First is People. A set of Core Values that drive all relationship systems and relationship decision making.
Second is Strategy. An effective strategy that really matters to customers and differentiates you from the competition.
Third is Execution. Setting a handful of priorities, establishing qualitative and quantitative data to guide the decision making and establishing a meeting rhythm to drive the right results.
Fourth is Cash. That is paying as much attention to how much every decision impacts cash flow as you would how a decision would impacts revenue or profitability.
Focussing on these 4 fundamentals you are then able to overcome these 3 barriers to growth.
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Music by Dyllas
ABOUT BRAD GILES
I am passionate about growing mid market businesses.
I am a certified Gazelles coach and facilitate strategic planning for leadership teams for some amazing companies across Australia. My background is as an entrepreneur and I believe that entrepreneurship is one of the most noble and yet scariest things you can do.
That’s why I help people, I help CEOs:
1. Build a plan to scale up their business
2. Execute & and be held accountable to their strategic plan
3. Keep focused so that they & their team are working on the critical few things, versus the important many
4. Put in place & use proven systems to build an awesome corporate culture that turns their company into a magnet for great people