Scaling a Hypergrowth Enterprise – Part 4 (Process)

This is the 4th in a series of Posts on the five elements of scaling a hypergrowth enterprise.

A “ONE IN A MILLION” HYPERGROWTH STORY

I was the co-founder and CEO of CyberRep, a CRM and call center company which grew revenues nearly 160x (16,000%) to over $80 million over a 9 year period.  In the 8 years since we sold CyberRep, the organization has grown an additional 20x (2000%) to over $1.6 billion in annual revenues.  Yes, that’s “billion” with a “B.” So, over a 17 year period, this enterprise grew 3200x, or 320,000%.  I’m not a business historian or a statistician, but I would bet that these numbers would put our little startup from 1992 in the “better than one in a million” category of organizations that have experienced this level of growth.

In Part 1 of this series, I talked about People as the first of 5 key elements for scaling a hypergrowth company.  In Part 2 of this series, we discussed Culture, and in Part 3, we examined Scalable Customers. The fourth key element in scaling a hypergrowth enterprise is Process.

THE BENEFITS OF PROCESS

A critical success factor in our ability to grow the business was our commitment to mapping and implementing all of our key business processes.  The 3 key benefits to this were:  1.  We were able to dissect HOW we were doing certain things, and thereby make improvements along the way (process engineering, in essence) 2.  We were now able to “cookie cut” or repeat business processes that were vitally important to our business and our customers (improved business operations), and 3.  We minimized errors and were more consistent in our service delivery (happy customers!).

We didn’t get bogged down in the “flavor” of process engineering or documentation, a la TQM, ISO, or Six Sigma.  We just did the best we could, got them down on paper, trained our people, and put in place measurements to monitor our adherence to the processes.

You may think you are too small to create processes for everything.  In fact, this may even seem to be a waste of time for a startup that has limited resources and “other” more important priorities.  But the simple fact is that every organization, whether a startup or Fortune 100 company, will benefit from developing and implementing SOME key processes.  As a company grows, it becomes imperative to document more and more proceses in order to establish a firm foundation for hypergrowth.

THE “PROCESS PROCESS” – THE WHAT AND THE HOW

At my company, we documented and implemented close to 200 different KEY business processes.  This was a very time consuming task, but once completed, maintaining and adding to our library was relatively easy.  We had processes for things such as business acceptance, hiring, internal communications, various types of training, employee suggestions, innovation, client reviews, different kinds of reporting, and maintaining & upgrading IT and telecom systems, for example.  We even had a process for developing and rolling out processes, the “process process.”

Who’s responsible for the process process?  We were lucky in that our COO was a TQM expert and a trained process engineer, so he owned the process process.  I would suggest that a C-level player in your organization take ownership for sure.  The process process is so critical to winning that it deserves C-level attention and sponsorship.

We assigned a process champion for each process, who was responsible for gathering the information and procedures, as well as getting buy in from the people who would be most affected by the process, e.g. the people who had to follow the process.  I do NOT recommend having one person create processes in a vacuum because the most difficult thing about doing processes is NOT the documentation.  It’s the actual implementation, where you put theory into practice. Where people are involved, the easiest way to gain adoption is to have a cross-section of people involved in all aspects of the planning and implementation of each process.

Do it, Implement It, and Live it.  In order to make the process process work, you need to be serious and consistent about your commitment to it.  Pay especially close attention to the implementation.  Keep monitoring and measuring for the first 60 days or so to insure compliance.  And live it!  When your team sees its top leaders embracing this, or any initiative for that matter, it becomes ingrained into the organization’s culture, and becomes a matter of individual, team, and corporate habit.  And a funny thing will happen:  the discipline that your team puts into the process process will lead to hypergrowth, as your existing scalable clients grow, and your business operations run more smoothly.

Thanks very much for reading.  Please tell me what you think.  How do you see your organization getting more disciplined about the process process?  Which specific processes you have had success or challenges with implementing?  What are your ideas on how a company can improve its “process process”?

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