What is the Scaling Up Methodology?
Scaling Up is an internationally proven framework that has helped over 70,000 companies transform into industry dominating businesses. The Scaling Up methodology is a powerful framework designed to propel your business to new heights.
Let’s dive into the essentials of this game-changing approach. We’ll cover:
The Four Key Decisions
Scaling up is centred on the Four Decisions® methodology. These decisions are People, Strategy, Execution, and Cash.
In the Scaling Up methodology, people are not just employees; they are the driving force behind success. To grow successfully, you need to build a team of A-players. These are individuals who excel in their current role, and align strongly with your company’s core values.
Building high-performance teams and nurturing a positive company culture are integral to fostering innovation and growth. Creating and sustaining a unique culture is also a valuation driver.
You can read more about A-players HERE.
People challenges impact the culture of your company. People issues can include conflicts with a key employee that’s disrupting the rest of the business’s effectiveness. These people have a ripple effect on the entire company, and need to be addressed to take your business to the next level.
Until leaders settle the rumbling people issues, they’ll continue to consume a large amount of emotional energy, making it difficult to focus on the other three main decisions. Focus on getting the right people doing the right things with clear accountabilities and metrics.
A solid strategy is the North Star guiding your business through uncharted territories. Scaling Up emphasises the importance of a clear and compelling strategy that aligns with your company’s vision. It’s about setting a course that navigates challenges and capitalises on opportunities. As Scaling Up Certified Coaches, we use the One Page Strategic Plan to develop your industry-dominating strategy.
Slowing revenue growth is an early warning signal that the company’s strategy needs to be re-visited. If your growth isn’t up to speed, re-evaluate what you’re selling and to whom. A clear strategy aligns everyone and avoids wasting energy on unproductive activities.
Economic uncertainties expose weak strategies which is why we’re seeing many companies re-examining their business models. Innovation and technological advances like AI are also forcing companies to re-visit their strategic decisions in order to make sure they sustain their competitive advantage(s).
Download our One Page Strategic Plan and begin developing your strategy HERE.
The execution of your strategy is about managing your people and their individual priorities and actions. In essence, it’s about turning well-laid plans into tangible results. Making processes smoother, setting priorities, and encouraging accountability are crucial to ensuring successful strategy implementation.
Execution challenges surface when your increasing revenues are not generating increasing profits. Despite capitalising on a unique advantage, companies can triple revenue only to witness a decline in profitability due to poor execution.
The other indication of poor execution is pure hours spent delivering your products or services. With disorganised execution, the company depends on the extraordinary efforts of its people working long hours to meet demand and catch all the dropped balls. Poor execution is equivalent to scaling chaos, which should be avoided at all cost. By refining execution practices, you can enhance profitability while reducing the time needed for everyone to complete their tasks. It also ensures that your hard earned brand reputation is solidly maintained into the future.
Improving how you do things can boost profits and speed up everyone’s work.
The fourth key decision revolves around cash – the lifeblood of any business. Efficient cash flow management, strategic financial decisions, and wise investments are paramount. Understanding the dynamic relationship between cash and growth is essential for businesses aiming to thrive. By making informed decisions about cash allocation, businesses can have the financial fuel needed to support their growth objectives.
Revenue is vanity, profit is sanity and cash is king! Cash is the key to growth. Cash is a reflection of your business’s health. It’s important to ensure your cash flow is sustainable.
By managing the cash decision, you’ll reduce the chaos caused by lack of funds when scaling up.
The Cash Conversion Cycle is a helpful tool to brainstorm ways to increase cash flow. You can download this free tool HERE.
The History of Scaling Up
In 2002, Verne Harnish published a book called ‘Mastering the Rockefeller Habits’. Following this, in 2014 with ‘Scaling Up: How a few companies make it… and why the rest don’t’. Both books became bestsellers. Verne launched the Scaling Up methodology – a framework that has helped over 70,000 companies worldwide scale successfully.
In Scaling Up, Verne Harnish shares practical tools and techniques for building an industry-dominating business. His books are written so frontline employees and senior executives can get aligned in contributing to business growth.
Does Scaling Up work?
As an internationally proven framework, Scaling Up delivers tangible results. The numbers speak for themselves.
Performance 7 have delivered:
- 187.1% average revenue increase for clients over a 24-month period
- $1.4 billion of revenue under management
- 485 new jobs created
- 9.3/10 CEO happiness score
- 148 implementation of the Scaling Up methodology
Don't take it from us, hear what our clients have said:
Scaling Up in Australia
Australian businesses have a golden opportunity to thrive by implementing the Scaling Up methodology. This proven framework, adaptable to diverse industries, fosters innovation, team alignment, and strategic growth.
Performance 7 is Australia’s largest and most successful scaling up coach. We have helped more Australian businesses implement Scaling Up than any other scaling up coach in Australia.
Managing over $1.4 billion in revenue, Performance 7 is a trusted Scaling Up partner for businesses across Australia.
We’ve also created the largest Scaling Up Community in the Southern Hemisphere. This means our clients have access to private networking events and a network of like-minded CEOs.
Are you ready to scale up?
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