| As a company grows to 1,000 orders per day, they enter Phase 3 and begin to formalize their departmental structure. There is too much complexity in the business at this point to allow "looseness" because they company now has too much data, too much money, too many employees, etc to have a casual attitude. If a company can't become more formal, it will undermine the company. They must move to more predictability to keep the distributors and vendors happy A Phase 3 company creates much more structure. They probably have a compliance team, attorneys, and structured purchasing departments. They may begin to break up the company to separate departments. This may even become a physical separation to allow each department the space they need to meet their goals. At this point in growth, the company begins to impose more systems to manage the business to create departmental trust. The output of one department ends up being the input of another, so obviously they want all data to be as accurate as possible. The company becomes much more inwardly focused at Phase 3. They realize that they want to be able to limit their risk and draw power from within. They must attend to company details rather than knowing each individual distributor. They also begin to look at international expansion. Because of this growth, they begin to hire people from within the industry for their experience and what they can bring to the company. |
