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Growingpains
Three imperatives for technology
in a growth business
’13
’14
’15
Fromtheoutside,
growthissexy.
It’sathrillingride
tonewmilestones,
newcustomersand
newcolleagues.
Fromtheinside?
Growthiswayharder
thanitlooks.
It’s a transition from what
your company used to be
to what your company
needs to be.
Ifyou’rethepersonrunning
IT,you’rearguablythesingle
mostimportantperson
inthisexciting,turbulent,
high-riskjourney.
Becausewithout
therightIT,your
companycan’tscale.
Processes break.
Your people get frustrated.
Customers defect.
WiththerightIT,
yourcompanycanfly.
With processes that flex and stretch.
And people who feel empowered instead
of inhibited. And customers who never see
the complexity you’re managing. It’s an
exciting time.
Butalltoooften,forthreebasic
–butcritical–reasons,ITteamsin
growingcompaniesgetoutofsync.
Which means the people leading IT
need to look for ways to:
get processes in sync
get budgets in sync
get strategies in sync
Getprocessesinsync
When companies grow, they don’t
magically leave their inefficiencies
behind. Those inefficiencies just
mutate into bigger issues that
inevitably threaten IT.
Processes that felt like ‘dull aches’
when you were small turn into
‘sharp pains’ when you scale them.
1
Oneexample
Say your company adds some new
salespeople who work remotely.
They’re going to have to hit the road
and hunt for new business.
That means accessing files, delivering
presentations and updating your
internal systems.
But if all those processes were built with
in-house salespeople in mind, scaling
them is going to be tough.
Suddenlyyou’re
scrambling...
How do they get secure access to the network?
How do they print their proposals when they’re
on the road?
Where do they send signed documents once
they’ve closed a deal?
And before you know it, the frustration mounts
andthenewpeoplearen’tmakingenoughsales.
Thelesson
Without process, scale is impossible. But ad-hoc
processes invariably break when companies are
growing rapidly and the fallout usually hits IT.
So before your processes hit the point of inefficiency
and confusion, change them, formalize them and
optimize them for scalability.
Ithelpstoremember
whattheidealprocess
isallabout
“Thepurposeofprocessiscommunication.
Iftherearefivepeopleinyourcompany,you
don’tneedprocess,becauseyoucanjusttalkto
eachother.With4,000people,communication
becomesmoredifficult.Youneedsomething
morerobust—acommunicationbusor,the
conventionaltermforhumancommunication
buses,aprocess.”
Ben Horowitz,FormerCEO,Opsware
Whattodoaboutit
So if the point of process is communication,
then it’s essential that you make sure all
documents and communications are part
of the strategic plan.
Because document management touches
dozens of important processes – the costs
of inefficient document management add
up: on average, companies spend as much
as ten percent of revenue doing it.1
10%
oftheirrevenue
1‘Iknowwhatyou’rethinking’,AngeleBoyd,IndustryAnalystIDC,June2015
Action:
Assess your current approach to document
management and look for ways to make the
most essential documents (digital and paper)
easy to find, easy to store, easy to manage
and easy to send both inside and outside
the organization.
We’ve helped hundreds of growing businesses
assess and optimize the way they manage
their documents, so if you need some
guidance, we’d love to help.
Getbudgetsinsync
More often than not, the IT spend of
growing companies actually shrinks
relative to the company’s growth.1
Because when companies are growing,
they’re usually growing their marketing,
sales and product or service teams first.
1‘Iknowwhatyou’rethinking’,AngeleBoyd,IndustryAnalystIDC,June2015
2
Whichisexcitingforeveryoneelsebutamajor
challengeforIT.
Itmeanstheamount
ofcomplexityyou’re
managingisgrowing
fasterthanyour
resources.
“Thedemandsfromthebusinessbecame
arelentlesswaterfall.Orasmymanagers
referredtoit,‘Drinkingfromthefirehose.’
Theexpectationwasthatwewould
delivernewapplicationsandfunctionality
everythreeweeks.”
Tanni Graichen
Formerexecutivevicepresident
ofIntegratedCardBusiness
andCIOatProvidian
Thelesson
The key to managing more with less is prioritization.
And the key for IT is to work with the business to
prioritize which projects you should be working on.
Clearly define what your team should be managing
internally and what can be outsourced or automated.
Outsourcing can be the savior of the IT group in a
growth company. Look for processes you can snap
off and send out.
Becauseifyouaren’t
optimizingfora
streamlined,agileIT
operationthenyou’re
optimizingforan
inefficientone.
202020192018201720162015
“Deferring the IT
investment that increases
agility isn’t a way to curb
costs, it’s a means of
subsidizing inefficiency.”
Robin Johnson
FormerDellCIO
Whattodoaboutit
MakealistofthecoreITfunctionsand
responsibilitiesyouandyourteamshould
bemanagingbasedon:
–	Theirimportancetothebusiness
–	Andyourteam’sabilitytodeliverthose
servicesefficiently
Onceyou’vedonethat,analyzethe
requestscominginfromthebusiness
anddetermine:
–	Whichlegacyhardwareandsoftware
iscausingthemostproblems
–	WhichITfunctionsaredemanding
themostofyourteam’stime
Comparethetwolistsandyou’llhave
amucheasiertimeclarifyingthelow-
hangingfruitthatcanbefixedwith
outsidehelp,andthecorefunctions
yourteamshouldprioritize.
Getstrategiesinsync
Whenyouworkinasmallcompany,
communicationiseasy.It’snatural
foreveryonetobeonthesamepage.
Butwhencompaniesgrow,thegaps
betweentheirdepartmentsgrow
too.Andifyouaren’tcareful–the
departmentsturnintosilosand
thegapsturntochasms.
3
Anexample
Sayyourcolleaguesfromfinance
askyouforanewapplicationtogive
themfastervisibilityintocashflow.
Youdothemath:analyzing
differentsolutions,pickingtheright
vendor,implementingthenew
solution,migratingsensitive
financialdata.
Thisprojectisgoingtotakemonths.
They’redisappointed.Youwerejust
tryingtobereasonable.Butyou’re
bothunderpressuretomeet
differentobjectives.
Whatwentwrong?
Putsimply,youwere
tryingtosolvedifferent
problems.
Theyweretryingtosolvetheproblemof
alackofcashflowvisibility.Andyouweretrying
tosolvetheproblemofalackofsoftware.
TherearedozensofwaysthatITcanslowly
becomemisalignedwiththeneedsofagrowing
company.Payingattentiontoprocessisoften
farmoreeffectivethanfocusingontechalone.
Thelesson
Behindeveryrequestisaworkflowchallenge.
Soinsteadoftakingrequestsfromthebusiness
atfacevalue,takethetimetounderstandthe
workflowbehindtherequest.
Inthecaseofourexample,acloserlookwould
haverevealedthattherealproblemwasthe
numberofmanualstepsintransmittinginvoices
toaccountspayable.
Moreimportantly,workflowanalysiswouldhave
revealedthatyoucouldactuallyautomatemost
ofthosesteps.
Whattodoaboutit
Ifthere’snoprocessforcollaborationand
alignmentwiththebusiness–buildone.
Thereareacoupleofwaysyoucanstart
doingthisimmediately.
Spendmoretimewithbusinessstakeholders
–talktothemabouttheirprioritiesandtheir
growthexpectations.You’dbesurprisedhow
muchthissimplestepcanchangeyour
entirestrategy.
Startanalyzingrequestsusingthe‘fivewhys’
technique:InitiallydevelopedintheToyota
ProductionSystem,it’sanincisiveapproach
toworkflowanalysisthat’llhelpyoudetermine
theproblemsbehindtherequests.
Keepaneyeontheforecasts:talktoyour
forecastingandplanningteam.Getasense
ofwhat’scoming.
“Anycompanythatisgrowing
probablyhasaverygood
marketingarm,andthosepeople
tendtobepeoplewhoforecast.”
Tanni Graichen
Formerexecutivevicepresident
ofIntegratedCardBusiness
andCIOatProvidian
Sohere’swhat
we’velearned.
Growththrowsupnon-trivial
challengesthattestthebusiness
inanumberofways.
Soformoderncompaniesto
scale,ITneedstobeinsync
withthebusiness.
Thegoodnews
Thedecisionsyoumake
whenyou’rerunningIT
foragrowingcompany
willhaveanoutsized
impactontherestof
thecompany.
Designscalableprocesses;prioritize
andautomateforbudgetleverage;
andstayalignedwiththebusiness
–itwillbemucheasiertonavigate
thesegrowingpains.
(We’reconvincedthatdocument
managementcanplayamajor
roleinallthreeoftheseinitiatives
–butthat’sforanothertime.)
Growthcreatespressure.
Butitalsogeneratesexcitement.
Growthcanworkbetter.
Furtherreading
IT leaders in rapidly growing companies
have to navigate a whole range of traps
and obstacles and paradoxes. Read our
eBook about the skills and strategies
neededtoleadITinagrowingbusiness.
The growth CIO
Lessons and strategies about
leading during rapid growth
Download
We’reXerox.
Wehelpgrowingcompaniesby
findingsmartwaystomanage
theirprintersanddocumentsso
theirworkflowcanflowbetter.
Wehopethisslidesharehelped
you.And,wehopeoursolutions
helpyoutoo.
Let’stalk.

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Growing Pains