Applying the Growth Gauntlet
We created The Growth Gauntlet to help leaders build high performing and sustainable organizations. The framework charts the evolution of our Six Imperatives: Sharpen Focus, Calibrate Culture, Strengthen Leadership, Elevate Talent, Align Structure and Amplify Communication across four Stages of High Growth: Emerge, Operationalize, Grow, Explore & Expand. Over the years we have used this framework to guide investors and leaders in their growth journeys. Below are a few of the ways that we have used the framework:
Pre-Investment Due Diligence
The Growth Gauntlet is a powerful evaluation rubric for investors in due diligence. Company executives can self-report where they believe they are in their evolution across each of the Six Imperatives. Their self-assessment gives investors a bead on the company’s organizational maturity and just what key milestones are ahead. Knowing what you have to do to scale the business informs the skillsets required to lead the business through that stage of growth. Also, by introducing the Six Imperatives and the Growth Gauntlet, investors develop a common language from which to work with leaders for the duration of their partnership. It helps to set expectations and align everyone around the stage of growth and the priorities necessary for scaling.
Post Close Due Diligence
The purpose of post close due diligence is to validate what you learned pre-close and determine what the company needs to grow. The Growth Gauntlet provides a great framework for listening to employees across the organization through surveys, focus groups and interviews. As important as the information gleaned in this listening process is the trust building that occurs by taking the time to solicit employee feedback and insight. It goes without saying, but a change in ownership of the company creates a lot of uncertainty for people. New owners – no matter how hands off they intend to be – need to build trust with employees. Investors who take the time at the outset of the investment to really look under the hood and see what they have bought will be able to build trust, proactively close gaps, and preemptively solve problems.
Setting Expectations in the Boardroom
From the outset, it’s important that the board and CEO establish a trusting relationship and align around the plan for growing the business. When the board and CEO have a strong trusting relationship, they can weather challenges that inevitably come with growth. The Growth Gauntlet provides an important context setting framework for the board and CEO. Use the framework to facilitate candid conversations between the board and CEO about the state of the company and what is needed to grow. The framework can be used to measure progress at regular intervals and as a guide for the board to stay on top of key milestones that must occur for the organization to grow.
Team Building
The Growth Gauntlet is a great framework for team building. It’s especially effective for aligning a leadership team around a set of priorities and surfacing issues that need to be resolved. We have used the Online Growth Assessment to survey leadership team members ahead of a retreat. The survey results tell us where the company is on their growth journey and help us to surface any areas that are lagging behind that may need to be prioritized. In addition, we can look at the individual responses to see where the team is aligned and where they are not. Areas of non-alignment make for great discussion topics for a retreat!
We believe there are many other ways to use the Growth Gauntlet and the Six Imperatives as a tool to help high growth companies. We look forward to hearing from you and how you use the Growth Gauntlet to build strong and sustainable high growth companies.
If you’d like our help in assessing your organization, we’re happy to support. To connect, visit our website at www.PeopleCap.com.
