Growth Stages Operations Team

Stage 3 – Communicate, delegate and release: Formula for growth

Stage 3 Company (20-34 employees)

Knowing when to delegate responsibility and authority is difficult for the owner of a growing business. The question that looms in your mind is: What if they (employees) mess up?

There is a difference between being a control freak and knowing how to delegate with confidence. The confidence to delegate and release authority comes as you understand where to focus your efforts as a leader of a growing organization.

Knowing what information to ask for, knowing what information to track, knowing what key indicators were critical for success – leading is all about making sure that critical tasks get done right. A leader should know what needs to get done when.

Stage 3 is called the Delegation Stage — for a reason. With 20 – 34 employees, the company is no longer CEO-focused. This stage of growth requires a lot of the leader. The company is more enterprise-focused, demanding that the leader begin to develop key employees into management roles. Without this recognition, a company can grow, but without releasing control, turnover will become your biggest inhibitor to sustainable profitability.

Stage 3 Rules of the Road:

Rule #1: Delegate responsibility and authority to capable supervisors and meet with them regularly. Appoint a supervisory team and meet with them weekly. At these meetings, delegate, track and review specific authority and responsibility to each supervisor.

Rule #2: Create a financial reporting and projection system. Organize your profit and loss statement based on revenue groups and develop a weekly cash flow report. Develop a profit plan.

Rule #3: Instill a team-based mindset throughout the company. Create a team credo. Outline clear roles and responsibilities for all team members. Identify the values that will drive behavior.

Rule #4: Overhaul the business model. Challenge all assumptions regarding vision, mission, goals, objectives and strategies of the company.

Rule #5: Without fail, clarify and strengthen any and all communication with your employees. Clearly communicate the goals and direction of the company to all employees. Establish and demonstrate the company’s core guiding values, preferably with input from your employees.


This article, derived from content created by FlashPoint!, is based on the 7 Stages of Growth concepts developed by the Origin Institute and James Fischer. It was contributed by Jacqueline Sousa, a certified Growth Curve Specialist and regional director of the Florida SBDC at FIU.

Leave a Comment