Five Principles to Lead Through Dramatic Growth

Author: David Bishop

07.11.2021

Massive growth in an organization requires a different approach than managing through stability or adversity.

In the late nineties the DVD market exploded.  At MGM we realized that the whole way we were doing business had to change. The market changed from a rental, Blockbuster-esque retail experience to a fast-moving consumer product that hundreds of cutting-edge retailers were excited to join.  As well as this new consumer movement, our product was being distributed by Warner Bros. We understood that no matter how well intended they were, they were not going to be able to provide the focus to maximize our profits since they had one of the biggest slates in the industry. So, we paid them 225 million dollars and gave them back the rights we owned in the Turner library.

As the announcement was made to the entire staff that fit into our conference room, iwe realized that we were going on a journey of rapid expansion. Distibution and marketing teams needed to be setup in the U.S. as well as international offices in all key territories.  My primary concern was ensuring that adding massive amounts of people would not disrupt our sales and profitability.  Equally important was to preserve the spirit of the amazing culture as we expanded beyond our Culver City offices. Rapidly, offices in the U.S., Canada, U.K., France, Germany, Australia and Japan were fully staffed.

The first priority was to hire entrpreneurial leaders in our new locations who reflected our values.  Through a meaningful, somewhat painful 360 process that helped us define our issues as well as tumultuous offsites that resulted in tense radical candor, the team came out the other side better for it.  With a cohesive executive team now in place, it was now time to grow in numbers.

To ensure maximum growth, following steps were implemented:

1. Clear priorities

I could see many potential opportunities with our new-found freedom.  However to ensure clear focus, we narrowed our clear strategic goals to 5 key strategic goals.  Our performance was then frequently measured against those initiatives.

2. Freedom to Fail

As you are growing rapidly people can’t be constrained with too many rules and sign-offs from the home office.  We allowed our people to experiment outside the tried and test methods as long as they were working on the 5 priorities.  We introduced the practice of celebrating failures just to underscore the point.

3. Everyone Contributes     

Everyone needs a meaningful role with the appropriate authority to manage their areas. Our desire as employees is to be self-directed. When autonomy takes precedent over compliance, engagement soars. Bureaucrats need not apply.

4. Team Members Are Reliable

If team members could not be relied upon to contribute and were there to put in time or pick up a check, they were removed quickly and compassionately.

5. A Mission That People Believe Is Greater Than Themselves

What unites a team is a mission statement that drives inspiration. Daniel Pink defines purpose as “the desire to do something that has meaning and is important. Businesses that only focus on profits without valuing purpose will end up with poor customer service and unhappy employees.”

This mostly cohesive team achieved outstanding results. The business grew by nearly 100%.  Though some of that was riding the wave of the DVD market growth, this energized team dramatically raised the upward direction of that hockey stick.  Over a couple of years, $500 million in revenue grew to over a billion.