Master the 6 Pillars for a Thriving Business

Happy Sunday everyone!

Writing these thoughts each week to you is quickly becoming my favorite part of the week!

Over the next few weeks, I want to zoom out rather than in and cover some higher-level ideas on building an operation. As we grow, we want less day-to-day pull-in, not more - yet the opposite often happens - to the point where we eventually feel consumed by our business. I hope the ideas over the next few letters help you reframe how you are building.

On another note - I spent a few days at a ranch in Texas with some incredible individuals this week. These were people who were not only succeeding in business but lived full lives. I took some great questions away from this time to help frame how I am approaching my life and business and shared them here. I encourage you to take a look and run through them yourself!

The Key to Scaling Success: Building a Resilient Work Platform

In the ever-evolving world of business, one thing is certain: as companies grow, they invariably encounter new challenges. This expansion can place immense strain on existing systems and processes, often resulting in a breakdown of the tried-and-true rituals that once guided your business.

If you imagine your small business as a network, with each node being

• people

• tools

• processes

as you increase in size, and add more of the resources above, you encounter Metcalf’s Law - which means the complexity of connections and operations increases exponentially as your nodes increase linearly.

As your company grows, it creates a strain on your current systems and rituals. Part of the solution here is how a company communicates (for which I use something I developed called Pull Communication). However, underlying even that, should be a platform for work that is more resilient and agile to continue scaling while minimizing the strain of growth.

Let’s dive into the 6 pillars of a modern-day, scaleable Work Platform.

Understanding the Three Machines of Business

Before we delve into the details of the Work Platform, let's establish a foundation by looking at how businesses are like well-oiled machines. In the grand scheme of things, your business consists of three fundamental machines: Sales, Finance, and Operations. These machines function effectively when they rest on a robust foundation of culture, cadence, and principles.

So, what is this Scaleable Foundation, and why does it matter? It's these principles that underpin the numerous changes and adaptations your business will undergo as it grows. Implementing them early can significantly lower the strain your company faces during periods of expansion and can ease the transition when systems need to be overhauled.

The Crucial Components of the Work Platform

Asynchronous Work

The world is moving at an ever-increasing pace, and businesses are no exception. Working asynchronously is a strategic move towards ensuring your business can handle the growing complexities. Asynchronous work fosters deeper, more focused productivity. It liberates individuals from the constant need to be "on" and ready to communicate.

Deep work is often hindered by the context switching required for real-time communication, preventing your company from reaching its full potential. It's a concept that aligns well with the famous study from MIT Sloan, which shows that context-switching can lead to a significant loss in productivity.

Moreover, working asynchronously respects individual circadian rhythms. No one can work effectively for a full eight hours straight, especially if confined to rigid schedules. Implementing systems that enable work according to personal energy peaks can enhance overall business efficiency.

Actionable Tip: Integrate tools and practices that support asynchronous work, such as project management platforms, communication apps, and shared documents.

Remote Accessibility

Having a business where you can access information from anywhere, at any time, enhances flexibility. Ensure your software and processes are designed to work seamlessly from remote locations. This often involves leveraging cloud-based solutions, giving your team the ability to work from virtually anywhere.

Actionable Tip: Opt for cloud-based software and storage solutions, and establish secure remote access practices for your team to ensure they can work from various locations without compromising data security.

Scalability

Many businesses stumble when they reach a critical juncture because their processes are not built for scalability. They construct processes that cannot handle rapid growth due to the time and resource constraints involved.

In line with this, it's crucial to develop processes that aren't resource-heavy and unprofitable in the long run. Scalability should be a central focus from the outset.

Consider scalability as a fundamental question for everything you build: "Will this break at 10X? 100X?" Scalability ensures your systems and processes can adapt and evolve as your business expands.

Actionable Tip: Continually assess the scalability of your systems and processes, and be prepared to adapt them as your business grows.

Written Communication

A substantial portion of your business operations relies on communication, and written communication holds the key to clarity and reference. Emphasizing written records creates a history that can be referenced, used, and indexed, eventually transforming into a valuable knowledge library for your company.

When business operations heavily depend on phone calls and meetings, it becomes challenging to look back, understand, analyze, or improve.

Actionable Tip: Promote written communication for important decisions, collaboration, and problem-solving. Utilize digital documentation, email, and collaboration tools to create a searchable knowledge base.

Cadence

Maintaining a regular cadence keeps your company on the right track. Sharing metrics at set intervals ensures accountability and provides checkpoints for progress. Reports prepared by key individuals encourage reflection on departmental performance, allowing you to identify and address issues before they become critical.

Actionable Tip: Establish a regular cadence for key activities, metrics, and reporting within your business. Utilize digital tools to automate and streamline this process.

Measured

Measurement is the compass that points you in the right direction. Without measurement, you're left to navigate your business in the dark, hoping for the best. You must measure critical aspects of your business to make informed decisions.

Measurement is an essential part of understanding how well something is doing. It's the key to assessing employee performance, customer satisfaction, and product profitability. Without measurement, you cannot improve or compare current performance to previous data.

Actionable Tip: Implement robust analytics and reporting systems to measure key aspects of your business. Regularly review and analyze the data to make informed decisions.

The Work Platform is the steel frame upon which your business's success is built. Each of its six components contributes to the strength and resilience of your business as it navigates growth. While there are other factors to consider, these components are the essentials that will help your business thrive in the face of challenges and expansion.

Remember that scaling your business is a journey of continuous learning and adaptation. By thoughtfully implementing these principles, you'll find your business more equipped to flourish in the face of growth, becoming not just an enterprise but a true industry leader.

Stay tuned for more insights and strategies in our upcoming issues, as we continue to explore the dynamic landscape of business growth.

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