In the early years of the entrepreneurship, the proprietor plays the role of one man army. The founder has perfect information but as the company grows over the period of time and it is recognized in the market it naturally needs to begin to scale. It adds layers and other businesses as well. It expands to other geographies, departments are formed each with their own expertise and strategies. If the Management is not careful the organization can move farther from the front line.
Once the organization becomes layered it should set a standard of its working and proper strategy planning should exist at every stage which should aid in future growth without disturbing the smooth flow of present working of an organization. However, if management is not careful the organization loses its sense of mission over a period of time, and company at their worst begin to turn into bureaucracies. Once you become bureaucracy it’s all over. The next wave of insurgents begins to take over. Only one in nine companies in the world in the last 10 years has achieved more than a modest level of sustained and profitable growth. It is becoming more difficult and life cycle of productivity is getting shorter and shorter.