We all love to hear inspirational stories of businesses who have seemingly achieved rapid growth and success overnight. However, just what are the perils of such fast progress?
Rapid sales growth is a problem many would only dream of having but, managed incorrectly, it can lead to a company’s quick demise. Whilst business leaders contend with complex company finances, chase more sales (and profit) and try to maintain the quality of service/product they set out to supply; it is common for fast track companies to be grappling in the background with developing the policies and internal systems – the backbone needed to sustain a business – that would normally have time to mature alongside steady growth
Uncertainties around legal compliance, governance, human resources and communications are common issues in fast track companies, and this can also lead to missed opportunities around Corporate Responsibility (CR).
We recently reviewed the website for each business on The 2015 Sunday Times Virgin Fast Track 100 league table* and this indicated that almost 75% of the companies listed have no visible CR position or activities. Encouragingly, the remaining 25% seem to have recognised the need to ‘grasp the nettle’ and are realising the benefits that proactive CR management can bring.
Establishing a CR position early-on within business growth should be a business imperative and not something that is seen as a nice-to-have once a business has reached an advanced level of maturity. An effective CR policy and strategy not only supports sustainable business growth, engages employees and mitigates business risk; if integrated within everyday business practices, operating responsibly becomes business-as-usual rather than an over-complicated add-on, reaping the associated business benefits from the outset.
Do you agree that CR should be addressed early on? Let us know your thoughts @corpbalance
* Published annually in December, The Sunday Times Virgin Fast Track 100 league table ranks Britain’s 100 private companies with the fastest-growing sales over their latest three years.