"Growth is built into everyone's genes."
Andy Grove was asked one time why it was so important for a company to grow. The question was referring to a time when Grove had bought around 30 companies in a relatively short time.
Part of Grove's response was this: "Why do you get up in the morning if all you do is serve exactly the same market with the same customers and the same products?"
The key for business leaders is to manage that growth. Can there be growth that comes at too fast of a pace? Absolutely. Businesses have failed because they refused to manage the pace of growth and weren't able to service the business they received.
If it can't be serviced (think Dell), it shouldn't be tried. I believe that. Growth isn't only in revenue, but in features and benefits built into products and services as well.
The other side of the coin is growth also must be facilitated and encouraged. As Grove said, "Growth is built into everyone's genes." That included everyone from investors, managers and those in sales. This is a legitimate, built-in desire.
To not grow is to stagnate. To stagnate is to die. Grove added that "Growth is the fertilizer for the tree that a company becomes."
It's impossible to say what level growth should entail for a company, because it really depends upon what the market being served is. What all business leaders must know is how growth happens in the industry they're in.
If it's a cyclical industry, obviously growth will come in cycles. To expect growth to be on a stead upgrade would be unrealistic here.
While growth is imperative, it doesn't necessarily represent the health of a company. Other things like how much we motivate dedication in our customers. When they think of doing business with us, where are we in the positioning of their minds. How much repeat business do we do with them? what are we as a brand to them. These types of questions are as important as any concerning pace of growth there is.
That is the final answer to me on the issue of growth: How fast should we allow it? That's a question that not everyone in management asks themselves.
If we grow too fast, our good workers can be overwhelmed by not being able to provide great service. If we grow too slow, there can be a tendency to become complacent and bored over the repetition of serving the same people in the same way - day after day. It can also take some motivation away from people in feeling that they're not part of something great.
Depending on the industry we compete in, we need to measure what healthy versus unhealthy growth is for a company. Once we know its parameters, we need to be faithful and firm in ensuring that those numbers are reached. We shouldn't just throw out arbitrary numbers for our people to reach, but numbers based upon real data and history.
Other Andy Grove Resources:
Andy Grove's Rational Exuberance
The Digital Age . . . driven by the passion of Intel's Andrew Grove
The History and Influence of Andy Grove
Andy Grove enters new post-Intel role as activist capitalist
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