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The Lead - Why Grow?

I kicked off an engagement with a new client yesterday, and to get the ball rolling we got the whole team together. My client felt strongly that the operations team should hear the direction we're heading as it relates to building strategy and structure around business development. First, I'll say this sort of approach is the minority for my engagements. But I'm really glad we did it.

I've written before about the importance of cohesion between sales and operations. It's a particularly important topic for property management companies because bringing on the wrong clients can create a wide range of issues. Sales wants to sell, operations can tend towards resisting growth if it's not smart.

This got me thinking around the basic question - "Why grow?". If you're a business owner, the answer to this question could be very simple. Many people associate door growth with profit growth, which we know is certainly not a given. Scale can be a step towards greater profitability though.

That answer, is really only motivating to the business owner. "We want to grow because I want to make more money" is a pretty good way to frustrate your team. While it may not be said this bluntly, there's a decent chance your team is thinking it. That's why it's essential for us to consider why growth is good not just for us, but also for the organization as a whiole.

The Reality of Churn

In just about every business, we have to contend with the fact that we will lose customers. In property management, you can lose clients because of your service, or a client deciding to sell. Doesn't matter if it was your fault, it just happens. So at a very basic level, we need to replace the clients we lose with new ones to maintain where we are.

While very logical, this isn't all that exciting. If your growth goals are just to stay afloat, it's fine but not super inspiring if we're being honest. Still, it's part of the equation and worth articulating to the team. If we're not growing, we're shrinking.

Opportunities Growth Creates

In my call yesterday, the business owner shared that he believes he has a great team, and growing the business presents opportunities for them in their professional lives. Things like increased compensation, but also the opportunity to lead. Right now his people are very much in the day to day work. He sees a future where those people are leading teams and helping guide the organization forward.

I was super encouraged by this. To hear a business owner tell his team he believes in their ability is a refreshing perspective. It's an encouragement to them, rather than a burden. Significant growth will effect them, it will feel like a strain at times. But scale will open the door to resource that helps alleviate that, like new team members and even tools that could make life easier.

Greater Impact

In last week's newsletter, I talked about how having conviction that what we sell makes an impact in people's lives. That's true too on the operations side. While the work can be difficult, having strong conviction that the work is truly helping someone is huge. In property management, we're helping clients build a better financial future for their family. We're alleviating the stress that can come with owning investment property. We're taking work off their plate.

If our team really believes that, then growth is an opportunity to expand that impact. If what we do is truly excellent, why would we not want others to experience that? We gather reviews, testimonials etc. because we want to capture those stories of impact from our current clients, and build trust with future ones.

The tension between sales and operations will always exist. If you're growing, there will be pains. But as a leader, we have to convey the vision for what we're trying to do and why. Growth for the sake of growth is not an inspiring message. If you're not conveying a vision, then your team will make assumptions or form their own story.

Is this a question your team has clarity on? How have you communicated your vision for growth? Genuinely would love to hear how you've approached this in your business, or have seen it as a member of a team. Let me know - [email protected].