When a growing company reaches 40 to 50 employees, the flexible organization which brought the original success is challenged by multiple goals and contradicting requirements. Meetings become long and widely attended, overlapping projects begin to appear, and important initiatives are assigned to “whomever is available”. These signs warn that the organizational functions need to be better defined.
Clear responsibilities engender efficiency and accountability. When everyone in the organization knows their responsibilities and how each group interacts and supports the others, agility returns, and efficiency improves. I propose a Three Engine framework to help organize a growing company reaching this growth challenge.
The Product Engine researches and develops products to fit customer needs. In small technology companies, they provide pre and post-sales technical support. The Revenue Engine takes the products to the market. They lead marketing research, communications, go to market strategies, and execute sales campaigns to close sales. The Infrastructure Engine manages finance, infrastructure, budgets, approves compensation, and assures compliance to keep the other two engines operating efficiently. The CEO keeps the engines working together and acts as the ultimate judge when conflicts in priorities or execution arise.
Superimposing the engines on a traditional organization chart shows more detail on the functions accountable to each engine.
The CEO, as the strategic leader, sets direction, represents the company to investors, the Board of Directors, and provides his perspective for the company’s most important communications. The CEO may function as the COO (operational head) of the organization or assign someone else to exercise that role.
The functional breakdown offers guidelines to assign new initiatives and create job descriptions for new employees. One significant byproduct of a clear functional organization chart is accountability. In the above example, it is clear which group responds to customer problems, contract negotiations, product marketing, and product development. The groups will collaborate to win business, but each group is accountable for their specific responsibilities.
Aligning the three engines
Corporate objectives can be set in a 2 day process involving the CEO working with the Engine Leaders to agree on a set of 5-7 corporate objectives for a Fiscal Year. Once the objectives are set, each Engine Leader individually formulates how their engine will contribute to the corporate objectives and sets 5-10 goals for their own engine. The CEO behaves as a trusted advisor to help the Engine Leaders in this task.
On the second day, each Engine Leader presents how his engine will contribute to achieving each of the corporate objectives. The presentation includes what support each engine needs from the others. This is also an interactive session, which will require ample time for team discussion. Typically, 1 to 1.5 hours are needed to ensure complete coverage of each engine’s goals.
Implementing the Three Engine framework at all levels
Each Engine Leader will bring the objectives to their own managers or individual contributors for assignment and completion. The high-level objectives are broken down into tasks, which could easily be turned into management objectives (MBOs) and tied to bonuses or other compensation. This result is full synchronization of an entire organization with the CEO’s corporate objectives.
Maintaining the engines on track
Each quarter, the Engine Leaders and CEO meet in a Management Business Review (MBR) to present results for the previous quarter and plans for the next. MBRs track progress, open opportunities for team input, and help to determine if corporate objectives need to be adjusted.
MBR sessions can be 2 days per quarter and offer an opportunity for team building and presenting new initiatives to the Leadership Team. The sessions unleash innovative ideas and encourage team building through interaction. The MBRs build teamwork, synchronize the organization toward common business objectives, and encourage accountability among the team members. Engine Leaders may implement the MBR format with their management team in the form of a monthly staff meeting.
Applying the Three Engine framework to a small, midsized company clarifies individual contribution and establishes accountability at the Executive Management level. Assigning the objectives to individual contributors within each engine aligns the entire organization behind a set of committed goals. Team objectives and quarterly updates encourage teamwork, and cross-engine collaboration.
One common fear for small companies is a perceived loss of agility and teamwork. In my own experience, the reverse is true. When objectives are set, responsibilities are clear, and results are shared with the entire team, Reporting results accomplishment to the entire Team is a compelling incentive for each team member to focus on achieving their engine’s goals to share positive results. A summary of all results can easily be used by the CEO to present progress to the Board of Directors.
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Modesto Casas, Founder and President of In Region Inc., has 32 years of revenue growth successes in Worldwide Markets. He has held Worldwide Executive Management responsibilities in various entrepreneurial companies in the United States and abroad. He has developed innovative companies in global markets and integrated them after mergers or acquisitions. He has formed strategic relationships with customers and partners to increase sales revenue and market penetration in Brazil, China, Europe, Eastern Europe, India, Japan, Korea, Russia, Singapore, Taiwan, Uruguay, and the United States.
He is the creator of Practical Solution Selling and Selling for Entrepreneurs, which he has applied while exercising Sales, Marketing, Operational and Executive responsibilities to help entrepreneurial companies beat their larger competitors. When he is not teaching others how to sell, Modesto helps Founders and Entrepreneurs from all over the world to overcome the complexities of their target markets, leverage their strengths and beat their larger competitors. He is multi-lingual and multi-cultural, having lived in six countries.
Global Business the Mo Casas Way 