What is Your Firm Freezing Around? It Just Might be the Key to Your Business’ Growth

There is a fascinating property of water that while not well understood, provides a great organizational analogy for the role Growth Leaders play and where to find them.

This unique property of water is the phase change it undergoes at freezing (zero degrees Celsius) and how it can be inhibited if the water is super clear and has nothing present to initiate the moment of freezing.  This phenomenon is called supercooling and is shown in a neat demo video here.

When the water is in the supercooled condition, it really wants to freeze (it’s beyond its usual tipping point), but because there is nothing to start the phase change, it can be caught in this state for a long time.  My materials professor in college shared youthful visions with us of super clean ponds in rural areas of Scotland that were induced to freeze simply by throwing a stone into them.

Bringing this Analogy to Business

A business in its earliest stages is highly extraverted and very much in tune with its markets.  Indeed, much of the success of an emergent business is the “outhustling” of more mature firms, simply from the viewpoint of scrappiness and desire.  In doing so, there is significant coherence between the demand of the client and the solution being produced.

As a business begins to mature, however, systems and processes are introduced out of its need to achieve scale.  This is a good thing, as there must be a consistency and quality of output (marks of a reliable business partner), which can be very fickle in young businesses.  The trade off however, is that this internal consistency comes with some inertia, and in later stage businesses, it can lead to an outright resistance to market and client changes.

By this point in the business’ development, we typically have carved the firm into at least three key functions: product/service development, production and distribution.  In an ideal state, market signals would be seamlessly and continuously felt and responded to across these functions.  But as a firm matures, this happens instead:

These key functions become more responsive internally than externally, and incrementally begin to hold off the need to change.

This is analogous to the water that is supercooled.  

From the outside, we can see that the firm needs to respond, yet that change is held off because there is no nucleation point for the needed change.  In other words, the firm needs a pivot point to “freeze” around, and due to the strong functional allegiances, the client’s needs are not it. In fact, the management in many cases has become protective to the point of being passive aggressive towards the needed change (side note: this is what makes disruption possible).

Bringing in a Catalyst (aka, Growth Leader)

Growth leaders take on the role of the catalyst and provide the customer-aligned nucleation point needed to create change. Going back to our water analogy, if you were to look at water freezing under a microscope, you would see that there are some sharp edges that allow the first crystal to start forming – and that the phase change cascades from there.  

Something similar happens when a growth leader is brought into a firm. These leaders have the role of being a bit abrasive (in a positive way that is aligned with your best emerging clients) to get the needed change and renewal lined up and ready to go.  They do this first by forming a small local coalition – which grows from there into a larger and larger aligned group.

The secret sauce is that it’s not just any coalition, but one formed around a set of clients that can lead the firm to a new and vital market.  By focusing and creating a growing internal narrative around these needs, the Growth Leader shapes the next wave of growth.

Where are They Found?

There is a particular profile of the individual who feels the effect of the misalignment most strongly, and that is what brings the growth leadership role forward.  In many cases, it is the founder-owner (if they are present), that senses intrinsically that the firm has lost its way and needs to reestablish their client alignment.

If the firm’s leadership team has been built via recruitment, it will be those leaders who have a sense of the big picture, with strong visual, verbal and written communication that comes forward and establishes the case for change.

Specifically, we find them in product development, operations and distribution.  Many times you’ll find them working closely with clients to research new and interesting applications or perhaps deep in the supply chain.  They will be vocal and visible proponents of the new and different, and in some cases, may be viewed as “difficult” to lead. The best examples are tenured leaders in the above functions who have a strong need to learn and grow with the movements of their customers.  They have a keen interest in how the business runs, and how they can accelerate it.

If you don’t have one of these advocates in your firm, you might consider adding this voice via other tools like building a strong client “user group,” which is lead by a “board” of leading edge consumers of your product or service.  Many times great new insight is found by activating these complementary players who are super users of your product or service.

Pulling it All Together

  1. It is quite natural that a firm “supercools” itself and sets itself up for a disruptive new competitor.
  2. There are likely visionary leaders that will feel the tension and become quite vocal about the need for change.
  3. Once the change in alignment is going, there is some pent up demand that will keep the effort moving.
  4. If you are not careful, it is easy for the firm to “re-freeze” in place, in which case, the same cycle would need to be repeated.

If these ideas have resonated with you, it might indicate that what may look like conflict is positive tension on your business that wants to release.  If you’d like to talk a bit further, you can either call me at 847-651-1014 or use this link to set up a 20-minute, (no-strings-attached) consult.

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