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Seven signs an SME has outgrown its operating model

The warning signs appear gradually: decisions slow down, workarounds multiply and senior leaders become involved in issues that should no longer need them.

19 September 20264 min readBy Heath Tipton · ChMC
A sustainable SME growth framework connecting strategy, customers, people, processes, data and performance

Growth does not usually break an SME overnight. The warning signs appear gradually: decisions slow down, workarounds multiply and the founder becomes involved in issues that should no longer need their attention.

Seven warning signs

  1. Important decisions repeatedly wait for one or two senior people.
  2. Different teams complete the same activity in different ways.
  3. Spreadsheets and manual workarounds have become business-critical.
  4. Accountability is unclear when work crosses functional boundaries.
  5. The same information is entered, checked and corrected more than once.
  6. Management information arrives late or is challenged in every meeting.
  7. Adding people no longer produces the expected increase in capacity.

These are not isolated efficiency problems. They indicate that the way people, processes, data, systems and governance fit together needs to be redesigned.

The answer is not another layer of administration. It is to clarify decision rights, simplify core processes, remove duplication and build an operating model capable of supporting the next stage of growth.

An SME should not need heroic effort to deliver routine work.
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