SCALE OR DIE – building the systems for the lean mean machine (Part 2)
Mika K. S. Tienhaara
Head of Commercial Nordics Decarbonization Solutions | Growth Strategy Executive & CEO experience / Global Operations / Serial entrepreneur startup to exit / “Decarbonization Ambassador”
During this year we have catapulted into the scale-up phase and that cause various challenges and bottlenecks (see also my previous article part 1). When you see that your business model actually works and you are attracting more customer attention and projects, you need to ensure that you build robust systems and methods to be able to ensure that you can deliver in an efficient manner. This is a painful process and many startups fail before or during this period, while some other decide to stay out of this and continue to perfect their own technology/product. Which might be a waste of time unless you know that customers are actually requesting that. I consider strongly that the fortunes of a highly successful tech company lies in being able to build a strong backbone of systems and methods.
We decided to keep on building and take the bull by the horns. When we entered this year we were certain that we would need to build more robust processes and systems for various use and areas. This would enable the whole company to be able perform at a higher level. As one area, it became obvious that we had the need to define and detail our project execution process thoroughly. When you start to have multiple customers and various projects running in parallel, this was a natural area for us to review. Not only do you improve the processes to allow for an efficient throughput, but the whole team gets a common understanding for what is critical for our existence and well-being as a company.
Doing this type of exercises for the development of the company one also learns the various type of projects and resource needs. It should draw your attention to potentially selecting and focusing what type of projects that are best suitable for your company, as well as to deliver these that you might have some holes and improvement potential.
Internally we have now launched our "ROCSOLE PROJECT METHOD", suitably shortened RPM, as we need speed to the machinery. Our RPM has five stages:
RPM-1: Feasibility & Concept
“We have a defined project for something we can deliver”
RPM-2: System Definition
“We have a proper design for something that can be built”
RPM-3: Fabrication & Assembly
“We have a finished functional product ready for delivery”
RPM-4: System Completion
“We have an operational unit at the proper destination”
RPM-5: Operations & After Sales
”We support the client in operations and have a proven product”
This enables us to work towards flawless project execution and have consistent high quality in all steps of a project ensuring highest possible customer satisfaction in our deliverables and services. The RPM is part of the vision and target to have a lean thinking as a company, aligning all processes, our strategy and the have the mindset of all of us in the company at our common targets, minimizing waste – all efforts and resources are used to the best extent to support our companies’ growth. The “lean mean machine” is being created.
The systematic and lean approaches allow us to manage risks, the repeatability in our operations is well documented and described in our processes and new elements are easily detected, mapped and evaluated how to handle.
Of course, you need to see what is suitable for your own startup and your activities – e.g. is it B2C, B2B; apps and software or linked to hardware. But certainly you will need some type of systems for your startup to be able to have proper functionality in the scale-up phase.
We are on the course of getting our core processes updated and the new systems in place. You have to remember that this requires an effort by everyone involved in the startup as it is a change process that will affect each of you and it will cost you to get there. Think of this as a team effort that grows your common identity and culture. You do this to be in a better place.
For myself, I think this is a fantastic opportunity to use the skills and experience in the team to forge the team spirit even further. In the shortest time, I have seen many positive results in how we conduct our work from sales to projects and operations. We initiated this not a day too late and ready to take on the next customer challenges and grow our own confidence further.
Keep on building!
Advascale- Co-founder I Airmed - Co-founder
1 年Mika, thanks for sharing.
Vice President at Viking Arm AS
4 年Very interesting read! Thank you. I will revert with some real life ?scale or die? challenges / cases we are currently facing.
Start-up community lead @ World Economic Forum
4 年Thank you for sharing Mika K. S. Tienhaara! Completely agree that this exercise is worthwhile. And may I recommend to you a nice read along the same lines about how a wide variety of complex systems respond similarly to increases in size: https://www.nytimes.com/2017/05/26/business/dealbook/geoffrey-west-scale-the-universal-laws-of-growth-innovation-sustainability.html
Oppfinner ? Tidligere test- og driftsingeni?r
4 年Tror du/dere i RPM lykkes. Det er bruk for nye tanker og ideer i disse tider??og verden st?r ikke stille og slike som deg trengs Mika. Positivt mtp interesse for min patent www.CBTech.no i selveste Silicon Valley s? hvem vet om framtidens l?sninger.