Prepare your infrastructure
Any growth opportunity takes preparation. You need to prepare to
grow your infrastructure so you can make sure you have the right people and systems to take your company to the next level.
The first step is making sure you are hiring people who can handle
a fast-growth environment.
Addy does situational interviews, asking questions based on an
employee’s resume and background, to find the right people for the
company. For example, he asks potential employees about the most
stressful situation in their lives and how they dealt with it.
“The best indicator of future results is how they’ve done in the past,”
he says. “If you see where personally and professionally they’ve lived
in an environment where they like that challenge and change, that
may be a fit.”
Addy says people either thrive or don’t in a fast-moving organization,
and those who cannot change is apparent early on. In most situations,
employees will come to you and say that the company is not a good
fit, mostly because it’s too fast-paced for them.
He gives new associates the opportunity to work at a position, and if
they’re willing to continue to learn, they will receive training. The ones
who cannot change show signs of that when confronting challenges.
He says body language and attitude are sure signs to tell if the relationship is not going to work out.
A fast-growth company also requires a strong management team to
keep the momentum going.
Addy first identified the key areas of the business that needed more
expertise and depth, then looked internally to find employees who
were ready to step into the leadership role and externally to add a few
key members to the team.
As the list of candidates narrowed, current members of the management team were involved in the selection process. Addy looked
for people who had the skills and expertise as well as those who could
fit into the culture and be examples for other employees.
Along with people, systems and technology also need to be prepared for growth.
During the purchase of a portfolio of 66 properties last year,
Addy realized that PECO’s software reporting system was inadequate to handle the growth. The company spent six months
researching options before selecting a new product to use that
would cut costs and build efficiencies.
PECO also had to change some of its financial reporting functions
in order to promote transparency with its investors and lenders. The
company has fully audited financials, conducts semiannual conference calls, and provides quarterly reporting to lenders and investors.
Addy says to be successful, you need to invest in your base and
take a long-term approach at building it so it’s prepared to handle
growth.
“That base starts with the culture,” he says. “That culture needs to
be stated and restated as you grow your management team. You need
to live and be an example of that culture. As you train the trainers, the
message will be consistent and carried throughout the organization.
Invest in technology, which needs to grow as your company grows. It
can provide information and efficiencies that you will need in a fast-growing company.”
