From Start-Up To Scale-Up: LC GLOBAL Leads Companies Through Their Next Growth And Innovation Stages

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Below is our recent interview with Dr. Erika Jacobi, Managing Director of LC GLOBAL®:

Q: How would you describe LC GLOBAL® to our readers in a couple of sentences?

A: LC GLOBAL® is a highly specialized consulting firm with offices in New York City and Munich, Germany. Typically, the companies that seek our help are experiencing or desire substantial growth. When that happens, the question is how to structure the company so that it can not only cope with such an on-storm, but will also excel because of it. In the same breath, it is important to know how to preserve your unique identity while innovating your business for the sake of growth. We will help you strategize your next steps and facilitate the respective organizational processes.

Q: Can you explain what it means to lead a company or a division from start-up to scale-up?

A: When you start a business or a division, the work processes, culture, strategy, and leadership are often not very well defined. As you grow, however, you need to find your unique identity and increase efficiency at the same time. Since the pace at which companies have to change, is much faster nowadays, the question really becomes what kind of changes companies can make without losing or bankrupting themselves. Of course, should a company never change, they run the risk of becoming irrelevant in the market. We help you navigate these challenging dynamics with hands-on organizational behavior, development, and innovation know-how.

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Q: You partner with international companies of all sizes to lead them through large-scale change, growth, and innovation processes. Have you come across a pivotal mistake all companies seem to make?

A: All companies are different, of course. Ultimately, we are talking different industries, sizes, operation models, cultures, mindsets, and values. I do think, however, that companies experience similar issues during their life cycle despite all these differences. We at LC GLOBAL® specialize in adaptive growth strategies and agile organization design, so we are brought in at times when change is critically needed. One change resistance we notice across industries at that point is the resistance to differentiated decision-making. The decision-maker’s vision, often tainted through past experiences, makes them think that what made the company strong in the past, will also ensure its successful future. That is simply not always the case. On the other hand, some companies frantically change everything there is to change, calling that innovation — although they may be well on the way of losing their identity as the result of too many reactive changes. These are two very broad typical mistakes. The beauty of our work is to find the right balance for each client we partner with.

Q: Would you say that companies should preserve their values as much as they can as they grow?

A: In theory yes, but in practice there is more to the story. If you want to enable or foster growth, you need to be certain you have the right business model, workflows, and organization design in place. Your organization design needs to empower people, ensure a truly agile information flow, and foster a vibrant culture. I think this magic combination can only happen if we truly understand the company’s unique strengths and DNA. At that point, we can design all that I mentioned before, based on these identified values. As structure drives behavior, this process ultimately strengthens a company’s unique sense of who they are.

Q: You call that identity-based growth, right?

A: Yes, but where the rubber really hits the road for true innovation, for true invigorating renewal, is when the DNA can adapt itself to new circumstances — new circumstances that might not have even occurred yet. In other words: If you want to grow and shape a new, desired future, you have to simultaneously hold on to your core values, while ‘translating” them into the circumstances of your desired future state.

This is where even the smallest change process becomes extremely complex. That is the risk. On the flip side of that, stands the overwhelmingly great feeling that you have when you create new circumstances together as a collective — as the entire organization. It is one of the most fascinating processes a company can experience.

Q: Could you give us some examples of the work LC GLOBAL® has done?

A: We just finished a larger project with a division of a Fortune 50 company. That division was in start-up mode and needed to double in size to drive more growth within the corporation. We did an analysis of their success factors and strengths as well as workflows and processes. Based on this collaborative and appreciative assessment, we designed an adaptive growth model for that division. At the same time, we worked on leadership styles and culture. The result was a nimble, modern, and very flexible organization design that was able to facilitate the desired growth rate. On top of achieving the targeted results, the employee engagement levels went up by 20%. Another company was facing an existential crisis as their entire target market was in the process of drastic change and disruption. We designed adaptive innovation strategies for and with that company that would ultimately help them set new standards. In addition, we have assisted companies in their talent development through specialized coaching initiatives. These projects tend to have the goal of creating a more agile and innovative mindset in the company as well as giving the leaders the tools they need to lead any desired transformation process in their companies themselves.

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Q: One last question: Erika, you have been a life-long entrepreneur who has not only helped other companies get off the ground, but who has also successfully grown her own company on two continents. What advice would you give start-up CEOs?

A: An entrepreneur needs to be extraordinarily resilient. My advice would be to learn to take breaks when you get tired — and stop thinking of quitting at times when things are not exactly pretty. At the same time, think of an exit strategy early on. Many successful entrepreneurs had one or more business ideas that just didn’t work. There is a fine line between being delusional about potential success and giving up too easily. Prepare yourself by thinking about a) how you can gain strength in seemingly hopeless situations; b) under which circumstances you would have to call it quits; and c) what kind of leader you want to be irrespective of whether your business idea will be successful or not.