How to Scale

How To Scale

Organized by function and scale assertion, an inventory of prescriptive ‘how to scale’ statements are provided..

The scale assertions have been developed using CIMO logic, the ‘how to scale’ statements have not.

The ‘how to scale’ statements are organized into five functions (Top Management Team, Marketing and Sales, and so on). For each function, the scale assertions are numbered. The nested itemized lists identify the “how to scale” statements for each scale assertion.

Top Management Team

  1. Increase value by using a compelling image of the desired future company to convince others to provide the funding and resources the company requires
    • Explain to others the benefits they can realize by backing the scaling of the company
    • Describe what will make the company distinct in the future
    • Speak with conviction and passion about the future of the company
    • Contribute to the implementation of important national and cross-border policies that lead to concrete outcomes
    • Promote the company’s leaders and accomplishments to further the progress of scaling the company
  2. Increase profitability by learning to make well-reasoned decisions or conclusions about how to scale from own experience and others
    • Use machine learning methods to develop better estimates of future events
    • Build and maintain processes and capabilities to make superior decisions about resources and value creation opportunities
    • Learn to:
      • Deliver and improve customer services
      • Produce valuable and desirable products at low costs
      • Increase workers’ efficiency
  3. Define and implement the plan to scale with the effort, skills, and resilience to increase profitability
    • Make scaling objectives a top company priority
    • Learn from companies that have used a distinct path to scale
    • Develop and implement a distinct business model to widen the gap between price per unit and cost per unit
    • Define brand in terms of a key value that the company endorses and use it to define the path to scale the company
    • Identify the objectives at each gate in the path to scale
    • Measure progress made toward scale objectives
    • Explain how to overcome obstacles
    • Reward attainment of scale objectives
    • Relentlessly pursue scaling the company
    • Ensure that all actions related to scaling the company receive immediate attention
    • Make scaling everybody’s responsibility
    • Incorporate scaling into how everybody in the company performs their daily work
  4. Increase value by being responsible and accountable for creating and making visible the quantifiable benefits the company delivers its stakeholders, including customers, partners, investors, members of the company’s value chain, society, and others
  5. Increase value by arranging and directing a community comprised of groups that are external and internal to the company and connect everything needed to scale
    • Communicate to customers and other stakeholders how the company’s goals are balanced and aligned with their goals
    • Establish and maintain key positions in networks that own the resources, processes and information the company requires to scale
    • Build a network comprised of customers, power users, fans, users, investors, suppliers, as well as the organizations that develop, bring, and support the company’s products and services to end-consumers
      • Select the organizations that will be part of the network based on criteria defined in terms of what is needed to scale the company
      • Build the most important relationships that are needed to scale
      • Form collaborative and mutually beneficial relationships
    • Build trust between the company and the other organizations in the network
      • Readily shares data, information and insights pertaining to scaling with network members
      • Enable users and customers to use the company’s products to make money
      • Enable power users to promote company’s products on various social media platforms before they are officially released
    • Acquire competitors
    • Use resources of ecosystems that operate across borders to maximum advantage
    • Contribute to joint projects that lead to value creation and growth
    • Anchor the company’s fan club, community, and ecosystem that connects everything needed to scale
      • Use one to three product lines as the center of the ecosystem that connects everything needed to scale
      • Use the center of the ecosystem to expand content
      • Use the periphery of the ecosystem to expand categories
      • Invest in companies to cover most domains in the ecosystem that connects everything and opens the company’s brand to them
      • Operate a large data collection and service center
  6. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
    • Combine the products in the company’s core product line with complementary products in packages that increase the sales to the company’s target market
    • Enable the easy combination among company’s products and other complementary products that resonate with its target market Use Internet of Things and Artificial Intelligence to combine products
    • Build a resource base that allows different value-creating combinations of internal and external resources
    • Acquire, develop or lease new resources that create value through stand-alone improvements as well as specific combinations with the current resource base
    • Co-create a shared view of the scaled company and the path to get there to reduce the cost of coordinating the headquarters and nodes
      • Attract talented individuals from multiple locations to carry out joint projects
      • Target ethnic customers in foreign countries
  7. Arrange and apply differently the company’s existing resources to increase sales
    • Reconfigure the resource base to deliver greater sales and cover a larger geographic area
    • Specify, develop and deliver superior products for which customers have a greater willingness to pay
    • Reduce costs of inputs, production, delivery and customer acquisition and retention
  8. Arrange and apply resources from different regions to increase profitability
  9. Shape ethical behavior for all cross-boundary business activities to increase value.
  10. Increase value by simultaneously developing worldwide learning capabilities, multinational flexibility, and global competitiveness
  11. Eliminate communication and coordination barriers when working with foreign partners that are geographically separate, institutionally distant, and operate in different time zones to increase value
  12. Increase value by forming good opportunities, combining external and internal resources, and operating across borders to raise capital
  13. Develop and implement a governance model to scale, raise capital, protect against the unauthorized use of electronic data, and leverage business ecosystems to increase value
  14. Develop capabilities to cost-effectively attain scale objectives

Marketing & Sales

  1. Develop and sell products that address a problem, job to be done or a need that is shared by a large and growing number of individuals and organizations in various regions to increase sales
  2. Increase market share by selling products and services that the target market perceives to be better than available alternatives
  3. Increase sales by offering a variety of products and services to each market
    • Target a mid-level product segment in the beginning and then moves up or down
    • Cut costs for customers in new locations (e.g., manufacture in foreign country)
    • Target different segments than those targeted in home location
  4. Increase market share by applying digital technology to brand, market, sell, and service customers more cost-effectively than competitors
    • Digitize as much as possible
    • Define the profile for the ideal target customers and uses the social media platforms to find and engage them relentlessly
      • Use blogging and microblogging social media platforms to spread news rapidly
      • Use forums to maintain content, answer questions, and engage users and customers
      • Use multi-purpose messaging, social media and mobile payment applications to service customers
    • Deliver abundant online services that cater to customers’ demands, and offer convenience and excellent customer experience
    • Use social media platforms to shape how people act or how things occur
    • Run flash sales on digital platforms to cost effectively acquire new customers, increase sales, attract attention, gauge demand or create the illusion that the product is in high demand
    • Offer on a digital platform a single or limited product selection for a discounted price lasting just a few hours to 24-36 hours
  5. Increase sales by adapting products and services to each market
  6. Increase the number of new customers and the retention rate of existing customers by offering rewards that satisfy customers’ needs for recognition of their loyalty
    • Offer many coupons – vouchers that entitle their holders to a price discount for a product, to capture new customers
    • Offer rewards to attract suppliers to register on the company’s platform
    • Offer existing customers discounts, bonuses, loyalty points, image, and sense of belonging
  7. Sell online using a variety of online and offline promotional channels to increase the number of new customers and the retention rate of existing customers
    • Blend online and offline sales channels
    • Leverage other companies’ e-commerce platforms to increase sales and company awareness
    • Offers services through the company’s platform as well as others’ platforms
    • Promotes company in the platforms operated by others
  8. Sell high quality products at lower prices compared to competitors to gain market share
    • Price products and services to increase sales relative to competitors
    • Price services to yield higher margins, and price the high-quality devices that access these services to yield lower margins
    • Build distinct images for the company’s products and services
      • Position company’s products as having very high value and low prices
  9. Enter a new market by partnering with or purchasing local firms to increase sales
    • Set aggressive scaling objectives for new markets
    • Implement hiring practices that leverage the workforces that exist in domestic and foreign locations
    • Expand brand coverage by building many links to organizations in new markets
    • Use the company’s website and influencers to promote the company’s brand in locations where it is new
    • Host training programs, conferences and other events that resonate with audiences in the locations where the company is new
    • Invite charities to attend company sponsored events
    • Offer rewards to capture new customers and retain existing customers
    • Implement the “more you buy, the greater the discount” promotion strategy
  10. Increase profitability by improving links, interactions and shared purpose with local organizations in each region the company operates
  11. Increase sales by enabling locals to succeed because of new company

Product Development

  1. Increase demand by using scientific and technological advances to develop innovative products and services
    • Incorporate new technology advances into products to satisfy popular trends
  2. Increase demand by enabling users to participate in product and service development
    • Open the entire defect management system on the Internet and enable power users to help improve the company’s products and services
    • Continuously update and accumulate customer feedback and use it to support rapid product iterations
    • Improve products and services in a matter of days, not weeks
  3. Advance product designs and high-quality customer services to increase demand
    • Differentiate starting with the first product and its related services
    • Make customer service every employee’s responsibility
    • Tracks that each problem is solved on time
  4. Increase profitability by applying processes that make products and services easier to understand, produce and deliver
    • Define and apply a company-specific process to deliver simplicity starting from simple designs

Operations

  1. Continuously improve the user interfaces and applications that directly influence the entirety of the customer experience including personalized content, quality messaging, delivery, and returns process to increase sales
    • Make better the way a business service feature is experienced or seen by customers on the company’s website, shopping stores, and physical stores
  2. Increase sales by applying big-data analytics to produce information about users, suppliers and customers
    • Analyze procurement data and demand for each product and guide suppliers to produce in accordance with demand
  3. Standardize processes to increase profitability
    • Offer different variations of the core product each of which targets different segments and competes with different suppliers
    • Offer an array of products without excessive duplication in any segment and loss of benefits of standardization
  4. Increase profitability by using an end-to-end solution that links procurement directly with end-consumers to eliminate or reduce inventory and the number of intermediaries between the company and end-consumers
    • Establish partnerships to achieve direct delivery of the products end-to-end that benefit both ends
    • Maintain no inventory
  5. Increase demand by meeting or exceeding international product and service standards to overcome barriers to trade and position company as a world-class quality supplier
    • Control the quality of products traded on the company’s platform
  6. Outsource infrastructure management to increase profitability
    • Contract an external source to improve the management of operation components, such as policies, processes, equipment, data, human resources, and external contacts, for overall effectiveness
  7. To increase value, attain stakeholders’ trust by improving cybersecurity of the company and the players it works with
    • Ensure the collected data and computational resources are safe from loss and secured against unauthorized access
    • Develop, acquire or use only secured resources, processes and technologies
    • Improve the company’s capacity to detect, prevent, and recover from successful cyberattacks on the company and those with whom it transacts
  8. Dedicate teams with strong mix of marketing and technical skills to increase the number of new customers and the retention rate of existing customers
  9. Operate systems of coordination, evaluation, and knowledge sharing between headquarters and regional units and among the units themselves to increase value
  10. Manage cross-border units as operations that are interdependent in terms of information, funding and efficiencies and guided by a coordinated strategy to increase value
  11. Increase profitability by using cross-border platforms which enable payments, refunds, logistics, data analytics and offer localization
  12. Increase sales by continuously improving people and operations to deliver a portfolio of innovative products and services

Finance

  1. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace
    • Forms and maintains connections with large and varied investor networks
    • Seeks investments from the company’s managers and employees
    • Let investors know that the company is a valued brand
  2. Increase profitability by enforcing policies and procedures for resource configuration, production and coordination, information search and gathering, bargaining, and accountability and enforcement