Curated Articles: Hitting the Wall

As companies grow, at some point many will “hit a wall.” It is likely, based on prior studies, that the if and when this may occur will not have been predicted by company management.
Below are published articles related to companies hitting the wall:
  • Eric M. Ross published an article, titled “Hitting the Wall,” in which he mapped out the typical timeline for companies as they grow and expand. In order for companies to remain profitable and have continued growth in sales after they’ve hit the wall, Ross explains the key areas of focus, which are:
    • Management approach
    • Organization, processes, and systems
    • Working capital availability
  • The most suitable person to understand how to predict when a company will hit its wall would be someone who has been there before. In an article from Inc. Magazine, also titled “Hitting the Wall,” the founder James Bildner of J. Bildner & Sons explains what indicators to look for before a company hits the wall. He stresses that the main theme for all companies that reach this point of stagnation is the same, poor cash flows.
  • In Mike Rogers article, “How to Avoid Hitting the Growth Wall,” he dives into the management techniques that can be detrimental for companies as they grow. He lists the five management practices that he feels stalls growth:
    • Treadmill Mentality
    • Management by Insanity
    • Rear-View Mirror Management
    • Management by ESP
    • Midas-Touch Management