In Stage 3, the ideal Builder-Protector Ratio is 1:1, which means there are equal levels of confidence and caution within the organization. This high level of caution helps stabilize the organization as it goes through the important transformation of being owner centric to becoming enterprise centric. The shift from being owner centric to enterprise centric is uniquely challenging. To manage the stress, the pace of change must be deliberately slowed. A reduced pace will create the stability needed to successfully survive the transition.

In Stage 2, the ideal Builder-Protector Ratio is 3:1, which means there is three times the amount of confidence as there is caution in the organization. The other way to understand the 3:1 Builder-Protector Ratio is that 75% of the team are Builders, while 25% are Protectors.  An organization with a 3:1 Builder-Protector Ratio exhibits a very high level of confidence. 

In Stage 1, the ideal Builder-Protector Ratio is 4:1, which means there is four times the amount of confidence as there is caution in the organization. The other way to understand the 4:1 Builder-Protector Ratio is that 80% of the team are Builders, while 20% are Protectors. An organization with a 4:1 Builder-Protector Ratio exhibits a very high level of confidence.

We’ve recently posted about the significance of process and the five steps of process development. Creating and implementing a strong process is only half the battle, though. What happens when you can’t get buy-in from the people who are responsible for using the process?

Consider for a moment how many times an organization has implemented a new process only to have it ignored or performed inconsistently, rendering it useless. The success of a process depends on the people involved having both the Will and the Means to complete it.

A Stage 3 leader mentors the team, fosters a collaborative environment of trust and respect, and upholds high standards of success. This blend of leadership styles mixes strong people-focused styles (Coaching and Democratic) with enough Pacesetting to keep the rapidly growing team moving forward in the right direction.

A Stage 1 leader guides their team with a strong vision, focuses on people’s potential, and takes charge to lead the organization through chaos. This ideal blend results in an organization that has a picture of where it is headed, is comprised of high functioning, engaged team members, and pushes through chaos with decisive decision making. 

A Stage 4 business has between 35-57 employees. Known as the Professional Stage, one of the top five challenges businesses of this size face is weak project management. A Stage 4 business must focus on implementing scalable processes and systems in order to keep pace with growth. That’s why it’s common for this challenge to arise at this point.

A Stage 3 business has between 20-34 employees. One of the top five challenges businesses of this size face is the existence of a gap between leadership and staff. A Stage 3 business now has too many people for the leader to directly oversee, which is why the leader needs to focus on delegation to managers. This new organizational layer can create an environment of inadequate communication with the staff. 

Climate refers to the prevailing attitudes and standards in a group. Based on what employees observe and experience, climate develops from what people sense is valued or treated as important in their workplace. Whether intentional or not, there is a climate at every level in your organization.

All too often, the climate of a work environment is one that has come about over time without intentional effort. It has been set by the leader, through actions taken and values displayed, both positive and negative.