The Case for Scale: Why Growth Alone Isn't Enough

I've built a career focused on growth.

I led Baker Tilly US to 3x growth during my time as CEO.

I advise organizations on growth.

I write a lot about growth.

I read books about growth.

I study organizations and companies that grow.

"Whitman, what's with the obsession with growth?"

Here's my foundational belief:

Every organization either grows or becomes less relevant.

I don't care if you run a $2m firm or a $2B firm, I believe this to be true.

But here's the thing: Growth without intention is just that—a number.

More than growth, the ultimate goal of any organization should be achieving scale. Scale brings a number of benefits that growth alone will not provide.

Today, I want to make the case for WHY growth matters and more specifically, how to make sure your company grows in the right ways to achieve and reap the benefits of scale.

The case for growth.

When I say "growth", I'm talking about growing revenue.

Revenue growth is the coal of every corporate engine.

If your organization is not growing, it's on the path to becoming less relevant.

Now, notice I'm not painting a doom and gloom scenario. I'm not saying you will fail or go out of business if you don't grow.

I'm saying you'll be on the path to becoming less relevant.

Relevant organizations:

• Are a player in their sector

• Are sought after by clients

• Are attractive to talent

• Are invited to conversations

• Are valuable to their employees

Relevancy breeds more relevancy.

Less relevant organizations find themselves on the outside looking in.

Growth is a catalyst for relevance because it allows for the ability to make financial and intellectual capital investments.

In the same way, it becomes a flywheel.

Now, let's be clear about something: I don't advocate for growth solely for the sake of growing. No growth is bad growth AND blindly bringing in more revenue can lead to missed opportunities in the future.

Let's talk about growth vs strategic growth.

Growth vs Strategic Growth

Let's look at a metric like CAGR. It's an important data point because if it's positive, you sold more than you did last year. Good, right?

Sure, that's a good thing AND just because you've grown in the last year doesn't mean you are better positioned to grow in the future.

It goes back to this conversation: ​not all $ are the same​.

Revenue for the sake of revenue is not conducive to future growth if that revenue is not tied to strategy. It's just dollars.

For example, building isolated practices spread across the country without interaction, systems to collaborate, and a deep market presence may lead to growth (more revenue), but it's unlikely to lead to sustainable, compounded growth.

Strategic growth, on the other hand, is revenue that is aligned to strategy. It has a purpose and it enables future growth because it's:

• Building sustainable engines

• Establishing systems

• Creating synergies

• Enabling collaboration

When strategic growth compounds over time, scaling results.

That's where every organization should want to be...

"Why should my organization scale?"

Scaling is a result, not an action.

Scale is a quality measure—it's a result of strategic growth efforts that compound over time.

Organizations that achieve scale are built on systems and engines that continue to produce results.

Why is scale the ultimate goal?

Because organizations that are built to scale have a few distinct advantages:

1) The ability to withstand downturns.

Look, downturns are inevitable within certain market segments, geographies, or across the board.

Organizations that have built systems, incentivized collaboration, and established deep market penetration are better positioned to withstand any downturn that comes along.

Think of boats on the water. Organizations that achieve scale are like bigger ships that are less affected by larger waves that come along.

2) The benefits of creating synergies.

Let's use the example of an organization that rapidly opens offices across the country. Let's say those offices are run by individuals with small teams or led by individual contributors.

What happens when something goes wrong? What if there's a hiccup?

When the operation is dependent on one person, you've got a problem.

Instead, synergies can come from having fewer locations, more concentrated practices, and maybe fewer service offerings. Better to be a mile deep and an inch wide.

When you're growing the depth and quality of a practice, you are creating more synergies and scale.

Synergies lead to continuity. Continuity contributes back to scaling.

3) Increased valuations.

Organizations that achieve scale through compounding strategic growth efforts will be worth more than those that don't.

Why?

Because companies built on strategic growth are more likely to grow in the future because they've built engines and systems to continue growing.

That's a heck of a lot more valuable than a company pulling in random revenue wherever they can get it.

Therefore, an organization built on strategic growth efforts will be valued more today because of the likelihood of future intentional and disciplined growth tomorrow.

Key Takeaways

Here's what I hope you take from this message:

1. How you grow matters. Focus on strategic growth initiatives—growth that is aligned to strategy, built on systems, and repeatable.

2. The ultimate goal is achieving scale. Strategic, focused growth initiatives repeated over time result in scaling.

3. Scale is the ultimate predictor of an organization's ability to remain relevant and sustainable for years to come.

Building strategic growth engines that enable scaling is at the core of the work I do with my clients. When I'm brought into an organization, I become an active member of their growth team.

I'd enjoy the opportunity to be a resource for you and your firm as I have been for organizations like Aprio, Propense.ai, Schellman, Kinavic, Schneider Downs, Rehmann, TILT, and more.

Use the links below to book a call.

With intention,
Alan D Whitman