Evolving from a Vision 1.0 to a Vision 2.0 Organization

The Entrepreneurial Dilemma

"An entrepreneur is someone who jumps off a cliff and builds a plane on the way down." - Reid Hoffman

Every business starts out as an idea. Put the right idea with the right entrepreneur and out of the thousands of good ideas, a single organizational foundation may be laid. From that foundation, a new organization is built. Building that organization is the first stage of business that we’ll call the Vision 1.0 organization.

Let me share with you the statistical life of a Vision 1.0 organization.

  • 1 in 25 successful new businesses will last over 10 years
  • 1 in 20 successful new businesses, will finish building their Vision 1.0 organization
  • Of those that do, less than 4% will break 1 million dollars in sales
  • 2 in 5 Vision 1.0 organizations will ever be put up for sale
  • 1 in 3 Vision 1.0 organizations put for sale, will ever be sold

If you have built an idea into something real, and created a Vision 1.0 organization then Congratulations!

You have accomplished something that 99% of entrepreneurs will not.

Now what?

If you are like 99% of the entrepreneurs in your situation, you can’t stop now. You didn’t get into this just so you could be your own boss, right? There is more that you wanted to accomplish and a bigger reason for building it.

Statistically, you are 80% of the way to the next stage.

Unfortunately,

  • Only 2% of businesses move on to become Vision 2.0 organizations.
  • 85% of businesses that break 10 million dollars are Vision 2.0 organizations
  • 98% of businesses that break 50 million dollars are Vision 2.0 organizations

Every successful Vision 1.0 organization reaches a point where the exponential growth experienced in the past, slows to a comparative trickle. That’s not to say the organization is not profitable. Far from it, the problem is that the organization’s growth has stopped doubling. Often, we see the owner of the Vision 1.0 organization doubling effort, while seeing less and less return on that effort. This is a symptom that the organization needs to change.

Developing a Vision 2.0 is a natural progression to accomplish that change.

Becoming a Vision 2.0 organization

The best executive is the one who has sense enough to pick good men to do what he wants to be done, and self-restraint enough to keep from meddling with them while they do it.” – Theodore Roosevelt

A Vision 1.0 organization is designed, planned and finally built. Once built, there will be a point where it can no longer grow. A Vision 2.0 organization, on the other hand, is designed to grow. The Vision 2.0 organization will drive a set of growth and efficiency sub cycles within an organizational model of productivity Improvement. (see the diagram below)

This Productivity Improvement cycle is the key difference between building (Vision 1.0) and growing (Vision 2.0) the organization.

Vision 1 Vision 2

The Secret to Vision 2.0

“A major reason capable people fail to advance is that they don’t work well with their colleagues.” - Lee Iacocca

The change that occurs, by accident or on purpose, is with the business culture. The vision 1.0 culture rewards the individual contributor. While the Vision 2.0 culture rewards the team.

The first notable change in culture will be when the owner switches roles from the driver to the navigator of the organization.

The reason why so few Vision 1.0 organizations become Vision 2.0 organizations is because this cultural change never happens. The owner and leaders of the organization must drive this cultural change to jump start the growth to the levels it once had.

Teams vs. Individuals

Put 100 strangers in the desert alone, 95% will fail to get out on their own. Divide those 100 strangers into teams of 10 and 50% will get out on their own. Train those teams to survive in the desert and give them the tools to succeed and 99.9% of teams will make it out of the desert on their own. The message is that teams get better results than 95% of individuals who work alone.

A strong individual may be able to 'out work' three employees. Those same three employees, working as a strong team, will always outwork the strongest individual contributor.

The productivity of the team is always more than the productivity of the lone (though competent) individual. In the long run, a team will always outperform the individual contributor. Plus, the right team will always be more cost effective than the individual contributor that can do anything and everything.

Other benefits of teams

  • The owner has more time – A stereotypical Vision 1.0 leader will become a bottleneck. By delegating the responsibility of driving the organization, the owner gives himself/herself more time for other other priorities. 

  • Lower operational costs – Average individual productivity working in teams, improves exponentially. Compare this with the individual contributor whose overall productivity decreases as their responsibilities increase.

  • Risk Mitigation – Individual contributors are the biggest risk for Vision 1.0 organizations when they get sick, burn out or leave. Organizations can be set back when losing a key employee that is doing the work of three people. Risk is mitigated when teams manage roles within the organization vs. one person managing multiple roles.

  • Business Durability – Tribal knowledge is necessary for business durability and business continuity. By documenting that knowledge: consistent processes can be developed, automation can be created.

    The result is an automatic, improvement in quality for products and/or services. This improves the long-term durability and continuity of the organization.

  • Cash Generation – When business owners step away from the “day to day” grind, owners are focused on improving income, reducing costs, identifying markets and developing employees. This type of thinking and work is impossible when the owner has a 100% focus on the day to day operations for the organization.

Next Step to 2.0

“Coming together is a beginning. Keeping together is progress. Working together is success.” – Henry Ford

Moving from Vision 1.0 to Vision 2.0 does not happen overnight. There are ways to make it happen more quickly. We recommend adopting a methodology specifically designed for Vision 2.0 organizations.

We recommend the...,

Vision 2.0 Communication, Planning, Execution (CPE) Methodology

This is a methodology that is easy to learn and can take a lifetime to master. It is designed to build measurable results for Vision 2.0 organizations. The methodology will identify and communicate problems to the team. The team then follows a business checklist that leads to a 90 – 95% success rate for execution and adoption of the new improvement.

If you would like to learn more about the Vision 2.0 Communication, Planning, Execution (CPE) Methodology to move your Vision 1.0 to a Vision 2.0 organization, contact us here. (email or phone)

An expert can meet with you in person to:

  1. Demonstrate the Vision 2.0 Methodology to your executive team.
  2. We’ll also share how
    1. A $3 million cabinetry shop made an additional $30,000 more per month with just $600 in consulting fees.
    2. An Alaskan fishing guide went from one part-time boat to 3 full-time boats and broke $1 million in annual revenue with simple changes to their online activities and website.
    3. An $800 million warehouse increased employee productivity by 25% with a simple technical solution.
Topics: Business Continuity Business Culture Planning Business Consulting