What are the top internal barriers to growth?

All businesses experience growth plateaus. They reach a certain size and struggle to grow either their revenue or their margin or both, and it's usually not because they've reached market saturation—it's due to internal barriers. 

Most B2B companies have less than 5% market share, so the most obvious place to look for barriers is internally.

We've collated some classic internal barriers to help companies understand how remove them, whether they're people, process or technology-based.

Lack of process definition - working with best endeavours

Many organisations function with vague or poorly defined processes, depending on employees to use their best efforts to complete tasks. This method can result in inconsistencies, inefficiencies, and errors, significantly hindering growth.

According to a report by McKinsey & Company, companies with well-defined processes are 30% more likely to achieve their performance goals (McKinsey, 2018). Without clear guidelines and standardised procedures, employees may interpret tasks differently, leading to varied outcomes and a lack of uniformity in work quality.

This can cause duplicated efforts, missed deadlines, and a general sense of confusion within the team. Furthermore, the absence of well-defined processes can make it challenging to onboard new employees, as there is no clear framework for them to follow, which can slow down their integration and productivity.

Over time, these inefficiencies can accumulate, creating a chaotic work environment that stifles innovation and progress. The lack of structured processes can also lead to a reactive rather than proactive approach to problem-solving, where issues are addressed only after they have caused significant disruptions.

This reactive stance can prevent the organisation from anticipating and mitigating potential challenges, further compounding inefficiencies and stalling growth.

Additionally, without standardised processes, it becomes difficult to measure performance accurately, making it challenging to identify areas for improvement or to hold employees accountable for their work. This can result in a lack of motivation and engagement among staff, as they may feel uncertain about their roles and the expectations placed upon them.

To resolve this issue, companies should dedicate time to defining and documenting their processes. This involves mapping out each step of key tasks and workflows, identifying potential bottlenecks, and establishing clear roles and responsibilities. By doing so, organisations can create a structured approach that minimises errors and enhances efficiency. Clear, standardised processes ensure that everyone knows what is expected of them and how to perform their tasks effectively, which in turn supports scalable growth.

Additionally, documented processes serve as a valuable reference for training and development, helping employees to quickly understand and adapt to their roles. Regularly reviewing and updating these processes can also ensure they remain relevant and effective, allowing the organisation to continuously improve and adapt to changing business needs.

Implementing process management tools and software can further streamline this effort, providing a centralised platform for process documentation, monitoring, and optimisation. These tools can offer real-time insights into process performance, enabling organisations to make data-driven decisions and quickly address any inefficiencies (Forrester, 2021).

Moreover, fostering a culture that values continuous improvement and encourages employee feedback can help in refining processes, ensuring they evolve in line with the organisation's growth and market demands. According to a study by Deloitte, companies that prioritise process improvement see a 20% increase in operational efficiency (Deloitte, 2020).

 

We are growing rapidly and one month after implementing Service Hub’s ticketing and Help Desk with Big Business Agency, we are experiencing significant increases in our efficiency and simplification of our CS operations.  We’re managing to do much more, much faster and improve the service to our B2B customers.

If you need help removing internal barriers to growth then I would recommend Big Business Agency.”

Simon Hunter | CEO Hunter Apparel Solutions

 

Inter-departmental conflict can significantly hinder growth.

When departments are misaligned or constantly in conflict, it disrupts workflow, lowers morale, and reduces productivity.

According to a study by Gallup, organisations with high levels of inter-departmental conflict experience a 21% decrease in productivity and a 22% increase in turnover rates (Gallup, 2019).

Inter-departmental conflict

Inter-departmental conflict can significantly hinder growth. When departments are misaligned or constantly in conflict, it disrupts workflow, lowers morale, and reduces productivity. According to a study by Gallup, organisations with high levels of inter-departmental conflict experience a 21% decrease in productivity and a 22% increase in turnover rates (Gallup, 2019).

These conflicts often stem from poor communication, unclear roles, and competing priorities. For example, if the marketing team is pushing for a new campaign while the product development team is focused on refining existing products, this misalignment can cause friction and inefficiencies.

Additionally, when departments operate in silos, they may develop their own goals and metrics for success, which can conflict with the broader organisational objectives. This lack of cohesion can lead to duplicated efforts, wasted resources, and a fragmented customer experience.

Furthermore, inter-departmental conflict can create a toxic work environment where employees feel undervalued and unsupported, leading to higher turnover rates and a loss of institutional knowledge. Over time, these issues can erode the company's competitive edge and hinder its ability to innovate and respond to market changes effectively.

The negative impact of inter-departmental conflict extends beyond immediate operational inefficiencies. It can also damage the company's reputation, as clients and customers may experience inconsistent service and communication. This inconsistency can lead to customer dissatisfaction and a decline in customer loyalty, which is detrimental to long-term business success.

Moreover, the stress and frustration caused by ongoing conflicts can lead to burnout among employees, further exacerbating turnover rates and reducing the overall talent pool within the organisation. The financial implications of these conflicts are also significant, as the costs associated with recruiting and training new employees, coupled with the potential loss of business, can strain the company's resources and hinder its ability to invest in growth initiatives.

A report by the Society for Human Resource Management (SHRM) found that the average cost of replacing an employee is approximately six to nine months of their salary, highlighting the financial burden of high turnover rates (SHRM, 2017).

Additionally, the time and effort required to resolve these conflicts can divert attention from strategic initiatives, causing delays in project timelines and stalling innovation. The cumulative effect of these issues can create a vicious cycle where unresolved conflicts lead to further misalignment and inefficiencies, perpetuating a state of stagnation within the organisation.

This ongoing turmoil can also impact employee engagement and satisfaction, as individuals may feel disheartened by the lack of progress and the constant friction between departments. In the long run, the inability to effectively manage inter-departmental conflict can result in a weakened organisational structure, making it difficult to attract and retain top talent, and ultimately compromising the company's long-term viability and success.

To address these challenges, organisations must prioritise fostering a culture of collaboration and open communication. This can be achieved through regular inter-departmental meetings, team-building activities, and the establishment of cross-functional teams to work on key projects. By encouraging departments to work together towards common goals, companies can reduce friction and create a more cohesive work environment.

Additionally, implementing clear communication channels and conflict resolution mechanisms can help address issues before they escalate, ensuring that departments remain aligned and focused on the organisation's overall objectives.

Investing in leadership training can also equip managers with the skills needed to navigate and mitigate inter-departmental conflicts effectively. By promoting a culture of mutual respect and understanding, organisations can create a more harmonious and productive workplace, ultimately driving growth and success.

Relying on emails and manual tasks

Similar to spreadsheets, an over-reliance on emails and manual tasks can significantly impede the seamless flow of operations within an organisation, hindering overall productivity and efficiency. According to a report by the Radicati Group, the average office worker receives around 121 emails per day, leading to cluttered inboxes and making it difficult for employees to track important information and deadlines (Radicati Group, 2023).

This inundation often results in delays as employees are forced to sift through numerous messages to find the relevant details they need to proceed, interrupting the momentum of projects and causing unnecessary downtime.

Moreover, emails are not inherently structured for task management, which can lead to disorganisation and miscommunication, as important instructions or updates can be easily overlooked or buried under less critical correspondence.

Similarly, manual tasks, which require human intervention at every step, are inherently time-consuming and prone to human errors due to their repetitive and monotonous nature.

A study by the Ponemon Institute found that manual data entry errors cost businesses an average of $900,000 annually, highlighting the financial impact of these inefficiencies (Ponemon Institute, 2022).

Furthermore, manual processes are notoriously difficult to scale. As a company grows and the volume of tasks increases, relying solely on manual efforts becomes unsustainable.

The increased workload creates bottlenecks as existing processes and systems struggle to keep up, limiting the organisation's capacity to expand efficiently and effectively.

These bottlenecks can lead to missed deadlines, frustrated employees, and ultimately, a decline in customer satisfaction and business performance. The Deloitte Global Human Capital Trends report states that organisations implementing automation technologies experience a 20% increase in overall operational efficiency (Deloitte, 2021).

Examples

To address these challenges, businesses should consider automating repetitive tasks and implementing comprehensive workflow management systems. Automation can significantly enhance operational efficiency by streamlining routine processes and minimising the potential for human error, freeing up valuable time and resources.

When tasks such as data entry, scheduling, and reporting are automated, employees can redirect their focus towards more strategic initiatives, such as innovation, strategic planning, and customer engagement, which are crucial for driving long-term growth and competitive advantage.

Additionally, automation provides a scalable framework that can accommodate increasing workloads without the need for proportional increases in resources or time, allowing businesses to grow without being constrained by existing limitations.

By adopting workflow management systems, organisations can benefit from a centralised platform that integrates various functions, offering real-time visibility into task progress, resource allocation, and project timelines.

This centralisation not only improves coordination and communication among teams but also enables leaders to make informed decisions based on accurate, up-to-date information, ensuring that resources are optimally allocated and strategic goals are met.

Consequently, companies can operate with greater agility and responsiveness, positioning themselves for sustainable growth and success in a competitive market. By leveraging technology to improve operational efficiency, organisations can not only enhance their internal processes but also deliver better value to their customers, ultimately strengthening their market position and driving long-term success (Forrester, 2022).

Constantly chasing other departments

When employees spend a significant amount of time chasing other departments for information, approvals, or support, it can lead to delays and frustration. This lack of coordination can stifle growth and reduce overall productivity.

The constant back-and-forth not only wastes valuable time but also creates a bottleneck in the workflow, causing projects to stall and deadlines to be missed. Employees may become unmotivated as they struggle to complete their tasks efficiently, leading to a decline in morale and job satisfaction.

Furthermore, the repeated need to follow up with other departments can create a sense of disorganisation and chaos, making it difficult to maintain a smooth and cohesive work environment.

Over time, this inefficiency can accumulate, resulting in significant financial losses and a diminished competitive edge in the market. The inability to quickly access necessary information or secure timely approvals can also hinder the company's ability to respond to market changes and seize new opportunities, ultimately stalling innovation and growth.

This ongoing struggle for interdepartmental coordination can also lead to a breakdown in communication, where important updates and changes are not effectively disseminated across teams. As a result, employees may find themselves working with outdated or incorrect information, further compounding inefficiencies and errors.

The lack of a streamlined process for obtaining approvals and information can also create a culture of dependency, where employees feel they cannot move forward with their tasks without constant input from other departments. This dependency can slow down decision-making processes and create a bottleneck effect, where the progress of one team is contingent on the responsiveness of another.

Additionally, the frustration and stress caused by these delays can lead to higher levels of employee burnout and turnover, as staff members become disillusioned with the constant hurdles they face in their daily work.

 

The cumulative effect of these issues can create a vicious cycle, where the inefficiencies and frustrations feed into each other, perpetuating a state of stagnation and disarray within the organisation.

This can ultimately erode the company's culture and reputation, making it difficult to attract and retain top talent, and compromising its long-term success and viability in the competitive market landscape.

The cumulative effect of these issues can create a vicious cycle, where the inefficiencies and frustrations feed into each other, perpetuating a state of stagnation and disarray within the organisation. This can ultimately erode the company's culture and reputation, making it difficult to attract and retain top talent, and compromising its long-term success and viability in the competitive market landscape.

Implementing centralised communication and project management systems can help streamline interdepartmental interactions. These systems provide visibility into project statuses and responsibilities, reducing the need for constant follow-ups and enabling smoother operations.

By centralising communication, employees can easily access the information they need without having to chase down colleagues, thereby saving time and reducing frustration. Project management tools can offer real-time updates on task progress, deadlines, and resource allocation, ensuring that everyone is on the same page and working towards common goals. This transparency fosters accountability, as team members can clearly see who is responsible for each task and track their progress.

Additionally, centralised systems can facilitate better collaboration by providing a platform for sharing documents, feedback, and updates, thereby enhancing teamwork and cohesion. Automated notifications and reminders can further streamline processes by alerting employees to upcoming deadlines and required actions, minimising the risk of oversight.

By reducing the administrative burden and improving coordination, these systems can significantly boost productivity and efficiency, allowing the organisation to focus on strategic initiatives and drive sustainable growth.

Moreover, these tools can integrate with other business systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) software, to provide a holistic view of the organisation's operations.

This integration can further enhance decision-making by providing comprehensive data insights and analytics, enabling leaders to identify trends, anticipate challenges, and make informed strategic decisions.

Additionally, centralised communication platforms can support remote and hybrid work environments by ensuring that all team members, regardless of location, have access to the same information and resources.

This inclusivity can enhance collaboration and ensure that remote employees remain engaged and productive. By fostering a culture of transparency and accountability, centralised systems can also help build trust among team members, as everyone has visibility into each other's contributions and progress. 

This trust can strengthen interdepartmental relationships and create a more cohesive and motivated workforce, ultimately driving the organisation towards its growth objectives.

No sense of urgency

A lack of urgency within an organisation can significantly impede growth. When employees do not feel a sense of urgency, tasks may be postponed, opportunities overlooked, and overall momentum diminished.

This absence of urgency can appear in various forms, such as procrastination, complacency, and a general disinterest in meeting deadlines. Employees may become used to a slower pace, fostering a culture where mediocrity is accepted and excellence is not actively pursued. This can lead to a sluggish response to market changes, slower innovation cycles, and a failure to seize emerging opportunities.

Additionally, the lack of urgency can create a disconnect between the organisation's strategic goals and daily operations, resulting in misalignment and inefficiencies. Over time, this can erode the company's competitive edge, as more agile and proactive competitors capture market share and drive industry advancements.

The cumulative effect of these delays and missed opportunities can be detrimental to the organisation's long-term success, as it struggles to keep pace with the fast-moving business environment.

Research by Kotter (2008) highlights that organisations with a strong sense of urgency are more likely to achieve their strategic goals and adapt to market changes effectively.

A study by the Harvard Business Review (2010) found that companies with a high urgency culture experienced a 30% increase in productivity and a 25% improvement in employee engagement.

Furthermore, data from McKinsey & Company (2017) indicates that businesses that prioritise urgency and proactivity are 2.5 times more likely to be top performers in their industry.

Fostering a culture that values urgency and proactivity can lead to more efficient and timely task execution. Setting clear deadlines, recognising and rewarding prompt action, and promoting a results-oriented mindset can help instil a sense of urgency throughout the organisation.

This includes not only establishing firm timelines for project and task completion but also ensuring that all team members are effectively communicated and understood by these deadlines.

Leaders play a crucial role in modelling urgency by committing to swift decision-making and prompt follow-through on initiatives.

Additionally, implementing performance metrics that emphasise speed and efficiency can reinforce the importance of urgency. Regularly reviewing progress and providing constructive feedback can help maintain momentum and keep teams focused on their goals.

Encouraging a proactive approach to problem-solving, where employees anticipate challenges and address them before they escalate, can further enhance the organisation's responsiveness.

By creating an environment where urgency is valued and rewarded, companies can cultivate a dynamic and motivated workforce that is better equipped to drive growth and adapt to changing market conditions.

Operational Misalignment

Operational inefficiencies can be a silent killer of business growth and creep into well run businesses easily.

The Hidden Costs of Operational Misalignment

Operational misalignment can lead to a variety of hidden costs that may not be immediately obvious. These costs can manifest in the form of decreased productivity, reduced employee morale, and inefficient use of resources. For example, when departments are not aligned, tasks may be duplicated or overlooked, leading to wasted time and effort.

Furthermore, operational misalignment can result in poor customer experiences. If customer-facing employees are not on the same page as management or if conflicting processes are in place, customers may receive inconsistent information or service. This can damage your brand's reputation and lead to lost business in the long run.

Key Symptoms of Operational Misalignment

Recognising the symptoms of operational misalignment is crucial for addressing the problem before it escalates. Some key symptoms include frequent miscommunications between teams, missed deadlines, and a general lack of cohesion in achieving business objectives.

If you notice that projects are consistently running over budget or that there is a high employee turnover rate, these could also be indicators of misalignment.

Another symptom to watch for is customer complaints. If customers are frequently dissatisfied or if there are recurring issues that seem to go unresolved, this could be a sign that your operations are not aligned effectively. Monitoring these symptoms can help you identify areas that need improvement.

Root Causes of Operational Misalignment

Understanding the root causes of operational misalignment is essential for developing effective solutions. Often, misalignment stems from a lack of clear communication and defined roles within the organisation. Often the business goals haven't been consistently communicated. 

Someone once said that when communicating business strategy and goals to employees, when you're sick of repeating yourself, they have just begun to hear you.  It's important to listen to how they repeat the goals and strategy to really understand their interpretation.

When employees are unsure of their responsibilities or how their work contributes to the overall goals, confusion and inefficiency can arise.

Another common root cause is the absence of a cohesive strategy. Without a unified plan, different departments may pursue their own objectives without considering how they fit into the bigger picture. This can create silos within the organisation, leading to fragmented efforts and suboptimal results.

Strategies to Realign Your Operations

To realign your operations, start by fostering open communication across all levels of the organisation. Encourage regular meetings and updates to ensure everyone is on the same page. Clearly define roles and responsibilities to eliminate confusion and ensure that each team member understands how their work contributes to the overall goals. Have Human Resources align Job Descriptions, goals sheets and reward and recognition schemes to reflect the core business goals and KPIs'.

• Implementing a unified strategy is also crucial.
• Develop a comprehensive plan that aligns all departments towards common objectives.
• Use performance metrics and feedback loops to continually assess and adjust your approach.
• Investing in training and development can also help ensure that employees have the skills and knowledge they need to operate efficiently.

Case Studies: Learning from Operational Misalignment

Examining case studies of other organisations that have faced operational misalignment can provide valuable insights. For instance, a technology company that struggled with frequent project delays discovered that the root cause was a lack of communication between the development and marketing teams.

By implementing regular cross-departmental meetings and a shared project management tool, they were able to improve coordination and reduce delays.

Another example is a retail chain that experienced high employee turnover and low customer satisfaction. Upon investigation, they found that inconsistent training and unclear job roles were the main issues.

By standardising training programs and clearly defining roles, they were able to improve employee retention and enhance the customer experience.

Smash through your internal barriers to growth!

If you're interested in understanding how we would remove your internal barriers, use this meeting link to contact us and arrange a discussion with one of our team.

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