The concept of blitzscaling emerged, initially, from a book by LinkedIn co-founder Reid Hoffman, whose theory explores the agile growth of organizations, without being affected by unforeseen events in this long journey. Therefore, it is important to observe the method and what are the challenges that imply the adoption of this methodology.
Many plans, on paper, are beautiful and functional. It turns out that the practice can be a real storm for entrepreneurs in search of new results. Especially, when problems and challenges unexpected things come your way.
That’s why we’d like to discuss with you, throughout this post, the blitzscaling concept.
As mentioned above, the method was first introduced by LinkedIn co-founder Reid Hoffman.
If you are not yet familiar with blitzscaling, follow us throughout this reading and understand how this model can be applied in your routine and, thus, generate sustainable development for your organization!
What is blitzscaling?
The term blitzscaling originated from the approach that the German army constantly took during the Second World War: blitzkrieg – fast action and with an impacting effect.
For the market, the idea is basically the same: move quickly to develop the brand as efficiently as quickly.
In short, like this, the idea seems to be the dream of every entrepreneur, doesn’t it? Especially, because the blitzscaling has already reached a select list of practitioners, such as:
Understandable, considering that they are great brands, which move their respective sectors of activity. Not to mention Silicon Valley – a region in California where the main corporate names of the technology are currently concentrated.
Of course, in theory, it all looks beautiful and promising. Hence, the need to verify how blitzscaling works in practice.
What is the goal of applying blitzscaling?
Assertiveness, precision and impact are terms widely used to associate blitzscaling in corporate routine. This means optimizing processes and the entire workflow, to:
- avoid waste and losses;
- minimize the occurrence of unforeseen events and problems.
It is worth noting, however, that blitzscaling also focuses, during this transition, on:
Blitzscaling cares less with mistakes that will happen immediately.
The German army, for example, was less concerned with the casualties of its platoons. The end would justify the means applied in the future. And the idea is similar in an organization.
However, in this case, the errors identified prematurely are being mitigated as the blitzscaling is applied and evolves in this process.
That is why Hoffman, in his book on blitzscaling, highlights that this process must be planned in stages, so that companies can organize themselves in the midst of this chaos, which is immediate action and thirsty for short-term results.
Next, we will highlight each of these pillars!
The steps of the blitzscaling methodology
In the concept of blitzscaling, the family is its structural base. It is, therefore, the verification of what will guide the company’s strategy.
It can be, for example, a innovative product of which everyone will focus their energies on spreading it.
For HR, it would be the equivalent of building and disseminating the components of the company’s organizational culture to new departments and newly hired employees.
It is the evolving process, in which blitzscaling will focus on expanding this activity, now aiming at a means of scalability.
This means, for example, the focus on the financial aspect of the strategy so that the action remains solid and functional.
Now, the action has already evolved and impacted a massive number of people. It is at this point that blitzscaling prioritizes attention to maintenance of the entire process:
- adjust what flowed effectively;
- resolve urgent and priority problems;
- discard ideas that don’t work and won’t work.
According to Hoffman, it is at the village stage that companies should stop experimenting.
The focus now must be on executing what you can move forward to the success of the organization’s goal.
Read too: Goal management: 5 steps to engage the team and measure results
The next step is already realized when revenues have grown and goals have been achieved – and, who knows, exceeded – and the goal is growth.
But, just as the management of a large city would work, the vision of the managers must coincide with the search for efficiency in processes, without losing the growth target.
The last stage of blitzscaling, your company has the size of a “nation”, following the parallel created by Hoffman. This means that the company can now consider expansion of its performance, but on an internal scale.
What this can mean: the appointment of leaders for the teams, generating autonomy so that everyone can focus on a common goal, but with efficiency on smaller scales to generate sustainable development that accompanies the risk management for the organization.
How to use blitzscaling in your company?
It is important to consider that the concept should start with a simple question: what is the purpose of your company? And especially: these goals and processes are they current or are they already dated and outdated?
These responses help to compose an efficient strategy, and dealing with all the fronts (challenges, problems and situations) that challenge the path to the achievement of that goal.
Later, assess the stage the organization is in on the pillars of blitzscaling.
Sometimes, managers may inadvertently be in the city stage, while other areas are still considered villages.
That uniformity ensures harmonic growth for everyone to dedicate the right amount of:
Some other ideas to put blitzscaling into practice:
- evaluate the products and / or services that HR and management can focus on developing impact;
- dedicate a high-value initial financial contribution, since the initial actions will require a good dose of resources;
- communicate with objectivity and transparency – internally and externally. The focus should be on the transmission of concise messages that are easily absorbed.
When can I consider that the company applies the concept of blitzscaling?
It is worth noting that, on average, blitzscaling can only be perceived as actually implemented from its third phase.
After all, it is the stage in which the company:
- it has already invested heavily in its strategy;
- understood the potential of the model;
- managed the associated risks.
Not to mention hits and points for improvement, which are already more evident.
Over time, it will become clearer that blitzscaling boils down to quick action, it is a fact, but also in the consolidation that its managers will learn to identify business opportunities quickly – go from theory to practice in the very short term.
An example to make this clear: Amazon grew dramatically in the mid-90s, from a company with 151 employees to a mega structure with 7,600 employees.
Therefore, aggressive investments were made to expand the brand reach.
Initial losses were diagnosed, and huge debts accumulated, but the return was as impactful as the losses, balancing the process until Jeff Bezos – CEO of the brand – consolidated Amazon in its industry.
In 2016 alone, turnover was around US $ 16 billion, but spending was around US $ 10 billion – and another US $ 4 billion in the settlement of debts.
Risky, but with an effect that proved to be efficient in this particular situation, and in so many other companies as the ones we mentioned at the beginning of the article.
So, did you have any doubts about what is blitzscaling? Share them with us in the comments field of this post!
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