ORGANIC GROWTH Vs CRITICAL MASS

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ORGANIC GROWTH Vs CRITICAL MASS

Whether it’s an individual or a business enterprise or for that matter any institution or an organisation, the simplest way of its creation and development has been organic growth, not expressed in management terminology. Organic growth is time taking and but its success in creating robust institutions / organisations is higher. Nonetheless, other business enabling requirements and good / sustained leadership remains the key in any volume related model. In contrast is the critical mass model, created reasonably big at the outset itself and then scaled.

Critical Mass model presupposes the successful collation / collaboration of skills / competencies, visionary leadership and funding to start at operational levels. One simple example would explain it all; we have all heard of schools starting from one or two teachers and five / ten students growing up into massively successful ones in 15 / 20 years time. Robust and rock solid, built brick and brick. In contrast a modern day school with hundreds of crores of funding, all infrastructure, hiring of teachers as per norms / business model and staring with 1000/2000 students and hitting the roof in just two / three years. This is the critical mass model.

So is the case of businesses. The Haldiram or WIipro Way don’t seem to be the favoured models, Flipkarts, Udaans and Cult Fits are. The gestation period is to be bridged as much as one can, so that it becomes economically viable, ensuring very high returns in a short time. Might be the IT behemoths model is propelling this model of Critical Mass model growth. The immense opportunities of the digital age and the capability of fund raising lies behind the creation of big businesses right from the word go. In reality, the Google and Apple have grown the organic way, though abridged, compared to the creation of earlier mammoth business enterprises.

Whatever might be the route, critical mass has to happen, for business to move to a different level. For educational institutions organic growth model still seems worthwhile. The emotional connect with the organisation is another key factor, long duration familiarity binds it further. Enduring business entity or institution is the final destination.

TRUE CRITICAL MASS TRANSFORMS BUSINESS TO A DIFFERENT GROWTH TRAJECTORY.

Sanjay Sahay

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