--- title: Research Proves Formal Management Systems Help Start-Ups Succeed description: According to an Accenture Award-winning report, start-ups with formal management systems grow sales faster and hold on to their CEOs for longer... --- This is a search field with an autosuggest feature attached. - There are no suggestions because the search field is empty. # Research Proves Formal Management Systems Help Start-Ups Succeed ![Bob Apollo](https://app.hubspot.com/settings/avatar/78fa41976d534cacbb0e22e151bc6816) Post by [Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo) August 17, 2011 According to an Accenture Award winning article highlighted in the Stanford Graduate School of Business Knowledgebase, recently-founded companies that adopt structured management systems to run their operations in their early years grow **three times faster** than their competitors and have a **lower rate of CEO turnover**… According to [Stanford Knowledgebase](http://www.gsb.stanford.edu/news/research/davila_foster_jia_startup.html?utm_source=Knowledgebase&utm_medium=email&utm_campaign=August-11) the authors found that “Some entrepreneurs mistakenly view management systems as significant inhibitors to creativity and growth" and delay adopting systems such as information-based routines that can maintain or alter patterns of organizational activities. "Failure by managers to recognize the value of systems when they achieve rapid growth in their early years will increase the likelihood that part of that growth and scaling will not be sustainable."  The research - which studied 78 companies, many of them venture backed - concluded that although many young companies initially appear to be run successfully by a founder/CEO who wears multiple hats, as the company grows this management style can prevent the organisation from realising its potential. As one of the companies in the study acknowledged to the researchers “we had management by personality, and it became evident that it wouldn't scale.” ### Systems Extend CEO Tenure I found a [full copy of the report on the web here](http://cmr.berkeley.edu/2011_accenture_winner_davila_foster_jia.pdf). The conclusions make interesting reading for the CEOs of young companies. In a key finding, the study found that the percentage of founders replaced from the CEO position had an inverse relationship to the degree of systems adoption. In other words, significantly fewer companies with strong systems cultures ended up replacing their CEOs than did companies with a weak systems culture. That statistic alone ought to attract the attention of any Founder/CEOs. ![CEO Replacement Statistics](https://www.inflexion-point.com/Portals/41408/images/CEO%20Replacement%20Statistics.jpg) ### Systematically Managing the Sales and Marketing Process The study examined the contribution made by management systems across a number of disciplines, including Finance, Human Resources, Strategic Planning, Product Development, Partnership Management and (my particular area of interest) Sales and Marketing Management. Key aspects of the latter included sales target-setting, compensation and recruitment policies, market research and customer feedback systems, the creation of standardised sales processes and formal pipeline management systems, and the implementation of CRM solutions. The conclusion is simple: companies that have robust systems in place grow faster than organisations that do not. But many CEOs face an entrepreneurial dilemma - won’t imposing formal systems smother the creativity, flexibility and agility that differentiate us from our larger competitors? In our experience, sensible systems implementation can dramatically improve the quality of sales and marketing execution without impacting these important qualities. ### The Systems CEOs Should Focus On We’ve identified a handful of systems that can help to improve the quality of sales and marketing execution. Here’s what we recommend CEOs focus on: Implementing a culture of active listening and continuous market research and testing through techniques like [voice of the customer studies](https://www.inflexion-point.com/the-methods-we-use/voice-of-the-customer/) and [win-loss analysis](https://www.inflexion-point.com/the-methods-we-use/win-loss-analysis/). Establishing [ideal prospect profiles](https://www.inflexion-point.com/the-methods-we-use/ideal-customer-profiles/) that capture the common demographic, structural, environmental and behavioural characteristics of your most valuable potential customers. Focusing your marketing messages on the [issues, trends and trigger events](https://www.inflexion-point.com/the-methods-we-use/trends-and-trigger-events/) that are most likely to cause your prospects to start searching for solutions. Creating a standardised sales process that reflects the winning habits of your top performers and industry best practice, as well as your prospect’s typical [buying decision process](https://www.inflexion-point.com/the-methods-we-use/the-process-of-buying/). Consistently [qualifying sales opportunities](https://www.inflexion-point.com/the-methods-we-use/consistent-opportunity-qualification/) against clearly defined criteria that are continuously refined in the light of experience. Implementing an evidence-based [sales pipeline management system](https://www.inflexion-point.com/sales-process/proactive-pipeline-management/) that pays particular attention to the velocity and stage-by-stage conversion rate of sales opportunities. ### Put Simple Systems in Place, and Continuously Refine Them There’s no point (and little value) in implementing complex, cumbersome systems to address these important areas. Our advice is to make smart choices about what to monitor and manage, implement simple lightweight systems, review them regularly, and continuously refine them. Reinforce the ones that are helping you drive the business forwards, and adjust or eliminate those that don’t. What’s your experience of implemented structured management systems in relatively early stage companies? Did they prove to be a help or a hindrance? And - over and above the list above - are there are other sales and marketing related systems you would recommend as being effective for companies in the growth phase?   ###### Tags: [B2B Buying Process, ](https://www.inflexion-point.com/blog/topic/b2b-buying-process) [Scalable Systems, ](https://www.inflexion-point.com/blog/topic/scalable-systems) [Thought Leaders](https://www.inflexion-point.com/blog/topic/thought-leaders) ![Bob Apollo](https://app.hubspot.com/settings/avatar/78fa41976d534cacbb0e22e151bc6816) Post by [Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo) August 17, 2011 Bob Apollo is a Fellow of the Institute of Sales Professionals, a regular contributor to the International Journal of Sales Transformation and Top Sales World Magazine, and the driving force behind Inflexion-Point Strategy Partners, the leading proponents of outcome-centric selling. Following a successful corporate career spanning start-ups, scale-ups and market leaders, Bob now works as a strategic advisor, mentor, trainer and coach to ambitious B2B sales organisations - teaching them how to differentiate themselves through their provably superior approach to achieving their customer's desired outcomes. [Follow me on my website](https://www.inflexion-point.com) [Follow me on LinkedIn ](https://uk.linkedin.com/in/bobapollo) [Follow me on Twitter ](https://twitter.com/bobapollo) ### Comments ###### Related Articles ### [Research Shows That Growing Companies Adopt Cloud Computing Faster](https://www.inflexion-point.com/Blog/bid/57765/Research-Shows-That-Growing-Companies-Adopt-Cloud-Computing-Faster) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Mar 03, 2011** Recent research by MarketBridge confirms that migration to the “Cloud” is accelerating - and that some fascinating patterns ... ### [B2B Sales Pipelines: When Do You Want to be Told the Truth?](https://www.inflexion-point.com/Blog/bid/66151/B2B-Sales-Pipelines-When-Do-You-Want-to-be-Told-the-Truth) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Jul 11, 2011** An old colleague of mine - a highly experienced sales leader with many years of sustained quota achievement to his credit - ... ### [3 proven ways to shorten your average sales cycle](https://www.inflexion-point.com/Blog/bid/82814/3-proven-ways-to-shorten-your-average-sales-cycle) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Mar 08, 2012** The length of the average sales cycle is a concern for many B2B sales leaders, and with good reason: successfully shortening ... 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