#InsideTraceSeries: Responsible Growth Catch Up with Andy Lee

This concept of "Responsible Growth" has been a guiding principle for me over the years as I've grown a recruitment business organically, without debt. Responsible decision-making has been critical.

Perhaps my military, conservative upbringing, with its emphasis on long-term sustainability over short-term(ism), contributed to me, unintentionally, embracing this philosophy. But what exactly does Responsible Growth mean to me? And how can the CEO/CFO partnership work in tandem to achieve it? And how can this be applied to the Recruitment sector.

Putting people first, both internally and externally - if you build a loyal, invested community, the rest should follow.

Defining Responsible Growth

Avoiding cliches, Responsible Growth to me means putting people first. As a business leader, your decisions should centre around your people. Internal decisions should factor in your current teams and plans. External decisions should focus on your customers and the product or service you provide.

Generally speaking, a CFO is likely to be more "responsible" than a CEO by nature. But for Responsible Growth to succeed, it's imperative that this partnership is aligned on company strategy and even moral compass. The beauty and complexity is that while responsibilities are divided, both roles are intrinsic to each other's success.

Key Beliefs for Responsible Growth

I believe achieving Responsible Growth requires some shared beliefs:

1. A reachable vision and mission the whole business can impact
2. 'Honesty at the point of discussion' - pragmatic revenue forecasts and achievable budgets/targets
3. Constant feedback on people - performance, career planning, wellbeing. Even difficult, honest feedback and decisions
4. Focusing more on the journey than the destination
5. Putting the customer at the centre of innovation and pricing
6. Always having excellent communication internally and externally
7. Driving a culture of accountability and high performance

Responsible Growth doesn't mean lacking ambition. It's having faith that if you do right by people both internally and externally, success will follow.

Applying Responsible Growth to Recruitment

So how can Responsible Growth be applied specifically to the recruitment industry? After the condensed boom and bust of the covid bounce in 2021-2022 followed by the 2023 reset, here are my views on better managing sustainable, responsible growth:

1. Pragmatic, pessimistic budgeting before the fiscal year starts
2. Focus on attitude above all else
3. Quality over quantity - a manageable volume of exclusive roles at fair margins positively impacts daily tasks
4. Tap into the fractional market - part-time or consultants on retainers can work well
5. Work towards everyone being a new business winner
6. Don't expect too much too soon from junior hires - be patient with inexperience
7. Delegate - in theory we all want to be elevated
8. Trust people and don't take things too seriously

This Responsible Growth Curve diagram is a handy visual aid.

With purpose right there in the middle, it shows the journey from just following and reacting to what's happening, to being proactive, creating opportunities and leading the way. Let's break down each step:

1. Protecting the bottom line: Make sure you've got a realistic, maybe even slightly pessimistic, budget in place before the start of each financial year. Prioritise quality over quantity - focus on a manageable number of exclusive roles at decent margins.
2. Responding to risks: Be ready to pivot quickly when the market changes, like we all had to during the covid rollercoaster. Keep the lines of communication open and honest with your team, clients, and candidates - we're all in this together.
3. Seeking efficiency gains: Take a regular look at your processes and see where you can streamline or automate things. Consider tapping into the fractional market - part-time staff or consultants on retainers can be a smart way to optimise resources.
4. Identifying risks: Keep your finger on the pulse of industry trends and try to anticipate any potential disruptions to your business model. Encourage a culture of transparency and make sure your team feels comfortable flagging concerns early on.
5. Identifying opportunities: Stay close to your clients and keep an eye out for ways to expand your services based on their changing needs. Encourage your team to share their ideas and insights - everyone brings a different perspective that can help spot new opportunities.
6. Creating opportunities: Invest in developing your team, giving them the tools and knowledge they need to bring in new business. Nurture those relationships with clients, candidates, and industry partners - there's often a way to create win-win opportunities.
7. Leading: Set a clear vision and purpose for your business, and make sure everyone's on the same page and working towards those common goals.Embrace a leadership style that empowers your team, encourages accountability, and drives high performance.

By focusing on these key areas and following the Responsible Growth Curve, you can guide your business towards sustainable, people-centric growth. It's a journey, and it takes patience, trust, and a willingness to learn and adapt along the way.

At Trace, we're committed to helping our clients navigate this path. We bring the expertise, support, and partnership they need to achieve Responsible Growth with their hiring efforts and plans. By putting people first and staying true to our values, I believe we can all build successful, purposeful businesses together. Feel free to reach out to me here to learn a tailored approach to adopting responsible growth for your plans this year.

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