Published on the 15/03/2016 | Written by Newsdesk

Some 89 percent of companies across the globe were left exposed to risk in 2015 due to the impact of surprise expansion…

New research from Epicor Software Corporation has lifted the lid on the pitfalls of unplanned business growth. The research, conducted by MORAR Consulting, questioned over 1,800 business leaders from 12 countries around the world.

Of those surveyed in Australia, nearly half (48 percent) of businesses reported growth in 2015 and 66 percent expect to grow in 2016; however, only 10 percent experienced growth in line with their plans.

The Australian business leaders surveyed admitted they often fear the consequences of growth, citing a number of negative impacts when growth is not planned for effectively. Some 39 percent said they worry that business growth puts excessive pressure on operations, damaging quality and customer satisfaction.

A substantial number of local businesses (36 percent) were also concerned that their business IT systems may prove unable to cope with managing a larger, more complex, business model. The top concern cited by CEOs was the perceived loss of customer intimacy that may come about as a result of growth.

Growth also poses a number of concerns about resource availability as business activities scale. Forty percent of Australian business leaders said that as a result of growth, they worry their business might take on large or complex projects that they lack the skillset and technology to deliver effectively, damaging their brand reputation.

They were also concerned that by growing the business, workloads may increase to a level that places too much pressure on staff, prompting key personnel to leave the organisation (44 percent). A significant number (42 percent) of business leaders polled worry they are not personally prepared for the challenges of managing a larger, more diverse business.

Globally, significant levels of unplanned growth were more likely to be experienced by mid-sized businesses with 100-999 employees (37 percent), than larger enterprises with over 1,000 employees (29 percent).

Growth was most likely to be described as painful (in as many as one in ten cases) by smaller mid-sized businesses (100-249 staff) as they make the difficult transition from small to mid-sized enterprise.

Nearly half (48 percent) of business leaders polled in Australia admitted they found growth challenging in 2015; this suggests the necessity for better preparation for expansion.

To support business growth, and prepare for its challenges better, 70 percent of businesses believe that an effective and integrated IT infrastructure is essential. “This adoption of new technologies should position organisations to reap the benefits of newfound efficiencies and pave the way for growth,” said Malcolm Fox, Epicor VP of product marketing.

“Although the majority of businesses intend to grow in 2016, it’s clear that there are significant concerns with regards to businesses ability to deal with growth,” he added. “These concerns are not altogether unfounded, as our research shows even when businesses plan to grow, this growth can still surprise them. The proper time to prepare for growth surges is well in advance.”