Since its foundation in 1999, EU Design has been growing slowly, but steady. Nonetheless, some strategic and operational decisions in the past may have fostered problems, which increasingly hampered daily business. These problems have induced the management to rethink whether a mainly informal management style was still appropriate to meet future challenges, and if not, which measures could be taken to amplify the company’s performance.
Management Risks associated with Growth in Creative Industries
The most common risk in expanding companies is the unintended adherence to informal structures that do not sufficiently cover newly upcoming needs. Examples are decision trees, rewarding and training systems, responsibilities, and/or communication channels that do not support a growing organization. Since creativity is supposed to be endorsed by an atmosphere of freedom and flexibility, and considered vital in the creative industry, managers might, more than in other growing businesses, be tempted to abstain from implementing necessary formalities. This behavior, often outcome of a lack in overall strategy, leads to a more successive allocation of newly occurring tasks and responsibilities in daily business. However, the farther this development goes, the more employees are likely to be faced with double responsibilities, time-consuming complexities and frictions, and/or poor communication. These undesired disorders pose a serious problem, since they are able to considerably decrease efficiency, and thus, hamper other measures like profit and innovational strength.
All these symptoms can be observed in the case of EU Design. Examples for the informal management style of Berardi and its consequences are structures like unnecessarily complex or long decision trees and ways of communication. Also, problems with incentives occur. Without a properly reasoned rewarding system, efforts as well as idleness might not be noticed, especially when the distance...