Annet Baron and Michel de Vreede, an entrepreneurial couple with a passion for tulips, have grown their family business, De Vreede Tulips, from its humble beginnings. What began as a small-scale business, focused on breeding tulip bulbs for the local market, has now grown into an international company exporting high-quality tulip bulbs to more than 20 countries.

They are now in the flow phase. Following years of hard work, they have successfully navigated the growth phase. The company is currently operating at full capacity, but Annet and Michel are aware that this is also an opportune time to conduct a critical review of the business. They decided to conduct an internal review to ascertain whether they were in fact in the flow phase and to identify the challenges and opportunities that this phase presents

Do the company’s vision and core values remain a driving force in their business operations?

On a sunny morning, with the aroma of freshly cut tulips in the air, Annet and Michel are seated at their kitchen table. “What is your assessment?” Michel inquires as he takes a sip of coffee. “Are we truly aligning our actions with our vision and core values?”
Annet gives a nod of agreement. “I believe that we are.” Consider our personnel. Our mission of sustainability, quality, and innovation is embraced by all our employees, from field workers to office personnel. We have always stated that our objective is not merely to sell flowers, but to make a positive contribution to the world through the sale of our tulips. This is reflected in our operations. Our team members take great pride in their work. They utilise sustainable methods, consider improvements and are fully committed to the products we deliver.

Michel smiles. That is correct. Recently, when a large order was sent to Japan, our logistics manager, Jeroen, proposed a more sustainable packaging method. This approach not only reduced costs but also had a positive environmental impact. This demonstrates that our core values are not merely words on paper, but are genuinely reflected in our actions.

Is the operating model delivering the desired results?

Annet and Michel then proceed to discuss their operating model. The company has established a transparent structure in recent years, with clearly defined roles and responsibilities. “We have established effective processes and systems, and I am pleased to see that everything runs smoothly,” Annet states. The sales department works closely with production and logistics, enabling problems to be resolved swiftly. ‘We no longer experience many unexpected delays or problems.’

“Correct,” Michel concurs. “Furthermore, our decision-making process is also streamlined.” All personnel are aware of their respective responsibilities. This enables us to respond more rapidly to market opportunities and customer requests.

Are the company’s goals clear?

“Do you believe our objectives are clearly defined for all employees?” Michel inquires of Annet. She gives a positive affirmation with a nod. I believe that to be the case. A strategic plan has been devised and reviewed on a quarterly basis with the team. It is clear to all that our objective is to grow not only in volume, but also in quality and customer satisfaction. It is not simply a matter of achieving a certain number; it is also about how we attain those numbers.

Furthermore, Michel notes that this commitment is evident in how our employees discuss their work. They have a clear understanding of their role and how it contributes to the company’s overall objectives.

Balancing flexibility and structure

Another key topic for discussion is the optimal balance between flexibility and structure. Michel states, “We have a robust structure in place to ensure efficient operations, while maintaining the flexibility to respond to changes.” To illustrate, the introduction of the new tulip variety last month is a case in point. The team was able to adapt the entire process within a few weeks without any delays to other projects.

Furthermore, Annet adds, ‘We were also able to respond rapidly to increased demand from North America.’ Our team demonstrates creativity within the defined frameworks, which indicates that we have successfully achieved the desired balance.

Overhead costs are under control

Michel and Annet monitor the increase in overheads carefully. “Our overhead costs did increase,” states Michel. “This is to be expected given our growth and the complexity involved.”

“The most important thing is to maintain control of those costs,” Annet replies. ‘We have implemented cost-cutting measures where necessary, without compromising the quality of our products or services. “This approach has proven effective thus far.”

Management and Strategic leadership

The final section of the report considers the role of the management team. “It is essential that the management team is not solely focused on operational matters,” states Annet. ‘It is more important than ever to provide strategic leadership. We ensure this is addressed by scheduling regular strategic sessions, which allow us to consider not only day-to-day issues but also the future.

Michel indicates his agreement. Indeed, we have encouraged the team to adopt a long-term perspective, rather than focusing solely on day-to-day operations. This is one of the reasons why we are currently in the flow phase.

The Flow Phase

Annet and Michel have identified that their business is in the flow phase. They have established a company that is not only experiencing growth but also operating in a sustainable and effective manner. By living their vision and core values, having an effective operating model, pursuing clear goals, maintaining a balance between flexibility and structure, keeping overhead costs under control, and providing space for strategic leadership, they have established a robust foundation for continued success.

However, they are aware that the flow phase is not the final stage. “We must continue to evaluate and adapt,” states Annet. ‘Provided we continue to do so, we will remain in this flow phase.’ Michel smiles. Precisely. “As long as we continue with our current approach, I am confident that we will achieve the best results for our company and ourselves.”

What phase is your company in?

The flow phase represents a new milestone in a business’s development. Your company has successfully navigated the growth phase and is now operating at full capacity. Despite the apparent smooth operation of the business, how can you be sure that you have reached the flow phase? By posing a series of targeted questions, you can gain a deeper insight into whether your business has reached this phase and the challenges and opportunities that accompany it.

1. To what extent are the company’s vision and core values reflected in its day-to-day operations?
2. Is your company’s operating model effective and well-functioning?
3. Are the company’s objectives clearly defined and effectively pursued?
4. Is there an appropriate balance between flexibility and structure?
5. Have you observed an increase in overheads, and if so, how are you addressing this?
6. Is the management team spending an excessive amount of time on administrative tasks, rather than focusing on strategic leadership?

By answering these questions, you will gain a deeper understanding of whether your company is in the flow phase. This insight will enable you to implement the most appropriate strategies and decisions to maintain and further strengthen your company’s success in this phase.

This blog was published on October 29th 2024  by the Benelux thexton armstrong team.