Chipotle lost over $600 million in revenue — and it started with a training problem during their rapid growth stage...
By the mid-2010s, Chipotle had grown to over 1,700 locations.
More locations meant more complexity. People were hired fast and put to work even faster. Processes that worked at 500 locations were being stress-tested at 1,700.
Between 2015 and 2016, foodborne illness outbreaks spread across multiple states. Over 1,100 people were affected. Employees also reported being pressured to work, even when sick.
The US Attorney said Chipotle "failed to ensure that its employees both understood and complied with its food safety protocols." This was a black eye for a company that prided itself on fresh ingredients.
The result: $600 million in lost revenue, a 50% stock drop, a $25 million fine, and a complete overhaul of their TRAINING SYSTEMS.
They shut everything down. Rebuilt the training infrastructure from scratch.
This is what happens when a business grows faster than its leaders can manage it. A simple oversight can turn into national headlines and federal court cases.
Of course, it's not always this dramatic. But the pattern is the same.
I call it The Growth Trap.
And it doesn't only happen to large publicly traded companies. I've watched it happen to 80-person regional businesses, 150-person service companies, and 300-person multi-location operators.
The Growth Trap doesn't care about your size. It cares about whether your leaders are ready.
What's an example you've seen — big or small — where growth outpaced leadership?
#TheGrowthTrap #LeadershipDevelopment #BusinessGrowth
Chipotle lost over $600 million in revenue — and it started with a training problem during their rapid growth stage...
By the mid-2010s, Chipotle had grown to over 1,700 locations.
More locations meant more complexity. People were hired fast and put to work even faster. Processes that worked at 500 locations were being stress-tested at 1,700.
Between 2015 and 2016, foodborne illness outbreaks spread across multiple states. Over 1,100 people were affected. Employees also reported being pressured to work, even when sick.
The US Attorney said Chipotle "failed to ensure that its employees both understood and complied with its food safety protocols." This was a black eye for a company that prided itself on fresh ingredients.
The result: $600 million in lost revenue, a 50% stock drop, a $25 million fine, and a complete overhaul of their TRAINING SYSTEMS.
They shut everything down. Rebuilt the training infrastructure from scratch.
This is what happens when a business grows faster than its leaders can manage it. A simple oversight can turn into national headlines and federal court cases.
Of course, it's not always this dramatic. But the pattern is the same.
I call it The Growth Trap.
And it doesn't only happen to large publicly traded companies. I've watched it happen to 80-person regional businesses, 150-person service companies, and 300-person multi-location operators.
The Growth Trap doesn't care about your size. It cares about whether your leaders are ready.
What's an example you've seen — big or small — where growth outpaced leadership?
#TheGrowthTrap #LeadershipDevelopment #BusinessGrowth
High-growth organizations create massive opportunity for career growth.
They also expose leadership gaps.
My latest conversation with Nicole Fallowfield, SVP, Talent BP at Unison Risk is all about how leaders can thrive through growth, ambiguity, change, and controlled chaos.
@garyvee Truth! It takes a level of emotional intelligence, care and commitment to pull this off. Emotional intelligence can be taught. I’m not sure you can teach someone to care. You can however give them compelling reasons to care
It’s funny how so many companies obsess over customer surveys and completely ignore employee surveys.
Your team is your first customer. If you take care of your team, they will take care of your customers.
The biggest reason why companies don’t invest in regular leadership training is assumptions.
They assume their leaders are equipped
They assume they’ll just figure it out
They assume they’ll get around to it
They assume wrong.
@LewisHowes It often is. Especially for the type of leaders I work with. Their entire world is rapid movement and demand. Slowing down is when strategy can take shape, problems can be solved and energy can be recharged.