In the early stages of a company's development, and with a small turnover, procedures can sometimes be informal. Very small organisations are staff by generalists, who can more or less turn their hands to anything. With new firms this may not cause problems.

When a firm grows and is successful, what was appropriate for a very small firm may not be appropriate for firms with say 50 employees and a turnover of £5m+. In addition, whereas generalists could cover a range of functions and tasks for small firms, larger companies require more specialists as the business becomes large and more complex.

Having worked for companies of all sizes, Collingwood knows that the level of organisation and process required at a 20-employee company is not the level of organisation and process required at a 60-employee company. Things become different again in a 200-employee company or division.

When a company has inappropriate organisation and process, the result is a drop off in profitability or further growth. This occurs where processes or either too complicated or not comprehensive enough.