Profitable Growth Fundamentals
July 2, 2011
Every organization requires a different growth strategy depending on where they are in the business lifecycle, organizational goals and direction, and capabilities. Additionally, there are a multitude of other factors such as the economy, competitors, and technology outside of their control that directly impact an organizations ability to create sustainable growth. Subsequently, each business has to evaluate their current environment and depending on where they are situated, develop initiatives to move them forward. Almost any organization strives to attain sustainable growth either organically or through other means in an effort to achieve top line growth and bottom line results.
Fundamentals – Who, What, Where, When, and How
With increasing competition and the internet paving the way for ease of market entry, companies must rely heavily on their employees’ creativity, imagination, idea generation, and opportunity capitalization to realize sustainable growth. Executives often set the strategic direction and mandates for the business, but without the right employees to execute initiatives and complete the necessary work on a day to day basis, the strategies and corporate plans are worthless. Organizations need to focus on empowering employees, enhancing the work experience, and bringing out the best in every member which leads to improved quality, cost structure, culture, and customer service. This not only creates a truly engaged workforce but also sets the foundation for continuous growth.
For an organization to truly manifest the characteristics required to attain sustainable growth, there must be balance in the four major functions – financial, customer, process, and learning & growth. Businesses that are able to consistently refine their goals, adapt to market conditions and fluctuations, respond to competitor threats, and sustain their competitive advantage are well situated for continued success and growth.
Organizations must continually review strategies and goals to ensure they are properly aligned with the direction of where the business wants to go. Organizational road maps, typically 1-5 years forward looking, are powerful tools utilized by Executives in many organizations to display and ensure alignment with business goals, objectives, and desired results. However, they require consistent monitoring and updating as business needs and environments regularly change.
A critical aspect in creating a sustainable growth strategy is knowing when to modify plans, change strategic direction, or shift resources to capitalize on an opportunity. In the ever increasing competitive market, timing is everything! If all four of the major quadrants are balanced and Executives are fully engaged in the process, they will be able to make informed decisions on how to move and when to move which are critical factors when capitalizing on opportunities or leading change. Change is inevitable; innovation and continuous improvements are necessary for organizations to remain competitive and continuously grow.
Businesses that are able to develop strategic alliances and partnerships with customers and suppliers have a strategic advantage over competitors. Organizations that are able to establish mutually beneficial business contracts with suppliers while providing customers with great products and timely delivery are well situated for long term growth and capitalization. Additionally, by leveraging best practices, process innovation, and core competencies, organizations can maximize revenue streams through increased customer partnerships while improving processes and reducing operating costs.
Creating a sustainable corporate growth strategy requires many different functions to work in unison and continuous monitoring and execution of the fundamentals. A balanced business focusing on the financials, customers, processes, and learning and growth opportunities will result in fully engaged employees and be well positioned to execute on or react to possible threats or opportunities that may arise. Feel free to contact Trindent for more details on this business challenge.