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Your 2006 Growth Strategy
At the end of the day, what is every business trying to do?
Grow. More customers, more sales, positive cash flow, larger
deal sizes, higher volume, more billable hours, justification
for higher prices, etc. Ask any hard-working entrepreneur what
he or she is working on and you're bound to hear a comment
related to growth. Why? Because if you're not growing, you're
shrinking. It's why we are all in business - to build or create
something bigger than ourselves. The classic growth strategies
include partnerships, market expansion, acquisition, product
extension, and franchising. While these strategies are well
known, how does an organization come to select one over the
other as a means for growth? And once decided, how is the
company run? Ultimately, I believe growth is determined by
providing value to your customers, the people you hire, the
processes they develop, and culture you choose to build. So
instead of thinking about the detailed strategies themselves,
here are some practical considerations to keep in mind on your
constant quest for growth...
Drive the organization with big vision. Growth requires thinking
big, then executing like crazy. Success is 10 percent
inspiration and 90 percent persistence. But that 10 percent is
critical, otherwise the 90 percent is lost, aimless, and
unproductive. According to Alvin Toffler, "You've got to think
about the big things while you're doing the small things, so
that all the small things go in the right direction." Growth
comes from pursuing a worthwhile plan with measurable rigor.
Account for big goals. Every organization sets goals, but
sometimes they aren't big, and sometimes they are not written
down! A big vision is achieved through accomplishing big
objectives and goals. That's all execution really is - your
organization's ability to achieve goals. First, objectives and
goals must be understood. Everyone needs to understand how they
contribute to and impact the goals. Second, they must be
measurable and actionable by having someone responsible and a
due date. Review regularly and hold people accountable. Create a
culture that people that people feel responsible for "not
missing a due date here." That's all there is to it - it doesn't
have to be complicated, confusing or time consuming.
Celebrate wins along the way. Publicly share big
accomplishments, milestone, project completion, revenue goals.
This sharing drives growth in two ways: 1) It motivates the
people driving those accomplishments to press on. 2) Success and
profit sharing breeds confidence, fueling enthusiasm for further
growth. Everyone wants to be appreciated and we often dwell on
what we failed to achieve, instead of celebrating the small
wins. Do something special for yourself and your team. After
all, it's the journey, not just the destination
that matters.
Enviable growth business happens when you create something with
'a feeling that we're in this together.'
Seek out new ideas. Invite left and right-brained people into
your organization to create a complete "brain trust" of skills
and competencies. You need both perspectives to invent creative
solutions, challenge the status quo, find hidden connections,
new models, analyze data for discoveries, and explore parallel
industries for new methods. Henry Ford could not have grown
faster than everyone else had he not borrowed the division of
labor manufacturing line concept from a meat packing plant.
Walgreens could not have grown as fast had they not changed
their approach to increased convenience instead of big stores,
big ticket items. Southwest could not have grown had they not
reinvented airline service and the hub-and-spoke approach.
Challenge conventional wisdom to solve your customers' issues
and pains with non-traditional approaches.
Ignore distractions. In tandem with new ideas, we must focus!
This is the never-ending struggle for entrepreneurs - too many
ideas, too little resources. In an increasingly competitive
environment, growth comes from being great at one thing at a
time. Succeed at one thing that you know customers need. That
takes focus - focus on the customer and focus on what you choose
to do better than anybody. Use your vision as a filter to keep
out distractions. If the activity is not line with your big
goals, even if it is a good idea, table it and move on.
Empower through ownership. This is similar to accountability,
but slightly different. Inside almost every motivated employee
is a frustrated entrepreneur. As we know, entrepreneurs like to
build and own their work. They are achievement-oriented and take
pride in results. Feed these engines with premium fuel by
assigning ownership. Recognition is the number one motivator.
You can unleash powerful output by clearly defining roles and
responsibilities. Give ownership of a key business metrics. Then
give that individual or team the autonomy and authority to drive
that revenue past the forecast!
Neutralize negativity. There is no such thing as "try", there is
only "do". That's the attitude of a sustainable growth company.
The question is never, "Are we going to make it?" The question
is "What do you need to make it" and the answer is "here's how
we can". But be realistic. Most growth companies don't grow
quickly without sustaining some damage. Consider how to avoid
road blocks and road bumps along the way. Passion overall. If
you're motivated and excited about what you are doing, people
will follow and your organization will grow. This may be the
most important element because it is the true spirit behind
growth.
About the author:
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