It always seems impossible, until it is done.
Many companies fail to achieve their desired growth targets in revenue and profitability. In fact, studies report success rates as low as 20%. Why is growth so elusive? Based on our research and experience, there are 2 major reasons
inadequate consideration of opportunities within the core business or within new customer sub-segments.
an organizational infrastructure that can not support successful execution.
Integrating strategy with execution infrastructure.
1. Strengthen the execution infrastructure by investing in safe bets.
A firms infrastructure must be up to a standard that supports successful execution. Achieving this requires (1) eliminating departmental or regional silos, (2) utilizing leading indicators and performance drivers that align with the strategy and (3) growing leaders at all levels (managerial / non managerial).
2. Initiate a process to identify strategies with a high probability for success.
Begin the process by considering the growth potential within the core business and growth potential associated with creating innovative value propositions for underserved customer groups. The next step could be expanding into new geographic markets which has the advantage of building a larger customer base, but often at the cost of higher risk.
Right project selection, leadership in running the initiative, crystal clear execution process of strategies and concepts leads to significantly higher revenue and profit growth. This shows a survey in top management of mid-sized manufacturing companies from 2013: What distinguishes growth champs from the other companies?. This survey has been carried out by MCG in cooperation with the institute of marketing of the Johannes Kepler University of Linz, Austria.