FIVE EFFECTIVE GROWTH PRACTICES

Growing companies focus on implementing five specific growth practices. Why five? The quantitative results from our research indicate that these five practices are the key ones to drive sustained growth. There are many business practices that are necessary for success, but which are the ones that are most critical? Which ones should every company become an expert in? Which practices are foundational or ‘lifesaving’? These five:

1. Effective Growth Planning – the development of an effective growth planning process which delivers tangible strategies and tactics to grow the business of which the leadership team is aligned with
2. Advanced Customer Management - providing customized solutions to segmented customer groups through unique delivery channels
3. Robust Processes - defining and developing effective and efficient core business processes
4. Differentiated Products and Services - providing superior, innovative and differentiated products and services
5. Strong Core Values developing accepted fundamental principals, standards or beliefs that bond and motivate the organization.

Questions to ask yourself to know if you are effectively implementing the five practices:
 

Effective Growth Planning If we asked your leadership team to define the goals for the business, would we receive unanimous, consistent and specific answers? Have you prioritized your company’s method of competition? Product leadership, Customer Intimacy and Operational excellence are the only three options. Do you have less than 7 tangible goals to accomplish in the next year or two? (A goal is not tangible unless numbers are attached to it.) Have you quantified how much of your growth is going to be through new customers or existing customers? New products or services or existing products or services? Do you review your goals at least quarterly with your team?

Advanced Customer Management Do you have specific customer niches or groups that you target the sale of your products or services to? Women’s religious retirement communities are a niche. Retirement communities aren’t. Do you provide customized solutions to these niches or the same solution to most customer groups? Do you use the same sales or delivery channel to service each unique niche group?

Robust Process Would your leadership team agree upon the core business processes of your business? (Most don’t.) Would your leadership team agree upon the amount of flexibility or efficiency these key processes should have? Have you specifically improved at least half of your key processes in the past two years? Would you define your key processes as ‘best in class” or best practice? How do you know?

Differentiated Products and Services Would your customers define your products or services as innovative or unique? Do you have a ‘world class’ new product or service development process? Do the products or services you’ve introduced in the last 3 years account for at least 50% of revenues?

Strong Core Values Do you have a documented set of core values, mission statement, core principals or beliefs? Would your leadership team unanimously define the company’s core values? Would a survey of your employees indicate that you are really living your values?

If you have doubts about your answers, review our Growth Practices Scorecard evaluation. It will tell you how aligned your leadership team is to the Five Effective Growth Practices and how to become more aligned and focused to accelerate your growth. 

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