Expansion: Accelerating Strategic Growth
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Accelerating Strategic GrowthEscape the powerful forces of "business gravity" and rocket to the next level.
By Margaret ReynoldsEscape velocity is the speed at which an object must travel to defy the forces of earth's gravity. Gravity is a powerful force that is difficult to escape. Equally powerful are the forces of "business gravity" that hold us back from experiencing desired growth.
Escaping business gravity is not a casual endeavor. It requires strategic identification of your opportunities, an alignment of your business to capitalize on them and a dedicated effort to see it through. Here are some suggestions on how to defy your business gravity and achieve growth.
Challenge Traditional Thinking and the Status Quo
What gets in the way of growth? Some of the most common limitations are those we impose on ourselves; such as not spending enough time on strategic thinking, not adequately resourcing new initiatives and continuing to work by habit or industry standard instead of challenging the status quo and asking what could be better? Does "me-too-ness" reign in your industry? If so, you can orchestrate the breakthrough to the next great idea: the Swiffer of mops, or luggage with wheels.
Practice "Outside-In" Thinking
The best ideas come from the marketplace. Look to your customers to learn more about unmet needs and opportunities to provide better service. Growth opportunities occur at the intersection of your company's capabilities and market needs.
Have a Simple, Powerful Focus
Strategy'and growth strategy in particular'is a choice. It is not only what you will do but it is what you won't do. The goal is not to try everything, but to do what you are most capable of doing in a way that sets you apart from your competition. Too many companies invest way too much money being just like their competitors'offering what they do and trying to one-up them. But next year the competitor emulates them and a never-ending cycle of escalating investment with no real market differentiation creates more cost and less profit. Figure out what will set you apart and then focus your resources on delivering it with excellence.
Be Clear About Who Your Target Customer Is
Not all customers are created equally. There must be a match between what you offer and what they want in order for there to be a satisfied and loyal relationship. Companies spend a lot of effort trying to be all things to all people, but usually that means they are mediocre to many. Be clear about your primary target. Walk through an airport and observe the boarding areas: United is mostly business travelers and a few families, while Southwest Airlines is full of families with strollers (and they have special boarding policies for them) with a fair number of business travelers who find the fares appealing enough to trade off first class upgrades. Many times a clear value proposition designed for one audience also can be an excellent product appeal to secondary audiences. So stay focused on your target.
Define How You Want Your Business to Perform
Before your company can execute the direction, employees must completely understand it and what is expected of them. Telling them where the company is going is not enough. Employees and other stakeholders need to know what will be different, what they specifically will be expected to do and how they will be held accountable. Projects, dates and measures all need to be spelled out in detail and receive the proper resources and support. One of the most common mistakes is to communicate this well'but only once. Remember that when people are expected to change, they need constant reminders, reinforcement and encouragement.
Growth Strategy Must be Monitored, Reinforced, Reviewed and Refined
In order to be successful, you must be willing to adapt the plan to changes in the marketplace. The plan contains many assumptions; most of them will be accurate, but some may not be. So be prepared to re-evaluate when necessary and adjust the plan accordingly.
Escape velocity growth is achievable if you look at your business creatively through a marketplace "lens," focus your business on the opportunities best suited to your company and remain dedicated to implementing your strategy. Peter Drucker once said, "Every single pressing social and global issue of our time is a business opportunity." Of the many issues we face today, which one presents your opportunity?
Margaret Reynolds is managing principal of Reynolds Consulting, LLC. (816) 350-7680//
