Profitable Growth 201 - Strategy
This series of articles, which I call Profitable Growth 101, 201, 301 and 401, will explore the elements of developing a profitable growth plan. Each blog will cover the following topics:
- 101 - Evaluating the current state and tilling the ground for profitable growth
- 201 - Developing an overall Growth Strategy
- 301 - Innovating in products and markets & finalizing the Growth Plan
- 401 - Executing and managing the Growth Plan
The first step involves taking a critical look internally at the current state of the business, that I call Confronting the Facts. Read this posting here: .
The second step after deciding that your business is really ready for growth is to develop a strategy that will guide profitable growth efforts. Without this step, too often companies struggle with direction and get off track when the going gets tough.
Creating a Vision for Growth
The most important action to take to begin developing a growth strategy is to create a clear vision for the future for the company. The key is to gain consensus within a company about what the Vision for the future really is regarding profitable growth. This will take some time, effort and discussion to gain clarity on the company’s Vision for the future.
My suggestion is to take some time away from work to think about your vision for the company’s future, perhaps take a cold drink out on the deck and try to think as expansively as you can about what the future could be for the company. In particular think about the following:
A Vivid Description: create a word picture to describe the future in 5-10 years for the company. What are the opportunities that exist, how could they be expanded? What will the company be doing in 10 years in terms of products, services, customers, markets, alliances, partners, stakeholders, etc., you get the picture.
- Now think about a really big goal, Jim Collins calls this a BHAG (Big, Hairy, Audacious Goal), one that isn’t a slam dunk but ultimately achievable with significant effort if everyone in the company is aligned and moving in the same direction. You may only have a 50-70% chance of being successful.
These two elements are what it takes to create a Clear Vision of the future. The next step is to form an planning team within the company of the best thinkers and doers that work for the company today and ask them to do the same exercise.
Developing a Growth Strategy
You’re now ready to begin translating the Vision into a short list of key priorities for the next 2-3 years with the planning team. The final step is to translate these priorities into actions and initiatives to achieve them, which should include responsibility, resources, timelines and anything else needed to accomplish it.
You are now on the road to developing a Growth Strategy, stay tuned for Profitable Growth 301 - Innovation.
Charlie Alter specializes in Business Growth, Innovation, and Coaching. Follow Charlie on Twitter at: https://twitter.com/#!/cpalter or check out https://bentbrookadvisors.com.
