WHY GROWTH STRATEGY?
Growth decisions can be uncertain and risky without proper strategic guidance. Best practices, such as a growth framework, and outside guidance can help to eliminate familiarity bias where an executive makes a decision based upon their past experience or comfort with a particular strategy.
Many times, the market situation is different or may seem the same. Thus, growth strategy requires analyzing future market opportunities in the current market and determining where to expand business boundaries. These are major decisions to be made with scare resources when the competition and the market are changing at the same time.
A change in growth strategy can be like determining when to open a bottle of wine. You don’t know if you are too early, too late or timing it just right. It is the same with growth strategy. If you wait too long to change or misread the industry, growth can easily stall.
Our approach provides a plan with healthy, diversified growth ensuring a good mix of existing market growth and changes in portfolio makeup to sustain competitiveness and growth.
We focus leaders on topline growth when developing growth strategy. Doing something new is difficult but the reward is a unique position or angle to attract demand. It also may take time to determine how to access a growth opportunity profitably. If bottom-line is the first filter, it may filter out really valuable growth opportunities before creative solutions are found. Profitable growth is a function of good strategy and creative solutions to operational effectiveness.
Too much focus on profit in the early stage of growth explorations will short-change the list to mainly “me-too” solutions because success will be judged only with existing market data which means it’s been done and successful. The team is merely vetting and copying an existing opportunity.
A part of growth strategy is also to know when to exit businesses and refocus resources on the future and makeup of the portfolio or business.
We develop growth strategy from a broad viewpoint and determine the market potential of the existing market, gap the growth goals and identify the resources needed/available to determine the growth roadmap. Growth strategy should have a mix of closer-in, existing market opportunities as well as assess where there is opportunity to expand the boundaries of the business, always considering the context of market and situation of the business.
Growth Strategy Development Growth strategy development typically defines a 3-5 year horizon defining growth goals, growth platforms or initiatives setting up agile market learning with a portfolio viewpoint versus a single project.
Make, Rent, Buy Analysis It is important to think broadly about growth and we define three generic growth strategies to help expand thinking and drive a broad-based growth strategy to maximize the ways in which to complete:
Make – do it yourself, where an innovation strategy is likely focused Rent – collaborate or access new capabilities and assets with outsiders, partnership strategy including licensing Buy – acquire capabilities, assets, know-how which is an acquisition focused strategy
Typically identifying viable growth opportunities is first and then determining the best growth strategy from these options.
Growth Assessment Growth strategy may require an assessment first to determine the opportunity within existing markets. Diversification to expand business boundaries should be considered in context of what opportunities to meet a growth goal are available in existing markets. Diversification and risk are critical choices. If these types of growth strategy decisions have not been made or vetted. We would conduct growth strategy assessment as a precursor to help determine and narrow growth strategy development choices.
Through our approach to growth strategy, we can help you:
- Decide the best growth strategy and define the initiative or roadmap
- Deliver a roadmap of initiatives for growth
- Assess an existing growth strategy or growth initiative
- Present a business case or alternatives for growth
Whatever the growth challenge or opportunity, we have experience and methodology to ensure you make the best decisions and choices about where you allocate resources for growth.
Enabling Strategies for Growth
There are also enabling or execution growth strategy engagements that we also deliver focused on a specific growth strategy including:
We specialize in strategic partnership development because many times doing new things leveraging or learning from others. In our services, we combine strategy and action to move smoothly from the typical strategic theory of partnerships to executable partnership options that provide new capability and resources to drive significant new revenue. We use an agile approach to initiate contact and explore possibilities and market testing to maximize speed to access opportunities.
Strategic partnerships can tweak growth rates higher by leveraging outside capabilities to increase speed-to-market and competitiveness versus more closed, traditional organizations as well as test growth options that others are still pondering.
We utilize a proprietary global strategy framework to develop a focused roadmap of initiatives; our services may include organization optimization to improve coordination considerations and clarify decision-rights, collaboration; critical consideration in our approach is to design a global launch strategy and a coordination model for priority setting when executing across regions
Assess capabilities and identify categories, industries and specific targets for acquisition to fill a growth gap or opportunity
Market & Customer Strategy
Strategy assessment or development including customer research simulating initial interest in confidential explorations of opportunities for growth, competitive positioning or new market entry decisions