How to Develop a Successful Business Growth Strategy?
Posted on 27th June 2019 at 10:13
High business growth will not be achieved without a performance orientated organisation structure driven by motivated people doing jobs in which they can perform and development.
Directors and employees at all levels must be informed about business growth plans, respect the organisation and its capabilities, be aware and committed to their role and enjoy making their contribution. Achieving high growth performance is as much about people as anything else.
The key components of a high business growth structure are:
The underlying principle in a performance orientated structure is that those at the top (i.e. the directors) delegate to safe hands at the next level; delegation may continue in the same way to lower levels, part time staff and sub contractors.
All On Board/1
A further and important principle is that each member of the team plays a part in delivering the targets embodied in the Business Plan (see below). Inclusivity is vital. The culture must be personal advancement is merit driven.
A fundamental requirement is the development and annual upgrade of a Business Plan. Usually on a rolling 3 year basis. Why fundamental? There are three reasons:
First it is a board approved reference for setting budgets and measuring performance against budget in monthly accounts and other management information;
second it provides a context for staff appraisals;
third it supports proposals to banks, investors or other sources of funding.
The most effective structure is modular in which each business unit represents a coherent skill set addressing a line of business, market segment or specific customer focus. Each business unit in the organisation will have a director or senior manager at the top with a reporting team below. All will be positioned in a job and remuneration graded table, have job specs and be performance appraised bi annually.
Each business unit in the structure must have financial significance, for example, either a profit of cost centre. The Business Plan and extrapolated budgets will be detailed down to business unit level. Business unit performance against targets will be available for review and payment of bonuses (KPI defined) as appropriate.
All On Board/2
Continuing the theme of inclusivity it is very important to keep all staff informed about progress against the Business Plan including performance of each business unit, future developments, recognition of outstanding performance, etc. Usually such staff meetings should be at least bi annual (more frequent if timely) and off site.
Control costs and collect the cash! Build cash reserves to keep ahead of the growth curve by investing in product and service development along with adequate human and technical resources before a lack of capacity becomes evident. Cash is king!
Marketing and Sales
Obvious that high revenue growth requires good digital and conventional marketing. But vital to reward production of quality sales leads, focus on loyal customers (60% of annual revenues?) and achievement of higher conversion rates. Great marketing should empower the best sales persons who for the biggest opportunities are often the directors.
Needed to ensure that performance against budget and the Business Plan is routinely monitored. A board pack must be available to board members in advance and minutes with specific actions produced. Minutes must contain names against actions. Good chairmanship is essential in order to maximise the quality and effectiveness of decisions. Agendas should lean towards strategic debate. Future direction and competitive advantage need to be under regular consideration.
These eight components of a business strategy for high growth all present demands and challenges to aspiring companies. Maybe some companies have all components mastered; others might admit that they have work to do. Either way this is a sure route to achievement of high growth and it is strongly commended to you.
Different Approaches to Business Mentoring
Russ Nathan and Associates work interactively, constructively and in partnership with directors. This can and does take various forms, for example:
We take a brief, discuss with all relevant parties and report back, or,
Round Table Approach:
We focus group an issue, challenge or objective with a relevant group and produce a jointly agreed report, or,
We work through personal, organisational or business development issues with individual board members in order to formulate solutions to particular challenges.
If some external business mentoring would be worth considering, contact us to request a free initial meeting
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