Recommendations for increasing the probability of success
Regardless of which growth strategy is selected, a firm’s infrastructure must be up to a standard that supports successful execution. An on-going commitment to creating such an infrastructure is a ‘safe bet’. Achieving this requires (1) eliminating departmental or regional silos, (2) utilizing leading indicators and performance drivers that align with the strategy and (3) growing leaders at all levels – managerial and non-managerial.
2. Initiate a process to identify strategies with a high probability for success.
Three customer growth strategies are presented below: (1) Growing the core business, (2) Growing by sub-segmenting customers and (3) Growing adjacent opportunities. It is recommended that the senior leaders begin the process by considering the growth potential within the present core business and/or the opportunities and growth potential associated with creating innovative value propositions for underserved customer groups.
3. An evaluation of the overall performance of the core business follows. This involves measuring and benchmarking profitability, rate of revenue growth and the firm’s reputation with its most important customers.
Such an assessment will raise a number of questions. For example:
- In what direction is each of these key indicators headed and why?
- Who are and who are not the core customers? Why?
- What is the firm’s key competitive market differentiator? How can it be strengthened?
- Is the core business under major threat?
- Are there attractive growth opportunities within the core?
. Organization capabilities are processes that are strategic and deliver a high level of value to customers. For example, a firm may have the capability to:
- Successfully entering new markets,
- Create excellent new products or services which appeal to customers, or
- Provide an outstanding level of customer service.
Note that the three organization capabilities selected are vital to the success of specific Customer-Focused Growth Strategies.
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