For most organizations, regardless of the industry, one of the most important questions that leaders continue to ask is: “How do we achieve sustainable growth?” Attaining such growth can be a challenge – for even the most ambitious.
Finding the right growth strategy is critical: Growing too quickly can affect financing options, while companies that don’t grow fast enough can risk losing their competitive edge. New Jersey organizations, which are some of the country’s most entrepreneurial and fastest growing, are frequently seeking guidance on this topic.
Client research has shown that some of the most successful and profitable companies have engaged in seven key drivers to achieve accelerated and viable growth:
Customers: Leading companies make customers their focal point. They understand that by putting customers’ needs and wants first, they can achieve a competitive advantage. Even after becoming market leaders, these companies remain focused on engaging and satisfying their customers.
People, Behaviors and Culture: Smart businesses build an environment that values diversity along with a commitment to attracting and retaining the right people. Not only do they hire high performers, they also focus on people who share the company’s vision and culture.
Digital, Technology and Analytics: By leveraging data, leaders can make better, quicker and smarter decisions that improve business performance and manage risk. Information technology is fundamentally changing the dynamics of customer interaction. Top organizations harness this power in order to create a competitive advantage.
Operations: The operating model is the link between strategy and the ability of the organization to deliver on that strategy. Successful companies consistently analyze their operations and make tweaks as necessary.
Funding and Finance: All businesses need money to grow. It is critical that they receive the proper backing for the current stage in their life cycle. Market leaders seek funding from external sources as well as take full advantage of internal sources of funding, such as better management of working capital.
Transactions and Alliances: Successful partnerships and strategic acquisitions are often the pathway to enhancing growth, competitiveness and profitability.
Risk: Companies that aim to become market leaders shouldn’t avoid risk, but rather approach it intelligently to reap its rewards and accelerate their growth.
Broadening the conversation around growth from traditional areas of focus such as people, processes and technology to include more of the seven key drivers will increase the chances of achieving and maintaining desired results and progression.
About the Author: Anthony Sgammato is a partner, the New Jersey Strategic Growth Markets Leader and The Entrepreneur Of The Year® New Jersey Program Co-Director at Ernst & Young LLP.
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