“Conformity is the jailer of freedom
and the enemy of growth.”
— John F. Kennedy
Growth is part of our strategy; a recent study presented the following ideas.
“Companies seem to recognize that sticking with the core businesses alone will not get them to their growth objectives. They expected only 45% of their growth to come from extending existing lines of business to existing customers. The rest would be made up by:
• new products and services (24%)
• entry into new geographies (17%)
• appealing to new customer segments (14%).
In particular, most respondents expected growth in emerging markets to become more important, as the underlying growth rate in developed economies remains sluggish. Interestingly, the work of many observers suggests that venturing into such new spaces may be far more difficult and risky than companies anticipate, particularly if they are counting on substantial growth.”
Growth needs and Gaps might be segmented into:
• Innovation — capturing and pursuing new ideas – R&D
The capability gap — Most recognized the importance of top management support, project management expertise, identifying unmet customer needs, and understanding new segments in emerging markets, Many firms didn’t perform as well as they need to in these areas.
• M&A –buying or acquiring is one piece of a growth strategy.
The M&A gaps for family owned firms are normally quite large. Most have limited experience, resources and confine this confine this issue to the acquisition of other firms. The purchase of equipment, software or the addition of new staff are included in this fissure
• Stage/Gated processes to help manage growth-
The process gaps for explosive growth are in a number of places. Some of the potholes include no owner, no costs assigned to the development phases and a closure/transfer event. Too often projects just linger there is no gate or event for ending projects or for capturing the value created in projects. Many firms have or use pieces of a gated system but lack the linkage and rigor; to have relentless adherence to the process.
Growth is challenging.
Growth gaps require discussion, vigorous debate and candor.
In mathematics and game theory zero sum game is a critical rule to keep in mind. A zero-sum game is a mathematical representation of a situation in which a participant’s gain (or loss) of utility is exactly balanced by the losses (or gains) of the utility of the other participant(s).
Stated another way if we organizations fail or falter to achieve their growth visions by failing to resource properly and adjust. A firm’s growth should not be confused with its business cycle; growth requires a longer term look and consideration of perceptions vs. Facts. Every theory of economic growth includes the need for resources. Technology, improved production process improve yield and can reduce costs.
Growth is the evolution of a firm.
In Family Businesses part of the discussion is the evolution from entrepreneurial to managerial to professional. Perhaps another view is the evolution from One Man Band to Quartet to Symphony; part of the growth is resources.