The main argument of this article is based on the premise that the experience in companies of all sizes worldwide, clearly indicate to their executives, to pursue growth through multiple paths of action.
We can summarize these pathways into three main groups:
1.- Analysis, update - adaptation and maturity of the portfolio or growth in segmented markets based on specific portfolios (Momentum of the portfolio)
3.- Defined marketing and advertising strategies
4.- Market share gain (SOM)
Experience shows that companies that undertake perfectly well defined actions simultaneously in two or three of these groups simultaneously and significantly successfully, grow faster and achieve better return margins than those that stagnate in only one of these groups. - even when management is extraordinary -.
During difficult times of global economic downturn, companies that have managed to sustain themselves better in turbulent times, and applied these groups to their global business strategy, grew more rapidly.
The commercial contexts, permanently competitive, oblige the Companies to define and redefine their growth ambitions, consequently setting as goals the extraordinary planning - management - monitoring of their sources of growth, from examining how they have turned out and how they perform today in these; and even more, how their results will improve from their combination.
It is a fact that companies grow at higher rates when their offices and / processing plants are geographically in emerging markets, be they local, regional or global; more than in already developed economies or mature markets with closed circles of competitors.
It is evident that the percentage growth rates in both mature and emerging markets allow differentiating high growth in small companies that have small cost bases, which appears to be large and sustained growth, however, it is also evident that both large companies and small companies face the same challenges in shrinking markets, but the advantage of small companies over large corporations will always be the flexibility and initial attractiveness of small companies, with good service plans and personalized contact, and in these cases growth is expressed Quickly into market share gain as growth measurement sensor.
It is possible that the disadvantage of large corporations is that their customer base is so large that they do not initially perceive this market loss as significant, until their competitors begin to mix their strategies and break inertia with aggressiveness and persistence.
We can emphasize at this time, that the portfolio update / maturation combination accompanied by an excellent advertising and promotion strategy is more critical to the growth of large corporations than gaining market position; which usually hold significantly high market positions in reasonably mature markets.
For small companies that are growing or have recently entered the market, different growth paths are observed. The market share gain represents at least 4 to 5% points of their annual growth - if they make measurements and differentiations of their sources of growth - compared to the minor role that this measurement plays in large companies.
In day-to-day results, these differences are not surprising. Small businesses usually grow faster than their own industries because they are not restricted by size, and their growth is based on new business models they can offer without fear of cannibalizing their own lines.
However, we find here a lesson for large companies: study the actions of small companies and consider that they can serve as a management model for smaller divisions of their own and compare not only in terms of products, but also in mixtures. your growth management.
Seen through this new lens, it may help Business Leaders to set their goals more concretely, and that their ambitions correspond to a scrupulous and very realistic study.
Now I ask you, do you have the right Leaders on your team for the extraordinary application of your sources of growth?
The difference is in the management philosophy of your company, and in getting your Leaders to increase their skill levels:
1.- Impact to clients, current and potential
Continuously take actions that add value for customers
2.- In-depth knowledge of the “bowels” of the market
Ability to see beyond present contexts
3.- Effective orientation to results
Highly committed approach to better team performance
4.- Leadership of change
Practice what the team preaches and inspires
5.- Team Leadership
Actively engage the entire Team
6.- Collaboration and influence
Motivate others to work on themselves
7.- Strategic orientation
Defining strategies for your own area
Article questions
1.- How to evaluate the growth results of the last three years and how to set growth rates for the next three years?
2.- How to properly identify these sources of growth?
3.- What could be the main barriers to growth?
4.- How to evaluate these skills in your team leaders to structure your sources of growth? How can you plan the instruction to increase these skills?
