Elements of a good growth strategy

Ideally a good growth strategy must deliver three things: (1) sales growth, (2) profit growth and (3) an increasing percentage of market share.

The levers that are more than likely going to deliver these things are: (1) easy market assess to the brand and products; a (2) consistent pipeline of new, compelling products that are better than what the competition is offering; and, (3) a purpose-driven system that reliably and affordably produces both.

Obvious, no?

Although the above paragraph seems logically reasonable to any business leader, there is a slight nuance to it that is often overlooked.

The nuance is - according to some research conducted by PWC over a 15 year time horizon - that this formula only works if these things are the only things a business focusses on.

PWC have kindly packaged this idea into 6 simple steps to outperformance

Companies that outperform:

1. Closely align innovation strategy with business strategy.
2. Create company-wide cultural support for innovation.
3. Top leadership is highly involved with the innovation program.
4. They base innovation on direct insights from end-users (and futures research).
5. They rigorously control project selection early in the innovation process.
6. They excel at each of these first five characteristics and have been able to integrate them to create unique customer experiences that can transform their market.

The problem with lists like this is that they welcome the temptation for box-ticking. But all of these factors need to be true, in equal measure, for a good growth strategy to deliver.

Marketing, innovation, brand building and a constant, structured program of R&D are the corner stones, not nice-to-haves whenever management deems there to be enough surplus to afford them.

Without a good growth strategy any business puts itself under serious and unnecessary duress. So a good growth strategy must lead, it's the north star that drives everything.

More:

What the top innovators get right

With careful attention to six key areas, companies can make the most of their R&D investment and outpace the competition.

Strategy+businessBarry Jaruzelski, Robert Chwalik, and Brad Goehle