Generating growth is complex. Yet, pretty much every living organism is looking for growth. Of course, growth can be defined differently in different circumstances, but every creature tries to gain something, be more than before, over time. For a company, growth is the best indicator of how vital it is. And money is just one measure of growth - and as a lagging indicator not even a very good one.
Why should a company grow?
There are many reasons for a company to try to generate growth. A flywheel is a good metaphor for a business. Each action that anyone in the organization does, either speeds up or slows down the flywheel. Positive growth is a sign that the flywheel is speeding up and negative growth is a sign of the opposite. The negative trend in any of the selected measures means that someone or something is slowing the flywheel down. And over time that will be a problem. Growth is the best sign that the company is ok. It’s like a natural law - if the being is healthy, it grows healthy.
All the great products and services, are the results of some company’s speeding flywheel.
Growth opens new possibilities. More sales and profits may bring a company competitive advantages over its rivals. That can help to expand into new markets or to come up with new and innovative products or services. When you think about it, all the great products and services that you love, are the results of some company’s speeding flywheel. Very seldom the greatest product were the ones that a company started to build. Growth enables innovation.
Growth takes you to the bigger leagues. Just like in sports, you get multiple benefits from it. Your company attracts a bigger audience, more customers, more investors, and better talents. Each of these, again, makes your flywheel spin faster.
How to stimulate growth?
There are many ways to speed up your flywheel. Start by identifying your target audience. You need to know who your potential customers are, what they need, and how you can solve their problems. But just as important as it is to know your audience, it is to learn to know your team. What motivates them, what kind of skills do they have, and do they know they’re capable of their work? Is your company culture open for growth? Where are the bottlenecks that slow the flywheel down?
It is important to invest in marketing and advertising, but it is just as important to invest in the skills of your team
It is important to study how your product or service stands out from the competition, but just as important it is to study if the right people are doing the right things in your organization. It is important to invest in marketing and advertising, but it is just as important to invest in the skills of your team. Yes, you should improve your customer experience, but just as much you should improve your employee experience.
For your flywheel to get off the ground and start to fly, you need to learn to understand two groups of people. The customers who support your growth financially, and the employees who support your growth physically.
The key is to measure, monitor, and lead the process to the future. That’s why you need leading indicators to guide your decision-making. Remember that growth takes time, effort, and commitment.
What if a company doesn't grow?
Every company is on a rollercoaster ride. There are ups and downs, and a lot of corners that you can’t see what’s behind them. But if a company doesn't grow, over time it will face challenges and consequences.
If a company doesn’t grow, the revenue and profits will start to drop. This will eventually have an effect on investments in the products or services, expanding into new markets, and getting new people on board. At the same time competitors, who are growing, have the resources to invest in all of these things. The best people go where they see the greatest possibilities. And the same goes for the investors too.
Just like it is in nature, growth is crucial for the well-being of soil, a plant, or an animal, it is crucial for the long-term success of a company.
As a data-driven leadership tool, Priorit.io is designed to help leaders to generate growth in their organizations. To get a holistic view of the things that matter the most: capability, efficiency, culture, and leadership. Priorit.io is based on years of research, hundreds of business cases, and the use of modern AI. It is proven that it just works. If your company isn’t growing, and you don’t know why get Priorit.io.
You can get it free.