Managing growth requires sensitivity to change
Managing a company’s growth is a subject that interests both small start-ups and global market leaders. Different types of companies face different challenges, but many factors are similar.
Managing growth always requires the processing of information. There are several relevant points of view: customers, technologies, research and of course the field of competitors which is constantly changing and shifting. The fact that industries are no longer as clearly divided as they used to be brings its own excitement to the area of competitor monitoring.
But just by focusing on outside forces doesn’t necessarily bring growth. It is just as important to recognize one’s own strengths which are the foundation of a company’s future growth. It may be necessary to complement the company’s strong points with the ideas and competences of partners. A new kind of growth can come from the cooperation of a market leader and a small start-up, as long as both are moving in the same direction.
Information services company M-Brain’s recent seminar Intelligence Masterclass – Growth Path Finder focused on the internal and external challenges posed by growth. Here are a few thoughts to those interested in growth management.
3 Tips to Grow Your Company
1. Recognize the essential questions
Board veteran Jorma Eloranta reminded the participants that essential to success is how the company responds to strategic questions. In practice this means that the board asks relevant questions to which the organization responds.
This requires that the company is genuinely open-minded and capable of receiving even surprising information. Fresh possibilities for growth remain unrecognized if decision-making is based on prejudices and attitudes. This way also the current weaknesses of the current business model stay shrouded in shadow.
2. Make sure that the corporate culture promotes growth
Digitalization and new revenue models have offered new possibilities for growth to small and agile companies which have now been able to compete with major companies in a new way. On the other hand, neither does the fact that a company is large and 100 years old prevent it from being successful, if the people’s skills, boldness and analytical skills can be harnessed to motor growth.
In order to be successful in responding to change and creating growth the corporate culture should support different modes of learning in different contexts. Learning Designer Vilma Mutka feels that learning should be promoted throughout the organization utilizing for example common learning networks with clients.
3. Trim and invest
The longer a company operates in the market, the more important trimming and investing become. Non-profitable business should be let go, if it shows no signs of profitability after development efforts. And when major investments are planned, it’s wise to map out potential scenarios to support decision-making and come up with the necessary Plan Bs.
In the ideal scenario a company develops through the decades in a wave-like, constant process of change as illustrated by Digi Punk Rocker Timo Savolainen. A company can get useful kicks in the behind from technological development, for instance.
Do you need new ideas for business growth? Learn more about M-Brain’s Growth Path Finder – a six week project based on heavy data crunching combined with a mix of future-oriented methodologies.