When It’s Time to Examine Your Growth Strategy
Company leaders should constantly challenge their organizations’ growth strategies. But it is sometimes difficult to step back from the hectic day-to-day running of a business to recognize internal and external issues that cause sales and earnings to slump. Being sensitized to some well-defined warning signals can help address issues and problems early. Here are eight areas to consider.
1. Customers and competitors evolve and change. Stay tuned to trends in your industry and adapt as necessary.
2. Watch for margin erosion. Identify initiatives to improve cost structure well before margin erosion gets out of hand.
3. If sales are no longer responding to past techniques, have the courage to initiate change and take bold action. Every company needs to reinvent itself periodically.
4. Over time products and services can become outdated. Challenge and energize your managers to be innovators.
5. Recognize when the skills of your own people have plateaued. The right people can make the difference between success and mediocrity.
6. Don’t lose focus. As companies grow, opportunities abound, but resources are not limitless. Avoid diluting resources unnecessarily.
7. Don’t accept complacency. Constantly challenge the status quo. Encourage a constant flow of creativity and maintain a high level of energy and enthusiasm.
8. Strategy is not static or rigid – it is dynamic! Review and update your growth strategy regularly.