How do you grow your company organically in today’s competitive marketplace?
A McKinsey survey looked at approaches used by companies and found that high-performing firms used a combination of three strategies:
- They moved investment and money into high-growth activities.
- They created new things to sell and new ways of delivering value.
- Tney worked on making how they did things internally better.
It appears from the survey that the best performing approach is one where firms focus on creating new products, services and business models, but also ensure that they allocate resources effectively and work on optimizing their own operations.
That sounds easy enough, so what stops organizations from doing this and setting off on a growth track?
There are three reasons, according to another article from McKinsey:
1. Inflexible structures
Your organization needs to have the right structure to enable growth, with the right teams, leadership and strategy in place to effectively serve its target market.
Simply working within an existing structure can mean that ideas and innovation can get lost in the unending stream of existing priorities and concerns.
2. Unscalable processes
A related problem is when existing processes just cannot keep up with new opportunites and demand.
If you have a bottleneck in your organization – perhaps when it comes to pricing, turning proposals around, evaluating opportunities or in your manufacturing systems, that will become an increasingly large problem as you grow.
3. Unprepared people
A growth strategy can come as something of a surprise to people in organizations used to doing things in a certain way.
This can slow growth down considerably – not because people are being difficult, but just because by being cautious and adding what they feel are reasonable checks to the process, they can end up slowing and even derailing the entire initiative.
So, what does this mean for us?
An organic growth strategy takes time, focus and investment.
Like growing plants, you need to prepare the ground, seed it, provide them with resources and keep away predators.
And then you need to wait.