What separates high growth companies from the rest?
What are the 10 key elements that separate high growth companies from everyone else? There are a lot of different opinions about what makes high growth companies really successful. So I was delighted to tap into the Deloitte survey that provides a rigorous assessment of the key success factors for high growth companies.
The researchers surveyed senior executives and CEOs from high technology and manufacturing companies with less than $50 million in revenue. Responses mostly came from the US and Britain, with smaller samples from Canada, Australia and New Zealand.
The purpose of the survey was to determine what separates high growth companies from the rest.
Factor 1 Measurable action
Successful companies constantly transformed their growth strategies into actions that can be measured. This means that every strategy ends up on an action list with timelines, measures (use financial measures wherever possible) and one person nominated as responsible for the action.
Factor 2 Ability to execute
It’s one thing to have strategies transformed into action but it’s quite another to successfully execute. I’ve worked with hundreds of companies and it is very difficult to focus on your strategic actions. Everyday operational issues get in the way.
But successful companies don’t let this happen. That’s a very interesting finding of this survey.
Factor 3 Talent attraction
This is an increasing problem for most companies. CEOs of high growth companies spend a lot of time making sure that their recruitment and retention strategies are working.
Your human resources strategies are absolutely critical. There will be a range of solutions, but retaining your good staff is essential and a vital part of your strategy.
Factor 4 Sales and marketing strategy
I was so pleased to see the word “sales” in this factor. Too often companies develop very detailed and effective marketing strategies but forget about developing a sales process to execute on the marketing plan.
After all, the only reason for marketing is to bring in revenue. It is through sales that you get your bills paid. Get a good balance between your marketing strategy and your sales process and you’ll be on the way.
Factor 5 Commitment
This means commitment to the vision and strategic plan by all the staff. This is best achieved by getting staff involved in developing your longer term objectives and how to achieve those objectives.
And you’ll need to talk about these issues often throughout the year. It’s not an event but a process of building commitment through involvement and contribution.
Factor 6 Expanded offerings
Companies often start with a relatively simple product offering. As the business grows the demand for “variations on a theme” increases and new niches are identified.
The successful high growth companies deliberately develop strategies to accelerate these opportunities. They work very hard to maximise these opportunities.
Factor 7 Broad initiatives
Initiatives to reach objectives cover a broader range. What this really means is “don’t put all your eggs in one basket”. As we know, not all our plans play out the way we’d like. So plan for a range of initiatives, prioritise your initiatives and go test them.
The market will soon tell you what they want. You don’t need to spend endless days and weeks trying to second guess the market. But please don’t misunderstand; you will need to do market research so that you have an understanding of your market.
Factor 8 Talent retention
OK you’ve got great staff, but will you keep them? How many times have you heard of the really good staff being poached by your competitors.
High growth companies have got this one sorted. They spend a lot of time making sure that staff are happy. They understand what they really want. And it’s not always the extra dollars in the pay packet.
Factor 9 Growth plan
I don’t need to say much about this. I’m a great believer in developing your growth plans. It is essential to have your plan in place if you want to grow successfully.
Factor 10 Innovative culture
No surprises here. We hear about innovation all the time. However, many companies think about innovation just in terms of product/service innovation.
Think about how you can be innovative in marketing, selling, human resource management.
Here is an example…
I am reading The World is Flat (Thomas Friedman) and it has some fascinating stories about the revolution caused by internet capability.
An executive needed a presentation prepared for a speech. He sent the brief to Brickworks India when he left the office. When he got in the next morning the PowerPoint presentation was delivered. An MBA graduate had researched the topic, prepared the tables and graphs and finalised the presentation, including notes, while the executive slept.
How good is that!
Here is an interesting finding….
Only 45% of declining companies thought that execution was important.
And that’s the end of another year. Have a great Christmas and enjoy your new year celebrations.
Till next year…
Gail Geronimos, is the founder of Achaeus, which helps entrepreneurs develop their businesses and she has just started a new site www.pitchingtoinvestors.com with tools and tips about how to develop killer presentations to raise capital.
To read more Gail Geronimos blogs, click here.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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