Sustainable Growth:

Business Innovation

Business Growth Strategies

Select the Right Focus

 

Vadim Kotelnikov personal logo Vadim Kotelnikov, Founder, Business e-Coach

 

 

To decide which business innovation concept is appropriate to a company, the first thing to do is to ask whether the company is generally doing the right things (effectiveness), but just needs to do them better (efficiency), or whether it needs to do new things.

2 Basic Business Growth Strategies

It is important to consider whether both fast results and the scale of change are needed. It should first be asked whether the company is faced with an evolutionary or radical change in its industrial sector2.

How To Overcome Resistance to Change: 10 Tips

It does not make much sense to pursue costly new opportunities if a company is neither effective nor efficient. Cost-cutting and restructuring measures should come first as a starting point of long-term fundamental transformation – “creative destruction” – that involves downsizing and simplifying, followed by regeneration of the organization and strategy.

Creative Dissatisfaction

If a company is effective, but not efficient, the management focus should be on implementation of continuous efficiency improvement measures and, ultimately, establishment of an enterprise-wide business process management (EBPM) system.

Kaizen Mindset

A continuous effort to improve organizational climate as well as the productivity of the core business in response to continuous changes in the marketplace should be emphasized in the company’s growth strategy.

If a company achieved high operational efficiency but lacks effectiveness, it should work more on – not in – its business and strategic planning.

Unless managers regularly schedule time (one-day out-of-the-office meeting a month at least) to work on their business and answer critical questions about their strategic alignment and corporate internal resources and capabilities, they'll never achieve their stretch goals.

The opportunity-driven business development approach aims at increasing the effectiveness of a company through the pursuit of new business. The opportunity approach is an alternative to the traditional process of renewing business strategy. This approach is also valid even for very successful companies that are already both very efficient and very effective.

Even with a healthy business, external change is a constant factor. Besides, it is often easier to obtain resource support for new opportunities when a company is doing well2.

Business Architect

 

 

 

References:

  1. Lateral Thinking Skills, Paul Sloane

  2. "Changing Strategic Direction", Peter Skat-Rørdam