As an executive coach and performance improvement consultant, I love helping my clients think about robust strategies. Strong strategies are essential because simply working hard is not enough. Hoping for economic improvement or relying on sheer effort is not a robust strategy, even though these factors may contribute. So, what does a robust strategy look like? How do we aim for and achieve a 25% growth target, rather than settling for incremental improvements?
Why Strategy Matters
Often, I see businesses set ambitious budgets for 25% growth, but when their strategies are evaluated, they resemble plans for 10% improvement. For instance, strategies focused on working harder, implementing a better CRM system, or improving frontline accountability are good, but these typically drive only modest gains. To achieve 25% growth, you need a big swing strategy—one that goes beyond minor adjustments and tackles fundamental changes.
Defining a Robust Strategy
A strategy is simply a plan of action or policy designed to achieve a major goal. To evaluate whether your strategy is robust enough to achieve 25% growth, consider these four key areas:
- People:
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- Do you have the right people in the right roles? Sometimes, this means making tough decisions, like upgrading a B-player marketing manager to an A-player. While hiring top talent can be costly, it often brings exponential returns, driving significant growth.
- Vision, Mission, Values and Strategy
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- Have you developed an inspiring vision and values? Several research studies have shown outstanding results when a company and it’s employees are aligned and focused on a compelling vision of how your company benefits your ideal clients.
- What is your big swing strategies for Pricing, products, promotion and distribution. Ensure that you have compelling strategies in each one of these areas.
- Execution Practices:
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- Strong execution practices are critical. For example, implementing a robust KPI system, setting clear accountabilities, and conducting regular one-on-one meetings with key players can improve performance significantly. Execution bridges the gap between strategy and results.
Where should you start?
- SWOT Analysis:
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- Conduct an honest SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Engage senior players or external experts to help with this process. It’s often difficult to be objective about your own business. Use the insights from your SWOT analysis to build targeted strategies that align with your budget and growth goals.
Case Studies: Developing “big swing” strategies
Case Study 1: Retail Business
SWOT Analysis:
- Strengths: Strong senior team and customer-loved products.
- Weaknesses: Undercapitalized, lack of long-term planning, and weak marketing/sales strategy.
Big Swing Strategies:
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- Hire “A player” sales and marketing professionals.
- Adopt a more targeted sales and marketing approach focused on ideal clients.
- Raise additional capital and form an advisory board to guide long-term strategy.
These strategies help the business overcome resource constraints and build capacity for sustainable growth.
Case Study 2: Tech-Driven Company
SWOT Analysis:
- Strengths: Strong product and technical team with solid accountability systems.
- Weaknesses: Overworked workforce, resource constraints, and poor financial/pricing margin understanding.
Big Swing Strategies:
- Hire a strong CPA to improve financial controls, margin analysis, and cost optimization.
- Invest in leadership development to enhance people management.
- Implement automation solutions to reduce workload and improve efficiency.
These actions address both operational and strategic gaps, creating a foundation for substantial growth.
Case Study 3: Regional Business Expansion
SWOT Analysis:
- Strengths: Strong leadership and financial position.
- Weaknesses: Regional performance inconsistencies and underutilized pricing potential.
Big Swing Strategies:
- Adjust pricing strategies to capture untapped revenue potential.
- Upgrade regional leadership teams to drive consistent performance.
- Enhance customer experience across all regions with standardized incentives and measures.
By addressing pricing and leadership gaps, the company can unlock significant growth potential while improving profitability.
Final Thoughts
Achieving 25% growth requires more than hope and incremental improvements. It demands an honest assessment, bold decisions, and strategic investments. Start with a thorough SWOT analysis, and then develop robust strategies in key areas such as pricing, promotion, people, product, and distribution. Be prepared to make tough choices and invest where it matters most.
If you’re not ready to take these steps, it may be more realistic to aim for a modest 5-10% growth target. However, if you aspire to 25% growth, align your budget with a big swing strategy that matches the ambition. With the right strategies, execution, and mindset, significant growth is within reach.