{"id":27901,"date":"2022-10-31T17:03:10","date_gmt":"2022-10-31T22:03:10","guid":{"rendered":"https:\/\/salesv4.aligntoday.com\/blog\/improving-organizational-performance-with-strategic-growth-management\/"},"modified":"2023-09-08T07:12:14","modified_gmt":"2023-09-08T12:12:14","slug":"improving-organizational-performance-with-strategic-growth-management","status":"publish","type":"post","link":"https:\/\/aligntoday.com\/blog\/improving-organizational-performance-with-strategic-growth-management\/","title":{"rendered":"Improving Organizational Performance with Strategic Growth Management"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1224px;margin-left: calc(-2% \/ 2 );margin-right: calc(-2% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:0.98%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:0.98%;--awb-width-medium:100%;--awb-spacing-right-medium:0.98%;--awb-spacing-left-medium:0.98%;--awb-width-small:100%;--awb-spacing-right-small:0.98%;--awb-spacing-left-small:0.98%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p>Turning a startup into a million-dollar company isn\u2019t an easy task.<\/p>\n<p>Research shows that only 1% of companies reach $250 in annual sales. Worst even, only a microscopic group\u20140.036% to be precise\u2014will reach <a href=\"https:\/\/www.mckinsey.com\/~\/media\/McKinsey\/Industries\/Technology%20Media%20and%20Telecommunications\/High%20Tech\/Our%20Insights\/Grow%20fast%20or%20die%20slow\/Grow%20fast%20or%20die%20slow.pdf\" target=\"_blank\" rel=\"noopener\">$1 billion in annual revenue<\/a>.<\/p>\n<p>In other words, most businesses start small and remain there.<\/p>\n<p>But that doesn\u2019t mean you can\u2019t ace it. There are many companies that started small and have transitioned to multi-million-dollar conglomerates. Meaning you don\u2019t need a billion-dollar balance sheet to expand and achieve a significant market share globally.<\/p>\n<p>What you need is an unstoppable strategic growth plan. Of course, with growth comes risks.<\/p>\n<p>Companies on a growth trajectory face many challenges that suppress their growth. Without a well-defined growth plan, your business may never reach the maturity stage. Instead, it may end up joining the growing number of companies that <a href=\"https:\/\/www.entrepreneur.com\/starting-a-business\/the-true-failure-rate-of-small-businesses\/361350\" target=\"_blank\" rel=\"noopener\">fail within the first five years<\/a>.<\/p>\n<p>But how do you build a strategic growth plan for your business?<\/p>\n<p>In this guide, we\u2019ll discuss the steps to developing a strategic growth plan for your business. We\u2019ll also touch on the many challenges leaders face trying to grow and how you can avoid them. But, first, a quick primer on strategic growth.<\/p>\n<p><strong>What Is Strategic Growth?<\/strong><\/p>\n<p>Growth for the sake of growth or making a profit isn\u2019t sustainable.<\/p>\n<p>You\u2019ve probably heard horror stories of companies that started big, flush with venture capital, but got sloppy at some point and began dwindling. Rapid growth can lead to unforeseen circumstances, such as:<\/p>\n<ul>\n<li>Poor hiring decisions and high employee churn<\/li>\n<li>Communication problems<\/li>\n<li>Poor targeting and marketing penetration decisions<\/li>\n<li>Data silos and poorly placed technologies<\/li>\n<li>Lack of analytical decision making<\/li>\n<li>Overhead accumulation<\/li>\n<\/ul>\n<p>Having a strategic growth plan can help avoid all these problems. A strategic growth plan is like a blueprint\u2014a big picture you\u2019ve created to get your business from where it is now to where you want it in the future.<\/p>\n<p>Such growth involves all departments and aims to grow your company from many angles (revenue, employees, etc.).<\/p>\n<p>In other words, strategic growth involves developing initiatives that will help your business grow long-term. That said, any growth strategy intended for the short term, like growing sales by 10% in the next two weeks, is not strategic.<\/p>\n<p>Examples of strategic growth include forging partnerships that will foster future growth or diversification, developing new products to reach a wider audience, etc.<\/p>\n<p><strong>How to Build a Successful Strategic Growth Plan<\/strong><\/p>\n<p>Building a <a href=\"https:\/\/aligntoday.com\/blog\/webinar-recap-making-time-for-strategic-growth\/\">successful growth strategy<\/a> requires careful consideration of the many factors that impact business performance. Here are the steps to follow before you lay down your strategic growth blueprint.<\/p>\n<ol>\n<li><strong> Identify Your Value Proposition<\/strong><\/li>\n<\/ol>\n<p>The first step in formulating your growth strategy is to figure out what makes you different from the competition. Consider why customers come to you and what features of your products make them stick with your brand.<\/p>\n<p>Ask yourself what makes you relevant, unique, and credible. Then use your answers to formulate a growth strategy to factor in your value proposition.<\/p>\n<p>For example, some companies, like LG, boast authority and dominance with their OLED TV lineup. Others, like Walmart, compete on price. Figure out what differentiates you from the competition and capitalize on that in your growth prospects.<\/p>\n<ol start=\"2\">\n<li><strong> Identify Your Target Audience<\/strong><\/li>\n<\/ol>\n<p>While selling to everyone might seem more profitable, things can be very different on the ground. Businesses that identify a target market and niche outperform those that sell to everyone. Your goal is to solve a problem for a specific audience.<\/p>\n<p>Who is that audience?<\/p>\n<p>Once you\u2019ve identified your target audience, it will be easier to understand their pain points and develop products that address their needs. If you don\u2019t understand your audience, you may end up spending marketing and advertising dollars on a market that\u2019s not lucrative.<\/p>\n<ol start=\"3\">\n<li><strong> Understand Your Current Revenue Streams<\/strong><\/li>\n<\/ol>\n<p>What are your revenue streams? Do they generate enough revenue to finance your future growth projects? Are there more revenue streams you can add to make your business sustainable? Answering these questions will help you determine whether you\u2019re ready for the next phase of your business growth.<\/p>\n<ol start=\"4\">\n<li><strong> Conduct a Competitive Market Analysis<\/strong><\/li>\n<\/ol>\n<p>Take a closer look at companies that are in the same business as you and similar businesses that are growing in unique ways.<\/p>\n<p>Find out what they\u2019re doing differently and whether they have a larger market share than you. If they\u2019re performing better than you, brainstorm what you can do to improve on their offerings and achieve a larger market share. Incorporate your ideas into your strategic plan but don\u2019t implement any until you\u2019ve tested them.<\/p>\n<ol start=\"5\">\n<li><strong> Do a Market Research<\/strong><\/li>\n<\/ol>\n<p>Market research will help you determine the feasibility of your future projects.<\/p>\n<p>At this point, you should aim to determine the size of your market and target audience.<\/p>\n<p>Seek to identify gaps in the market and devise ways to penetrate other untapped segments. Your research should also look into businesses you might want to forge partnerships with. These partnerships can be a bigger part of your strategic growth plan.<\/p>\n<ol start=\"6\">\n<li><strong> Set Goals<\/strong><\/li>\n<\/ol>\n<p>Once you have done market research and devised your growth strategies, the next step is to determine how much you plan to grow.<\/p>\n<p>Strategic growth isn\u2019t achieved overnight. You\u2019ll want to set sustainable goals and make sure you have the means and resources to get there. The goals you set should depend on how much you want your business to expand.<\/p>\n<ol start=\"7\">\n<li><strong> Create a Plan<\/strong><\/li>\n<\/ol>\n<p>The next step is to create a detailed plan for your growth strategy.<\/p>\n<p>Your plan should include:<\/p>\n<ul>\n<li>The resources you need to achieve your goals<\/li>\n<li>The team responsible for making the plan successful<\/li>\n<li>The action items your team needs<\/li>\n<li>Growth strategies to be implemented<\/li>\n<li>Products to be developed\/introduced<\/li>\n<li>Target market to reach or expand to<\/li>\n<li>Means for measuring progress and growth<\/li>\n<\/ul>\n<p>It\u2019s advisable to form a committee that will oversee the implementation of your plan.<\/p>\n<ol start=\"8\">\n<li><strong> Consider Hiring More Employees<\/strong><\/li>\n<\/ol>\n<p>The best growth strategy involves onboarding new employees to handle the increased workload. You\u2019ll also want to invest in upscaling your sales team skills and infrastructure. If your CRM isn\u2019t built to scale, consider changing to a platform that\u2019s flexible and scalable.<\/p>\n<ol start=\"9\">\n<li><strong> Determine the Requirements for Growth<\/strong><\/li>\n<\/ol>\n<p>The final step in your growth strategy is to determine whether you have the resources that will make it possible for you to expand and meet your growth goals. Some of the growth resources you need will include:<\/p>\n<ul>\n<li>Finances<\/li>\n<li>Technology<\/li>\n<li>Personnel (skilled and unskilled)<\/li>\n<\/ul>\n<p>If you have everything you need to scale, give it a go. Make sure to set growth milestones and review your progress in each milestone.<\/p>\n<p><strong>What are the Challenges Leaders Face When Trying to Grow?<\/strong><\/p>\n<p>As mentioned, your strategic growth journey will be met with many challenges. Typical challenges leaders face in this journey include:<\/p>\n<ol>\n<li><strong> Managing Change<\/strong><\/li>\n<\/ol>\n<p>Humans are, by nature, resistant to change.<\/p>\n<p>This often happens due to the fear of the unknown. For this reason, leaders often find it difficult to help employees adapt to the new changes.<\/p>\n<p>When a company is planning to expand, it will likely introduce new systems and working models that might threaten employees\u2019 job security. It\u2019s critical to consider your employees\u2019 feelings and assure them that the change will not threaten their job security but rather simplify their workflow.<\/p>\n<ol start=\"2\">\n<li><strong> Demands of a Growing Workforce<\/strong><\/li>\n<\/ol>\n<p>As mentioned, the best growth strategy involves onboarding new employees to handle the increased workload.<\/p>\n<p>The caveat to this is that leaders often encounter challenges meeting the demand of a growing workforce. Bringing in more recruits can help with workload management but also present a number of challenges, such as complex HR administration.<\/p>\n<p>Plus, dealing with people can be complicated. The higher the number of employees, the more challenges you\u2019ll encounter managing them and solving disputes.<\/p>\n<ol start=\"3\">\n<li><strong> Managing Cash Flow<\/strong><\/li>\n<\/ol>\n<p>Cash flow management is critical for the success of your business.<\/p>\n<p>Cash constraints can be detrimental to the success of your growth strategy. When a company expands rapidly, its operations become highly cash-sensitive. Leaders and departmental heads have to make sure the company has enough resources to finance the ongoing projects.<\/p>\n<p>In the event of insufficient funds, the management may need to look for alternative sourcing to finance the ongoing expansion projects.<\/p>\n<p>To ensure proper management of cash flows, every element of working capital should be scrutinized to ensure no cash is going to waste or non-profitable uses. It\u2019s the duty of the leaders to plan ahead to anticipate any financing needs and arrange suitable funding.<\/p>\n<ol start=\"4\">\n<li><strong> Satisfying Existing Markets while Expanding to New Ones<\/strong><\/li>\n<\/ol>\n<p>As much as expanding to new markets is beneficial to a business, satisfying the existing customers should not be neglected.<\/p>\n<p>Leaders often encounter challenges maintaining this balance, particularly if the newer markets have better growth potential. Plus, acquiring new clients is more expensive than marketing to existing customers.<\/p>\n<p>If a business capitalizes its efforts on acquiring new clients at the expense of marketing to the existing customers, it may end up incurring higher costs in the long run, which could have been avoided by satisfying existing clients.<\/p>\n<p><strong>The Bottom Line<\/strong><\/p>\n<p>The success of any business depends on how well it executes its strategic plan. By following the steps discussed above and overcoming the common hurdles leaders face when implementing strategic plans, you\u2019ll be a step close to reaching your growth goals.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":33,"featured_media":25150,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[87,271,432],"tags":[433],"class_list":["post-27901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-success","category-growth","category-strategic-growth","tag-strategic-growth"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3.1 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Boosting Your Organizational Performance: The 3-Step Strategy<\/title>\n<meta name=\"description\" content=\"Organizational Performance is key to increasing your business&#039; growth trajectory and reaching the next level. 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