Five Fundamental Strategic Questions for Leaders
Therefore, the Growth of the Organization is – or will be – a “Top of Mind” activity.
There are five fundamental Strategic Growth questions you can use to measure the success of your growth plan in the current economic environments.
The Five Fundamental Strategic Growth Questions
- How Fast Should Our Growth Be to Meet Our Goals?
Your identify the selected growth rate and then have major dialogues with Sales & Marketing to develop strong Marketing Plans to achieve this Growth Rate. Goals becomes everyone’s focal point in the organization. Also, it is important to understand – something different will need to take place when you are expecting double-digit growth rates. It takes major innovations or extreme actions to make it happen. Working harder is NOT a Successful Strategy.
- In our Existing Markets, What is Our Share of Market?
The answer to this question is extremely important for a simple reason – it will indicate two things… First, if you are dominant player in your market by a wide margin – you will naturally growth with the economic growth rate. Second, if you controlling over 65% of the market you will encounter the “Law of Diminishing Returns” whereby any additional sales are actually hurting your profit margins due to specialty niches that really do not fit your capabilities.
- How Stable is our Growth in our Core Markets?
This is a tougher question for the leader because of the potential answer. How are our Core Markets – do they look at our company as a leader in the market or a necessary evil? Have we surveyed our customer base to find out just how loyal they are to us? Most organizations become stagnant once they dominate a core market by playing it safe rather than innovating like an Entrepreneurial driven company. Therefore, what action steps are ensuring continued innovation and creativity. Then aggressively pursue the newly identified opportunities to dominate your market.
- Based upon Our Product life-cycle, what level of cash flow should we expect to fund additional opportunities?
The Product “S” Curve is alive in every product or service ever developed and sold. Therefore, awareness or knowing exactly where you are on the “S” Curve of your primary products or services is important. The lower on curve, the more growth is available and greater pricing freedom. The higher you are on the curve, the slower the possible growth and tighter profit margins are a given. It is during the major growth on the “S” Curve that more attention is naturally directed to the creation of new opportunities and markets. When companies become too lazy to reinvent themselves, the “S” Curves predict their failure and business decline. Know your Product Life Cycle!
- Are there New Opportunities within our Existing Markets?
New Opportunities are easily identified when the leader and executive teams understand their organization’s Major Business Concept. It is the major driver of the business focus – including products, markets, systems and capabilities. Leaders who maintain the organizational discipline necessary to focus strictly on their Major Business Concept become the dominant player in their market niches. When confusion exists or a “we can do it all” mentality is guiding the organization, then expect mediocre performance and results – not to mention daily crisis and chaos. Focus and Clarity are two of the most valuable traits of a leader. Identify your Major Business Concept and use the associated Strategy and needed Areas of Excellence to Dominate Your Market.
If you have any concerns regarding the above questions and would like to discuss each issue in-depth, please contact me. Also, if you believe these are issues you need an Entrepreneurial Leader to work with you, then let’s set a time to discuss your concerns. You can reach me at 901-757-4434.
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Tags: Business Growth Rates, dominant player in market, fundamental strategic growth, Leadership Skills, Major Business Concept, Product S Curve, strategic growth questions, Strategy, When to Find New Business Opportunities