For decades, “maximize shareholder wealth” has been the mantra recited in boardrooms. This is changing: Jack Welch even called it “the dumbest idea in the world.” It’s a lovely result, but a lousy goal. Your employees need goals that are actionable and inspiring. Chasing quarterly earnings fails this test. Instead, focus employees on creating superior customer value through new products. This leads to profitable, sustainable organic growth… which reliably leads to increasing shareholder wealth.
More in video, Leader’s Guide to B2B Organic Growth series, Video Lesson #5
Portfolio management links strategy with execution for new product development. A Voice of the Customer program maximizes ROI for all new product initiatives, whether incremental or breakthrough. ... Read More
I believe it should be this: Leave your business stronger than you found it. It doesn’t matter how good those soon-forgotten quarterly financial results were. If the leader weakened the business by degrading its ability to grow—through either neglect or raiding capabilities for short term gain—that leader failed. I’m puzzled that boards of directors and executive teams allow business leaders to perform well in the short term while damaging the long-term health of their business. Very odd.
More in article, B2B Organic Growth: Moving to earned growth.
540 B2B professionals—with over 10,000 years of combined experience—responded to our research survey. Here’s what we learned: They were much more eager to improve growth drivers for understanding customer needs (e.g. customer interviews) than meeting customer needs (e.g. gate-review processes). Of 24 growth drivers, what were they most eager to improve? Market insight.
More in article, What Drives B2B Organic Growth? Now we know.
We see three areas where leaders can have a greater negative impact on innovation than positive: 1) organizational friction (travel bans, spending freezes, hiring delays, excessive re-orgs, etc.) that slow innovation to a crawl, 2) spreading too few resources over too many projects so that nothing moves briskly, and 3) short-changing the front-end of innovation, so that a clear picture of customer needs is lacking. Companies pay a heavy price for keeping such leaders in place.
More in article, Accelerate New Product Innovation
Let’s say you’ve led a business for three years. If this year’s financial performance looks great, it’s likely this is mainly because a) the last business leader put strong growth capabilities in place, or b) you’ve cut costs and taken other short-term measures that will ultimately degrade this business. It takes a long time to build a growth juggernaut, and very little time to “raid” it for short-term gain. Companies should recognize this and reward the “builders” among us.
More in e-book, Leader’s Guide to B2B Organic Growth (Lesson 7)
Here’s the scene: You are a B2B business leader unhappy with your membership in the Shareholder Appeasement Club and its quarterly meetings. You want profitable, reliable growth so you are free to captain your ship, not some Wall Street analysts. But what should you do—not in the abstract—but in concrete, actionable steps? Before exploring admission ... Read More
Do you admire business leaders like Henry Ford, Steve Jobs or Jeff Bezos? Why… because they were great at financial reviews or quarterly investor calls? Great leaders march to a different beat, and so must you. Consider these practical leadership tips to build your own legacy as a great business leader.
Benchmark your growth capabilities, and chart a multi-year improvement plan with our free B2B Growth Diagnostic.
The Oxford Dictionary defines a factoid as an item of unreliable information that is repeated so often it becomes accepted as fact. Too often in product development, what we view as a fact is just a factoid. Its fine to have assumptions, but make sure they don’t dress up as facts. What you think you know is more dangerous than what you know you think.
View video, De-risking Transformational Projects
The vitality index—percent of sales from new products—is a metric you should keep using. But it’s not predictive, prescriptive or precise. Consider 2 leading-indicator metrics from The AIM Institute: The Commercial Confidence Index (CCI), and the Growth Driver Index (GDI)… both quite easy to run.
Use this free diagnostic to find out your CCI and GDI, and benchmark your growth capabilities.