Blog Category: Organic Growth

Is it time to rethink your company’s time horizon?

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Research published in Harvard Business Review showed companies exhibiting long-term behavior have higher revenue, earnings, job creation, and market capitalization. Clearly, the key to shareholder wealth is long-term behavior, not short-term. If you’re at a financial review discussing revenue, price and margins, you are engaged in a spectator sport. What if your meetings three years ago focused on developing blockbuster products? That was a participant sport, because your longer time horizon allowed you to impact future financial performance. Not just talk about it.

More in video, Leader’s Guide to B2B Organic Growth series, Video Lesson #7

Be a “chess master” business leader: Think 5 moves ahead.

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Do you want to think only about your next move, or think five moves ahead? Here’s a 5th order plan to maximize shareholder wealth: 1st Order: Develop superior customer insight capabilities. 2nd Order: Understand market needs better than competitors. 3rd Order: Develop high-value products focused only on these needs. 4th Order: Sustain superior growth from these products. 5th Order: Impress shareholders with your proven growth track.

More in article, Stop Stifling B2B Organic Growth with 2nd Order Effects

Any business leader can become a builder… if they apply themselves.

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Every business leader becomes known for something. You might be a remodeler, always “fixing the place up.” Improving productivity or quality is helpful, but nothing new is created. Others are decorators, trying to boost “curb appeal” every quarter. Yet others are realtors, focused on M&A, not organic growth. Your company was founded by builders. Be the builder focused on delivering value to customers, so your business grows… and your employees enjoy stable, rewarding careers.

More in video, Leader’s Guide to B2B Organic Growth series, Video Lesson #2

Have you separated your earned growth from your unearned growth?

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There are two types of unearned growth: 1) Inherited Growth comes from great products your employees created long ago, and 2) Market Growth is driven by your customers’ growth. You influence neither today. Earned Growth occurs when you surpass competitors in meeting customer needs. Normal accounting doesn’t separate earned from unearned, but you should. You may be living on borrowed time, when you should be the master of your own destiny.

More in article, B2B Organic Growth: Moving to earned growth

Consider rat tails and the danger of ignoring second-order effects.

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In the early 1900’s the French colonial government tried to decrease the Hanoi rat population by rewarding bounties on each rat tail turned in. The second-order effects were 1) lots of tail-less rats roaming the streets, and 2) rat-breeding farms for tail harvesting. When your business leaders slash R&D spending, invoke travel bans, cut marketing staff, and delay hiring… what second-order effects will come as a result? Perhaps slower future growth? Rats.

More in article, Stop Stifling B2B Organic Growth with 2nd Order Effects

It’s Time for New Innovation Metrics

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You’ve heard, “measure twice, cut once,” right? When it comes to market-facing innovation, most companies only measure after they’ve cut. They use the vitality index—a fine innovation metric developed by 3M in 1988 that’s simple to understand: percentage of gross revenue generated from products launched in the past three (or five) years. But if this ... Read More

Why you shouldn’t hope for great financial results this quarter.

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A large, unexpected revenue upturn this quarter feels good, right? But the satisfaction is fleeting. What you need is growth that is unrelenting, earned and reliable. If your growth is serendipitous—not the result of superior growth capabilities—you’re just setting yourself up for problems in 12 months. That’s when you’ll be held accountable for year-over-year results. Then you’ll be expected to repeat last year’s revenue windfall and then some.

More in article, B2B Organic Growth: Moving to earned growth

Beware 8 first-order actions that can stymie your future growth.

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A good business leader understands that every decision will have second-order effects after the initial “intended consequence.” Slower future growth is the second-order effect that often follows these decisions: 1) severe spending cuts, 2) rapid re-organizations, 3) hiring freezes, 4) travel bans, 5) R&D staffing cuts, 6) marketing staffing cuts, 7) new initiatives that distract, and 8) excessive M&A activities. Some such decisions may be needed… but consider the second-order impact on your growth.

More in article, Stop Stifling B2B Organic Growth with 2nd Order Effects

B2B Growth: Research on how to accelerate it

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No one likes to be average—another word for mediocre—in something as important as growing their business. Of course, half of all businesses are below average in any given year. And few in the above-average ranks for B2B growth are confident they can stay there year after year. This can change for your business. You can ... Read More