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
What should be done if highway traffic slows to a crawl? Probably not put more cars on the entrance ramp, right? With every month of delay, a typical B2B new product loses $80K in net present value. So reduce your number of active projects and accelerate those that remain. The best way to kill dead-end projects—or stop them from even starting? Better up-front work. Then your R&D only works on customer outcomes you know they want, not hope they want.
More in white paper, Guessing at Customer Needs
If your NPD teams are confident of customer needs, your projects will go faster for 3 reasons: 1) Bad ideas are killed quickly, freeing up resources. 2) Dead-end detours and diversions are avoided. 3) Hesitation—with second-guessing, delays and debates—is squelched. As Netscape founder, Jim Barksdale, said “If we have data, let’s use it. If we have opinions, let’s use mine.” B2B innovators can find the data they need in Market Satisfaction Gaps.
More in white paper, Market Satisfaction Gaps
It may seem counterintuitive, but many business leaders focus too much on business results. Wise leaders balance the pursuit of results with capabilities. Can you name any endeavor—rock-climbing, martial arts, chess—where champions didn’t first build their capabilities? Their victories (results) came later. When you see a leader fixated on quarterly results, picture an amateur climber at the base of El Capitan. He has the wrong shoes, no climbing skills and flabby abs… in other words, no capabilities. But boy oh boy, is he ever eager to climb. Yes, he wants results.
More in video, Leader’s Guide to B2B Organic Growth series, Video Lesson #9
We asked this question of 540 B2B professionals—with over 10,000 years of combined experience. Of 24 possible growth drivers, what were they most eager to improve? Market insight. We defined this as “Obtain market insight proactively to drive strategic decisions (vs. being just customer-reactive).” Just as quality and productivity each had their waves of popularity, so market insight is increasingly sought today. Here’s a short video on one way to succeed: Focusing the fuzzy front-end of B2B product development.
More in research report, What Drives B2B Organic Growth?
I hear this all the time: “We just finished trimming our costs, and now it’s time to grow.” Another variation: “Our last CEO focused on operational efficiency, but our new CEO wants growth.” This is nuts. If you run a business, B2B organic growth isn’t an initiative. It’s your job. All the time. Profitable, sustainable organic growth is the only way to ensure your company’s value keeps rising and your employees can count on stable employment. Who wins a race by wandering on and off the track?
More in article, B2B Organic Growth: Moving to earned growth
Our survey of 540 B2B professionals—with over 10,000 years of combined experience—investigated 24 possible growth drivers. The highest rated driver of growth was delivering strong, differentiated value propositions. Doing so requires both 1) understanding and 2) meeting customer needs. Respondents felt a much greater desire to improve the former (understanding) than the latter (meeting.) Of 24 growth drivers, what were they most eager to improve? Market insight.
More in research report, What Drives B2B Organic Growth?
