By Laurence G. Weinzimmer
Speedy progress is the craze this day. Executives at businesses of each dimension this day are stressed to forge progress possibilities that gain large rewards in brief time spans. With the correct frame of mind and a transparent knowing of the place possibilities lurk, businesses of each dimension can develop into progress champions. Award-winning student and advisor Laurence G. Weinzimmer, Ph.D., combines real-world consulting studies together with his broad study and innovative insights to give the 3 development drivers universal to high-performance businesses: management, marketplace components, and potent procedure. Weinzimmer stocks insights certain to yield gains: specialize in stability. Be a marketplace driving force. examine your consumers. With the best strategy, your corporation will speed up.
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Extra info for Fast Growth, Edition: illustrated edition
Example text
Chuck Knight, former CEO of Emerson Electric, knows the value of growth (versus cost cutting) to drive long-term value. He turned Emer- C H A P T E R 1 / Should I Stay or Should I Grow 25 son Electric from a cost-cutting machine into a growth champion. He notes: “We got so bottom-line oriented that we were inhibiting growth. We were cutting, cutting. ” Economies of scale. Growth is simply an increase in organizational size. The larger a business becomes, the more economies of scale it will realize.
How do growth champions frame their markets using incremental and leap growth? Let’s begin with a brief discussion of the fundamental differences between incremental and leap-growth opportunities. • Incremental-growth opportunities result from minor improvements to something a company already does. Incremental growth often follows the traditional view of strategy by focusing on competition in a well-defined industry. This type of growth is achieved by gaining mar- C H A P T E R 2 / External Framing 43 ket share, focusing on getting a bigger piece of the pie.
Our focus is on clearly connected businesses. We have developed services that our customers wanted, such as selling peripherals in software, integration services, financial services. ”4 How do you know what types of growth opportunities are right for your business? Which ones make the most sense? How can a company balance the risks associated with pursuing new opportunities to sustain growth? Growth opportunities come in two different forms: incremental growth and leap growth. Sustainable growth occurs by achieving a balance between these two types of opportunities.