The Hierarchy of Business Growth Needs
The traditional business hierarchy of business growth needs is actually a barrier to business growth, because it allocates too much time to regulatory compliance and operational efficiency, both of which are low-value categories. Instead of allocating resources to these two categories, businesses should be focusing on revenue growth, business model transformation, and brand. In other words, businesses should flip the traditional hierarchy of needs to jumpstart growth.
Today, there is a lot of press about how the U.S economy is growing. That is certainly the case for tech businesses that just a few years ago were startups. Can you say the same for your business? If this is what businesses needs to grow, then the question is, “How do I leverage the flipped hierarchy to actually deliver growth?”
Read more about the flipped hierarchy of business growth needs: To Jumpstart Growth, Flip the Company’s Priorities
Sources of Growth
There are two paths to growth, both of which are built on a foundation of strong leadership and data. The path starts with leadership, the effectiveness of which is based on data. A leadership mindset is necessary to set the agenda and pace. The organizational skillset is used to create common frameworks for growth. And the operational toolset is used to make fact-based decisions and actions.
Profitability through improved market engagement or operational efficiency
- New value propositions – add services
- Premium pricing
- Adjacent market penetration
- Process optimization
So, when we break it down, the two sources of growth are greater profitability and something new. Of course, neither path can happen without sound leadership.
Improvements in market engagement deliver profitability or innovation.
When the market is new and the products are new, you end up with radical new ventures and/or new technologies. Read more about market-driven innovation and how it can help your business improve its market engagement. Or download our white paper, “Leading Market-Driven Innovation for Growth.”
Market-driven innovation is designing, managing, and implementing your innovation process around the needs and wants captured from your key markets. It begins with a business oriented toward target markets. These markets define strategy, which in turn informs resource allocations—especially those resources dedicated to the innovation process.