Growth Strategies need Effective Execution
by Rudi Scheiber-Kurtz, CEO of Next Stage Solutions, Inc. (NSS)
Most companies have been experiencing flat growth over the past few years. Developing a dynamic strategy for your business is now more important than ever given the current uncertain market conditions. Equally important is that you execute your strategy with the highest level of effectiveness and champion change throughout the organization.
Implementing your strategy with optimal precision will have dramatic affects on your top and bottom line. But how will you know if the strategy is working and how will you measure your results? You want to create a set of relevant and actionable metrics for your management team and department heads to closely monitor the organization’s progress.
The following 5 steps will give you a competitive edge and enable you to seek market opportunities otherwise unattainable.
1) Know the contribution margins of each segment of your business.
Fully understand the contribution margins of each product and services line before finalizing your sustainability and growth strategy. This lets you focus on the segments that are most profitable and lets you promote change the lines that are draining your resources.
2) Have the appropriate business processes and infrastructure in place to scale the business.
Companies have reduced costs to bare bones, yet for continuous growth and stability you must have a right-sized infrastructure and critical processes in place that must be adhered to. Consider the 80/20 Rule, striving for only 20% customization for any business segment.
3) Maintain real-time information flow for optimal decision making.
Making decisions on 30-day old financial information and operational results is no longer adequate. Determine the value drivers for your business, rather than the traditional accounting exercise of budget versus actuals. They tell you only a piece of the puzzle.
4) Identify and monitor your Key Performance Indicators (KPIs)
Key performance metrics are necessary to measure performance and success. The KPIs you choose will keep you focused and on track and most importantly, will allow you to make quick changes if necessary.
5) Balance your Executive Team between vision and execution
Your strategy is only as good as your implementation process. Your executive team must have a clear plan with the appropriate Sales/Operations/Organizations/Finance resources to execute the vision and strategy of your growth plan. A milestone management plan with specific metrics for each of the four areas of your business must be created and put in place. Monitoring the progress closely is vital so that necessary changes can be made quickly and without losing momentum and market share.
Stick to the above 5 criteria to make sure your strategy is implemented effectively and adhered to stringently. Evaluate the strength and weaknesses of your executive team and source the additional support with the appropriate senior level expertise to have a balanced team that is action and value driven.
Next Stage Solutions works with mid sized and small companies providing the financial acumen and business insight necessary to compete in the global marketplace. NSS understands the necessary change needed throughout the organization to achieve top and bottom line growth.
617. 449. 7728 www.nextstagesolutions.com firstname.lastname@example.org