{"id":1202,"date":"2016-09-30T10:24:03","date_gmt":"2016-09-30T10:24:03","guid":{"rendered":"http:\/\/www.ceo-worldwide.com\/blog\/?p=1202"},"modified":"2025-03-04T05:48:50","modified_gmt":"2025-03-04T05:48:50","slug":"drive-sustainable-long-term-growth","status":"publish","type":"post","link":"https:\/\/www.ceo-worldwide.com\/blog\/drive-sustainable-long-term-growth\/","title":{"rendered":"How to Drive Sustainable and Long-Term Growth?"},"content":{"rendered":"
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Many of today\u2019s business leaders, when planning for growth, admit to lacking a clear view of how to achieve their aspirations, and they say they are distracted by a wealth of potential opportunities. <\/p>\n\n\n\n

According to a recent strategy survey of over 500 executives worldwide, nearly three-quarters (74%) agree that there are more options for growth today than there were 10 years ago. Yet 66% say that knowing which one to pursue is harder than ever. Further, only 22% of executives say they think their leaders are \u201cexcellent\u201d at driving growth. There are opportunities globally if you take on board these tips I share with you today to deliver more success.<\/p>\n\n\n\n

Here\u2019s the solution: The most successful leaders and companies figure out how to build a \u201cgrowth engine\u201d – a handful of capabilities that provide real differentiation in the market. They devote a great deal of energy to exploring the company\u2019s core identity and what they do better than their competitors. Consistent growth then comes from leveraging those differentiated advantages again and again.<\/p>\n\n\n\n

\u201cThe route to growth is more important than the growth target itself.\u201d<\/p>\n\n\n\n

Great companies learn to resist the temptation to \u201csearch\u201d high and low for growth. They know that even if a seemingly good opportunity arises, they may not have the capabilities to beat competitors at it in the long run. In short, they know that \u201cone hit wonders\u201d in new products and services can only take them so far. So these very useful tips will help you on your journey for `Driving Sustainable, Long-Term Growth for Your Success`.<\/p>\n\n\n\n

Leaders who succeed in creating growth engines have generally internalized 10 key points.<\/p>\n\n\n\n

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1. The route to long-term growth is more important than the growth target itself.<\/h2>\n\n\n\n

Targets can be very helpful, of course, but, in our experience, CEOs too often encourage their people to commit to a number\u2014say, annual revenue growth of 7%\u2014even though the path to achieving it isn\u2019t clear. This kind of target-number focus can lead companies off course into uncharted territory, chasing growth in too many directions. <\/p>\n\n\n\n

That, in turn, tends to deplete resources and siphon attention away from the opportunities that matter the most. For example, instead of expanding beyond its means, Natura has achieved success in Latin America by staying true to its relationship-focused business model and focusing on launching new products that promote well-being, relationships and connection to nature. In a similar vein, the real estate<\/a> sector is increasingly adopting a customer-centric approach, emphasizing the importance of building strong relationships and trust with clients.<\/p>\n\n\n\n

So, look very closely at your business offering that builds relationships with your customers for long-term growth and profitability by measuring each product\/service on offer that produces you the appropriate net profit return with the least customer hassle.<\/p>\n\n\n\n

2. Leveraging a unique set of differentiating capabilities is more valuable than simply trying to respond to the market. <\/h2>\n\n\n\n

Often companies try to grow by looking outside for attractive markets and trends. Instead, the most sustainable growth comes from looking within to find a growth driver that indisputably belongs to that company. <\/p>\n\n\n\n

Example one is a good example: by combining price-conscious and stylish product design, highly efficient operations and customer-focused retail design, they were able to become a true \u201csuper competitor\u201d in the home furnishings market. <\/p>\n\n\n\n

This is a combination of solutions that fit you and the customer’s needs to bring the best results for the customer and your net profit requirements.<\/p>\n\n\n\n

3. You can create a growth engine by exploiting opportunities in your core market. <\/h2>\n\n\n\n

There is often more \u201cheadroom\u201d for growth in core markets than companies think. By identifying unmet needs in new ways, companies can find growth at home, as well as in nearby market opportunities, or \u201cadjacencies,\u201d that take advantage of existing capabilities. <\/p>\n\n\n\n

Such a strategy can help companies avoid chasing attractive illusions and create a sustainable growth engine by steadily expanding their core. A great example is Wal-Mart, which was struggling to continue its growth rate in the early 2000s, and chose to refocus on the core by re-thinking its core value proposition: ensuring everyday low prices for shoppers. <\/p>\n\n\n\n

The retailer re-invested to lower its costs relative to competitors, and in communicating its pricing better to consumers (including some innovation in helping consumers compare baskets from other retailers). Therefore, look very closely at your offering to customers. Offer solutions of products\/services that your customers need to improve their businesses and this then will improve your business with the right net profit return plus increase growth and retention of customers by building relationships that keep away the competition.<\/p>\n\n\n

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4. Strategic Thinking<\/h2>\n\n\n\n

To achieve real long-term growth, a company needs a group of managers at its top. There may be one dominant director, but companies of any reasonable size cannot b run by one person. The team needs to act as one, with common aims and purposes.<\/p>\n\n\n\n

The old idea of strategy, as an ivory tower exercise handed down for the managers to implement, just does not work. Directors and managers have to be their own strategists; the practitioners have to be the planners. Therefore, they need a system that they can use and follow, that will be comprehensive and exhaustive, yet understandable. They need a model, which simplifies the situation, but does not ignore the complexities.<\/p>\n\n\n\n

SBP is to do with the mind, both the individual minds and the collective mind of the team. One successful Managing Director described how he has a mental model of how his company operates which he calls the `vehicle`. All the key activities, decisions and outcomes of the business are included in this model. The three items that stand out about the `vehicle` are:<\/p>\n\n\n\n