A business must be consistent with its growth trajectory to be called successful. A lot of business leaders prefer growth through mergers and acquisitions. However, to experience real growth, you must cultivate a culture of innovation across the organization. In this article at Harvard Business Review, Mark Bonchek and his co-authors share how changing your company mindset would help in growing your business on its own.
Experiencing Business Growth
Majority of organizations that tried to expand by dint of their own products and services, experienced failures. The reason is simple, wrong operating model. After M&A and in-house launches, companies monitor every step closely and eliminate risks wherever possible. You must change this outlook. Create a culture that enables failure through experimentation rather than success through safe planning. To experience real growth in business, surround yourself with partners, stakeholders, and teams that genuinely share your enthusiasm and vision. Following are the 3 changes you must implement in your company to enable real business growth.
- An Inventer’s Mindset: Everyone looks for competitive advantage by going for Total Addressable Market (TAM), i.e. by working on products that already exist. What you should go for is Total Addressable Problem (TAP), i.e. creating solutions to existing problems.
- The Capitalizing Entrepreneur: When you discover a problem, do not just find solutions. Create a business model to convince stakeholders how you can capitalize on the existing problem. Instead of dismissing viable business options because of preexisting beliefs, find out what the market needs currently.
- The Daring Investor: As banks secure mortgages before a loan sanction, companies want to be sure about ROI before project initiation. However, you must know that all your ventures will not yield expected results. Look forward to the overall gains you get from a venture portfolio rather than from each to experience real growth.
- The Time Keeper’s Diary: Even after building all the above capabilities, you must know that timing is a differentiating factor for business growth. When you have a portfolio approach to new initiatives, you know when to hit the road of M&A. When you monitor the market trend closely, you know when the time is ripe for both venture types.
To view the original article in full, visit the following link: https://hbr.org/2018/05/the-mindset-your-company-needs-to-grow-organically