Does management allow growth?
It’s very simple, if a company wants to grow, they have to have a senior management totally committed to the concept of growth.
While that may seem like an obvious and simple concept, a huge chunk of companies out there have no idea of how to grasp the idea of growth, said Michael Treacy, co-founder of GEN3 Partners and author of the book, “Double-Digit Growth during Tuesday’s keynote address at the MESA Second Annual Plant to Enterprise Conference in Orlando.
“If you want to grow, stop shrinking,” he said. “Growth is a discipline.
People talk about the challenges their companies face in today’s marketplace where they feel the market is limited in size, or competition is incredibly fierce. Treacy doesn’t agree. “The challenge isn’t with the marketplace. The challenge is with management.” He cited examples of companies growing a double-digit growth from 1997 to now such as Starbucks, Johnson Controls and Osh Kosh Trucks, among dozens of others.
He said double-digit growth doesn’t have to come with companies in hot, high tech areas. One example was Johnson Controls. They make thermostats and auto interiors. They had a management team, Treacy said, disciplined for growth.
He said Osh Kosh Trucks is another interesting example. They were plugging along at single digit growth patterns then all of a sudden in 1997, they took off and started growing at 20% a year. He didn’t understand why would a maker of heavy duty vehicles like fire trucks just take off on this huge growth pattern. After doing some research, he found out. They just hired a chief executive that had worked at Johnson Controls.
“Growth is all about people,” he said.
Growth strategy focuses on five sources of revenue growth, base retention, share gain, market position, adjacent markets, and new lines of business, he said. Growth, Treacy said, is not an accident. The bigger you get, the more you have to build the capacity to grow, which means you have to have a plan and be ready to act upon it. You have to build the management discipline to grow, he said.
Treacy said the difference between growth companies and “other” companies is growth companies have a performance culture, while others have a “good enough” culture. Another difference is growth companies have a talent rich environment, while others don’t regularly think about talent.
“Growth is a management thing,” he said. “To improve growth, you have to engage the whole management team. Growth demands a management discipline – just like cost control.”
Is your management poised for growth? Talk to me.
While that may seem like an obvious and simple concept, a huge chunk of companies out there have no idea of how to grasp the idea of growth, said Michael Treacy, co-founder of GEN3 Partners and author of the book, “Double-Digit Growth during Tuesday’s keynote address at the MESA Second Annual Plant to Enterprise Conference in Orlando.
“If you want to grow, stop shrinking,” he said. “Growth is a discipline.
People talk about the challenges their companies face in today’s marketplace where they feel the market is limited in size, or competition is incredibly fierce. Treacy doesn’t agree. “The challenge isn’t with the marketplace. The challenge is with management.” He cited examples of companies growing a double-digit growth from 1997 to now such as Starbucks, Johnson Controls and Osh Kosh Trucks, among dozens of others.
He said double-digit growth doesn’t have to come with companies in hot, high tech areas. One example was Johnson Controls. They make thermostats and auto interiors. They had a management team, Treacy said, disciplined for growth.
He said Osh Kosh Trucks is another interesting example. They were plugging along at single digit growth patterns then all of a sudden in 1997, they took off and started growing at 20% a year. He didn’t understand why would a maker of heavy duty vehicles like fire trucks just take off on this huge growth pattern. After doing some research, he found out. They just hired a chief executive that had worked at Johnson Controls.
“Growth is all about people,” he said.
Growth strategy focuses on five sources of revenue growth, base retention, share gain, market position, adjacent markets, and new lines of business, he said. Growth, Treacy said, is not an accident. The bigger you get, the more you have to build the capacity to grow, which means you have to have a plan and be ready to act upon it. You have to build the management discipline to grow, he said.
Treacy said the difference between growth companies and “other” companies is growth companies have a performance culture, while others have a “good enough” culture. Another difference is growth companies have a talent rich environment, while others don’t regularly think about talent.
“Growth is a management thing,” he said. “To improve growth, you have to engage the whole management team. Growth demands a management discipline – just like cost control.”
Is your management poised for growth? Talk to me.
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