Conservative
companies focus on the bottom-line as their primary
measure of success and demonstrate a steady balance sheet
and profit and loss statement. High growth (go-go)
organizations are dynamic with a desire for
top-line growth. Although both understand the importance
of steady profit and growth, they measure success
differently.
This quick self-analysis will help you determine the importance of
growth within your organization. Be careful not to
respond with your personal desires, but with actual
performance results over the last 3 years.
Has your organization met it's written growth objective in each of the last three years?
Was growth at the expense of profits or margins?
Does the business plan target growth and measure results?
Is your company investing in R&D, compared to the past? (3-5% of annual sales is a reasonable minimum benchmark.)
Have you launched truly new products, not just line extensions, in the last 3 years?
Has your marketing department brought new opportunities to the company? If so, can you point to meaningful success?
Has your company made strategic/business alliances/acquisitions during this period?
Is there someone assigned to business development who can document progress and results?
Do you have meaningful manufacturing expansion plans in progress?
Do you really know where new growth will come from in 1-3 years?
If your total score
exceeds 42 points, you're a "STAR" organization.
Keep up the excellent work, but guard against
complacency. Below 33 points is the danger zone and
spells concern, particularly when there is a downturn in
the economy or competitive threat.