growth - how to create and manage it in your business
TRANSCRIPT
GROWTH How to create and manage it in your business
Russell Cummings Strategic Business Development April 2015
OUTLINE
Why Growth?
Tools for Finding Opportunities
Tools for Managing Growth
Change Success
WHY GROWTH?
• Many businesses have
ambitious growth plans
• “If you’re not growing,
you’re standing still...”
• Why? Profits, Brand, Scale,
Ego...
FINDING GROWTH
OPPORTUNITIES
GROWTH MATRIX
Market
Penetration
Market
Expansion
Product
Expansion Diversification
MARKETS Existing New
Existing
New
PR
OD
UC
TS
GROWTH MATRIX
Market
Penetration
Market
Expansion
Product
Expansion Diversification
MARKETS Existing New
Existing
New
PR
OD
UC
TS
1
3
2
4
ERRC GRID
ERRC GRID
By:
• Eliminating
• Reducing
• Raising
• Creating
• How can we transform our products and services?
• How can you modify the Value Proposition?
MANAGING GROWTH Harder than you think
CASH FLOW
• Must understand the cash implications of growth
• Monitor it closely – forecasts and projections
• Cash Drivers: Sales, Direct Costs, Overheads, Debtors, Creditors, Inventory
• Set up simple dashboards and monitor this closely
CAPACITY • Can we deliver what we’ve
promised?
• Forecast – Scenario Plan
• Look at capacity constraints: inputs, transport, delivery timeframes, outputs, people, lead times, cash.
• Updates
• Sales Pipeline – update and monitor
PERFORMANCE 1. Clear Objectives
2. Set the Key Performance Measures for each Objective
3. Set the targets
4. Drill down to Business Units and Teams
Example: 1. Objective: Increase Product X sales into China by
20% by December 2015
2. Measures & Targets: a) China Sales growth - $, units and % (rolling targets)
b) China Sales Margins %
c) China Forward Orders
CHANGE SUCCESS How to boost your probability of success from 30% to
much higher
Only 30% of change projects
succeed
Imagine the savings in time,
profit, growth, energy, success if
you could boost that figure to
70%?
PROJECT SUCCESS
100’s of factors that impact on
change success but which ones
have the MOST impact
Great Businesses achieved 16%
higher in change success
compared to Good Businesses
All factors are related /
connected. Change success is
about many adjustments in
many areas
NEW CHANGE SUCCESS MODEL
SUMMARY In Conclusion
NEXT SESSION
Our next webinar is at 5:30pm (Sydney time) on Wednesday, 6 May 2015
and will cover “Horticulture 2020 Paper – Future Trends for Australian Horticulture”
Russell Cummings Business Consultant
M: 0414 929 585 W: www.sbdbusiness.com.au E: [email protected]
Thank You