The Blueprint for Sustained Growth
Unlocking the Power of Integrated Growth Systems
The Value of Consistent Growth
Delivering consistent revenue growth is challenging. Yet, some companies have cracked the code by investing in an integrated growth system encompassing capabilities that drive short- and long-term expansion. Tactical initiatives to spur episodic growth often prove resource-intensive and unsustainable. In contrast, Growth Champions take a strategic, systemic approach centred on fundamentally understanding and delivering differentiated value to customers.
Analysis by PwC of over 2,000 companies revealed the top quintile of fastest-growing firms over 2018-2022 massively outperformed the rest in valuation. The companies were grouped into quartiles according to their five-year compound annual growth rates (CAGRs). The most consistent high performers amongst those leaders fetched even higher premiums, averaging 4.2x revenue versus 2.8x for other fast-growing peers. This phenomenon demonstrates the substantial value created by reliable growth.
Key Components of a Growth System
These growth champions share the common thread of developing an effective growth system consisting of five interconnected components:
1. Compelling Customer Outcome
Focusing on delivering a compelling customer outcome in niche areas where a company has a clear advantage is crucial. Instead of trying to appeal broadly across diverse markets, honing in on specific strengths allows for more targeted and practical solutions. Tools like the Attribution Framework, Value Proposition Canvas, and Jobs to Be Done can be instrumental in achieving this customer-focused approach, enabling firms to define and meet their customers’ unique needs clearly and expectations.
2. Specialised Capabilities
Designing highly specialised capabilities in product design, analytics, supply chain logistics, and ecosystem partnerships is vital to consistently fulfilling targeted customer promises. Understanding the leading metrics influencing Net Promoter Scores (NPS) and Net Revenue Retention allows for a deeper insight into customer satisfaction and loyalty, guiding strategic decisions to enhance overall business performance.
3. Cross-Functional Teams
Establishing cross-functional teams that bridge gaps between marketing, sales, product development, and service delivery fosters seamless integration and high performance. Adopting frameworks like Objectives and Key Results (OKRs) and Target Operating Model (TOM) enables leadership to transcend functional silos, operating as a unified, high-performing team. This approach minimises client friction and propels growth by delivering cohesive, client-focused solutions.
4. Customer Insights
Incorporating systems to constantly capture customer feedback across all stages, from the initial sale to after-sales support, shifts the focus from occasional surveys to continuous engagement. This approach ensures real-time insights into customer experiences and needs, enabling swift adjustments and enhanced customer satisfaction. Rockefeller Habit #6 is reporting and analysis of customer feedback data, which is as frequent and accurate as financial data. Additionally, analysing customer feedback is a standing item during Level 10 leadership meetings. This consistent review underscores the priority placed on customer satisfaction and the role of feedback in shaping company direction.
5. Continuous Innovation
Allocating resources to scale the most productive growth investments based on measurable outcomes, then redeploying gains. By focusing on giving resources to Objectives and Key Results (OKRs) over merely sticking to business as usual (BAU), the CEO ensures that the company’s investments are directed towards ongoing innovation. This approach aligns the organisation’s efforts with strategic goals, promoting progress and adaptability.
Establishing a growth system is a long-term endeavour that requires sustained effort and leadership, starting with the CEO and extending through the executive team.
The SCALE UP programme is designed to support this journey.
Over time, this strategic focus compounds, enhancing offerings, operations, data, and experiences, thereby ensuring consistent expansion.