The Paradox of Growth

The Paradox of Growth

Growth creates complexity and complexity is the silent killer of growth. The roots of sustained performance start deep inside, and they are predictable in a growth environment. Growth also scares a lot of creative entrepreneurs when they think of the challenge of expansion.

 

External Story of any Business

This is the narrative that plays out in the marketplace in the form of:

  • Quarterly EarningsProfitable Growth
  • Returns to shareholders/Market Share

    This is the story that is easiest to track, and it’s the one that most people – boards of directors, investors, the media and the public – choose to follow. It’s a story about how a company wins on the outside by serving the customer better than its competitors.

    Internal Story of any Business

    The second story plays out inside a company and it’s much less visible. It’s a story of:

    Building the business/Retaining a quality workforce

    Strengthening the culture/Upgrading the systems

    Some companies excel externally but are troubled internally; others are troubled externally but excel internally. Ultimately though, companies have to excel in both arenas if they want to succeed. The plot lines have to converge.

    You can’t sustain profitable growth in a competitive market if you are a disaster internally, and you can’t maintain a high- performance culture internally for long if you are failing in the marketplace.

    In order to build a successful business in the 21st Century, the Entrepreneur would have to apply techniques and strategies that have not yet been trail and tested because of the ever changing global business environment.

     

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