STAR PERFORMERS
Exceptional-growth companies have a simple but
definable characteristic: they not only grow fast, but also achieve compounding
revenue growth. There are three key
initiatives that lead to the critical actions required to get to a management
team to maximize its growth opportunities. They are:
1. Align management behaviors to not only beat the odds of failure, but
also achieve exponential revenue growth.
2. Utilize five or more of the 7 Essentials (see below) to achieve an
exponential growth business system.
3. Leverage tools and techniques to get on the same growth page and
create an actionable road map to enable sustainable and consistent growth.
Align management
behaviors
The best management teams focused on customers, created alliances within
their industries, reprioritized expenses and investments to remain cash-flow
positive and directed efforts to discovering new market segments.
Utilize five or more of the 7 essentials
1. Create and sustain
a breakthrough value proposition.
A value proposition represents the higher-order
benefits customers receive from using a company’s products or services in terms
that the customer highly values.
2. Exploit a
high-growth market segment. Industries such as specialty stores generated the highest number of
Blueprint Companies (companies that achieve exceptional growth)
3. Utilize “marquee”
customers to fuel exponential revenue growth. Customers can be more than customers. They provide exponential revenue
growth on a percustomer basis. They are also a powerful word-of-mouth sales
force to attract other customers.
4. Leverage
big-brother alliances for breaking into new markets. These alliances, in which a bigger company helps a smaller one, provide
credibility to the little brother, give it market intelligence, and lead it to
marquee customers.
5. Become the masters
of exponential returns.
Conventional wisdom suggests that companies should overinvest to grow.
The
technology industries serve to illustrate what it takes to create the
highest value
per company. In contrast to conventional wisdom, Blueprint Companies are
cashflow positive early and sustain this positive cash flow to $1 billion in
revenue.
6.
Practice inside-outside leadership. Contrary to the popular belief that one leader is the leader, the
inside-outside leadership pairs are highly prevalent among Blueprint Companies.
7.
Balance the board with essentials experts. The boards of Blueprint Companies are not packed
with investors, as one would think. Instead, Blueprint Companies recruited
customers, alliance partners, and other Blueprint CEOs to their boards. The
balance provided by investors, management, essentials experts and a CEO is
critical to attaining sustainable exponential growth over the long term.
Leverage
tools and techniques
First, the management teams must agree to
growth expectations, measured against their aspirations and the time-tested
revenue growth. Second, teams must identify performance gaps.
Develop
an action plan
Spend a few weeks developing an actionable
road map for each of the 7 Essentials. This unique road-map approach structures
actions for each essential against time to create an actionable project plan.
We separate each management practice, or essential, to force teams to identify
actions to improve the performance for each essential. Management teams need to
identify customers for this council, create customer advisory councils, and act
on their feedback to achieve
increased revenues per customer.
How
can you create your own road map? You or your team can create a project book derived from the
initiatives identified for each essential. Each initiative needs to have an
owner, a timeline, and a set of key success factors in order to ensure
efficient and timely execution. Refine the actions on your road map for the
next six months.
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