Monday, October 24, 2016

How growth champions create new value

Interesting take on what we covered in our Org Growth Class. Strongly recommend you read the full article

Three horizons of action for creating new growth
NOW initiatives find growth through new niches within categories, segments, and markets. NEW actions focus on developing new products and services. NEXT initiatives capture organic growth from new business models 
NOW initiatives focus on new ways to generate growth quickly. This could mean selling an existing product in a new channel or market, launching a product variant, rejuvenating a core product by infusing it with new meaning, or opening up micromarkets. NOW initiatives have a high likelihood of impact, often require relatively little effort, and take a rather short time to implement. They represent a company’s “bread-and-butter business,” as one CMO described it 
NEW initiatives take something that works and use it as the basis for innovation, i.e. launch a new product, expand a brand into a new category, or address new segments. Because NEW initiatives venture beyond existing business, analyzing the market as it is won’t be enough. Identifying unmet needs and spotting NEW opportunities require being close to consumers and customers 
NEXT initiatives try out new business models, explore disruptive ideas, and create things from scratch. Often they take a lot of time and energy and have highly uncertain outcomes. But if they work, they can have huge impact. Disruptors, such as Uber, AirBnB, and Netflix, are leading the way in this respect.

We also found that “growth champions” tend to exhibit the following characteristics: 
They take a structured approach to creating and managing their portfolio of growth initiatives. “You have to be systematic when going after revenue growth.
They use advanced analytics and agile insights techniques to spot opportunities. They don’t expect to come up with market-beating ideas by looking at the same data in the same way as their competitors do. They unleash the power of advanced analytics on highly granular consumer/customer data to develop distinctive insights, and they mobilize their organizations to act on them quickly
They mobilize for quick results, beating competitors to the market.A common complaint is that many marketing organizations are too slow, taking up to two years to bring a simple consumer product to market or a year to launch a new campaign. In today’s marketplace, the emphasis is on speed-to-market and on rapid test, learn, and optimize. Many of our growth champions have adapted tech-company techniques, e.g., hackathons and rapid prototyping, to learn fast and drive results quickly.

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