TO LEARN MORE
The National Center for the Middle Market’s recent research revealed that, for the majority of middle market businesses, formal growth strategy is second only to market expansion in terms of weight in the growth equation. While some strategic focuses lead to more rapid revenue growth than others, it’s not just what the strategy dictates that matters. How the strategy is defined, developed, and executed also play essential roles in strategic success and a company’s rate of growth. In the middle market, companies must master the three mutually-reinforcing elements of strategy—definition, development, and execution—in order to realize their vision and achieve their goals at a faster rate than their peers.
How Middle Market Companies OPERATE Within Their Supply Chains
The Perfect Link
strategy success & company growth
rely on three elements
1. strategy definition & articulation
the three pillars of strategy success
mutually reinforce each other
keep up with business periodicals & literature on strategy
stay up to date with business press
ENSURE MANAGEMENT's ASSUMPTIONS CAN BE CHALLENGED
HAVE Formal Strategy
By understanding growth factors and growth DNA type, executives can make smarter choices that benefit companies, employees, and communities.
CAN ARTICULATE HOW
THEY ADD VALUE
A well-defined middle market growth strategy helps companies better articulate the value they offer. Those that can speak to their value proposition grow half again as fast as those that cannot.
Rapidly-growing firms do not necessarily have a more
formalized strategy-development process. But they do
factor in a wide range of both internal and external inputs.
2. robust strategy development process
CREATE process to allow bottom-up ideas to reach management
Effective middle market growth strategy execution requires aligning goals, key performance indicators, and incentives with strategy and providing feedback on how employee performance contributes to strategy.
3. capabilities to translate strategy into execution
The company's current initiatives are aligned
with company strategy
revenue growth 10%+
We have the ability
to translate strategy
Our company strategy
takes into account marketplace realities
There is internal
alignment on our
Our company strategy
is flexible enough to
meet the changing
needs of the market
We allocate sufficient resources to implement
Employee performance measures are well
aligned with overall company strategy
Companies that have specific ways to challenge management's assumptions are more satisfied with overall strategy
Companies with a bottom-up strategy development approach are more likely to have a well-defined strategy
When strategy is well-defined, satisfaction with execution triples
Companies that believe they execute well are more likely to have a well-defined strategy
Companies whose strategy process includes specific steps to challenge management's assumptions are confident the strategy will succeed
Companies that are highly satisfied
with execution are more likely to ensure bottom-up ideas
A good process leads to a better strategy and better execution while a well-defined strategy is easier to execute and invites more engagement in the development process. Effective execution drives middle market growth that feeds future investment and reveals where strategy development and definition need more work.