Innovation and Growth Strategy: The key to better organizational productivity and success
A key driver of Innovation and Growth Strategy for innovative organizations has been how they harness data and people to meet their business objectives. A key strategy term drawn from military vocabulary is VUCA- volatility, uncertainty, complexity and ambiguity of general conditions and situations.
It has been subsequently used in emerging ideas in strategic leadership that apply in a wide range of organizations, including everything from for-profit corporations to education. It appears that even with the difficult business conditions today faced by most sectors, the mid market seems to be performing better, based on an Arcus survey of 245 CXOs in the mid market earlier this year.
However, a frequently mentioned challenge has been escalating costs that are moving in concert with higher growth. An analysis of 245 companies in the mid market indicates that 74% report that controlling costs and increasing the visibility of cost drivers is their top priority. Most mid market companies say that they plan to augment their ability to move quickly to respond to changing market environments with accelerated decision frameworks and decision making and course correction.
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What can senior executives learn from these strategies?
The new market environment demands, above all else, a significant increase in agility and flexibility- an ability to stay ahead of emerging threats with pre-emptive strategic actions within a risk management framework. A key strategy term drawn from military vocabulary is VUCA- volatility, uncertainty, complexity and ambiguity of general conditions and situations. It has been subsequently used in emerging ideas in strategic leadership that apply in a wide range of organizations, including everything from for-profit corporations to education. In essence, competitive companies are looking for incremental first mover advantages in specific areas of their businesses. This could be minor adjustments in their product portfolio to address new niche segments or increasing their investments in new sales deployment strategies and training.
Harnessing VUCA- volatility, uncertainty, complexity and ambiguity
The relevance of VUCA in a business environment relates to how managers view the conditions under which they make decisions, foster change, plan forward, manage risks, and solve problems. In general, the premises of VUCA tend to shape an organization’s capacity to:
- Anticipate the Issues that Shape Conditions
- Understand the Consequences of Issues and Actions
- Appreciate the Interdependence of Variables
- Prepare for Alternative Realities and Challenges
- Interpret and Address Relevant Opportunities
Arcus has identified some key emerging approaches that high performance companies have adopted in highly competitive markets. These top five strategies have proven to deliver significant top-line growth in challenging environments where others have failed.
- Prepare for growth – Most companies do not invest in the groundwork required to harness new markets. They assume many outcomes and tend to over estimate results. As a result, they expose their companies to unanticipated risks.
- Make sure you know what you don’t know – Improving business forecasting by using scenario planning strategies can have a significant impact on how you calibrate results.
- Put people first – The key driver of growth over the past decade has been the capacity of organizations to reinvent themselves. This has been possible only because of significant investments in human capital and training.
- Ask what could be – High performance companies are constantly looking for what is next- how to capitalize on emerging customer needs, where markets are headed in 1-3 years.
If you are interested in discussing a performance management plan to transform your organization, please contact our managing partner, Merril Mascarenhas, by phone at +1 (416) 710-2727 or Email.
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