What is the Best Top Growth Strategy for 2011?

How does a business outperform the stock market in good times and insulate itself from fallout during the bad times? A study from the University Of Southern California Marshall School Of Business says innovation is the key. In addition, according to the post, 5 Ways to Grow Revenue with Green Innovation, states, "top executives now say that innovation is their top growth priority and addressing sustainability issues are critical to their success. In large sample size surveys conducted this year, 84 percent of executives told McKinsey that innovation is extremely or very important to their companies’ current growth strategy, 93 percent of CEOs told Accenture that sustainability issues will be critical to their future success and 95 percent of those CEO’s said sustainability considerations should be fully integrated into their strategy and operations."

Sounds great, but where do sources of innovation come from? For starters, an open innovation approach to business sustainability offers stakeholders the opportunity to become engaged in the future of a business. Recognizing that key stakeholders have a vested interest in the success of the company creates openness to new ideas that promote business success and innovative ideas. Employees are oftentimes viewed as internal stakeholders contributing to innovation within a business but what about your customers?

The post, Great Customers Inspire Great Innovations, sites "The most important link in the innovation value chain is an innovative customer. That is, a customer ready, willing, and able to adopt, adapt — and maybe even pay for — an innovative offering. Just as you don't have a performance without an audience, you can't have innovation without customers." Furthermore, “The essential question is who are the customers that come with the problem sets and parameters that push you to rethink, or redefine, your business? Which customers and clients does your firm celebrate as innovation partners — and why?"

Innovation, internal and external to a business can be generated by harnessing a business sustainability framework. Consider the following sustainable business strategies as a precursor to innovation in business:

Integrating sustainability concepts (recycling, paperless office, energy efficiency) in the business brings eco awareness to the workplace and also creates a space for innovation to occur within your operations by performing daily operations with an environmental mindset. Elements of environmental business attract commitment, energize employees, creates meaningful work, and positively impacts your business as well as the planet.
Customer connection translates as stakeholder engagement. Stakeholder engagement is a means to capture value through proactively acknowledging and addressing the underlying needs and concerns of those impacted by your business, product or service. A deep and direct relationship with the market and customers helps small businesses understand customer needs, identify new opportunities, and fix problems quickly and efficiently.
Open collaboration and information sharing combined with the competitive landscape of business drives innovation. Not only are improved products/ services defined, but also the formation of improved sustainable industry best practices, creation of similarly valued eco conscious companies and networks. Businesses collectively working together can be a catalyst for supplier innovation as well.

By allowing for an environment of creative ideas and inspired actions, businesses can create an innovative culture that promotes long-term business sustainability.

Comments for What is the Best Top Growth Strategy for 2011?

Saturday, January 8, 2011 by Stephen Bateman:: Julie, your post makes some excellent points about innovation and sustainability, linking the initiatives to the findings of the study. However, speaking from experience, I'd say that REFOCUSING a business around core activity is the the best strategy for growth and sustainability in 2011. No business can afford to waste resources or energy on non-core activity; we're operating in times that require leaner and leaner activity. That's an economic, social and environmental truth. In my view, too many businesses still waste valuable resources and energy creating things they are not good at, bringing to market mediocre products that miss their target and which result in waste and expensive, unethical mothballed stock. So, I would advocate that, in order to grow in 2011, businesses need to pursue a strategy of "more from less" or "less is more". What's more, I believe that this policy will be one the few constants in the world of business for the many, many years to come. Easier said than done. Old habits die hard. People don't lead change very well. But business leaders will need to shrink, divest activities that were added in leaner times, refocus and regrow their businesses to create less wasteful operations, around the core customer groups and communities they serve best. This strategy will benefit the 3 bottom lines of profit, planet and (some) people. Unfortunately, it's not so good for the people who's positions are made redundant in the process of rightsizing, but it does benefit those who stay and whose energy and productivity improves from a clearer sense of purpose and renewed focus. The fact we lead this process every year in the garden gives me comfort: we prune the dead wood on shrubs so the green can flourish again. In business it's the same, a company can not grow and grow. It's a tough call but recessionary times have their purpose. http://www.greenwisebusiness.co.uk/