How to Overcome Barriers to Company Growth (Part 1)

Most company leaders aiming to accelerate sustained, exponential growth find the path is riddled with obstacles. The ambition to produce growth requires more than just a good product or service; it demands a holistic approach that encompasses a clear purpose, a compelling vision, and a committed workforce. And the attainment of these goals requires the ability to identify and confront the barriers preventing their achievement.

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With that in mind, this article is the first in a series intended to help business leaders identify the elements necessary for accelerated growth and the common hurdles they face in its pursuit. This article will break down the components that must be in place for a successful growth trajectory to occur, and the friction points business leaders encounter in their application. Subsequent articles will then address those friction points and what company leaders can do to overcome them. 

The 11 Key Elements of Business Growth

To reach the ambitious goals of exponential growth, your company will need each of the following 11 elements:

1. A Clear Purpose, Mission, and Vision: A well-defined purpose guides the direction of the company, ensuring that every decision aligns with a value creation vision and mission. This clarity is essential for driving sustained growth.
2. Market Demand: Your product or service must meet a genuine market need. Without adequate demand, even the best business model will struggle to succeed.
3. Total Addressable Market (TAM): A sufficient TAM is necessary to support long-term growth. If the market is too small, growth potential is inherently limited.
4. A Clear Business Model and Strategy: A solid revenue-generating business model, paired with a strategy for implementation and expansion, is critical.
5. Effective Financial Strategy and Adequate Capital: To support growth, businesses need a robust financial strategy and sufficient capital resources.
6. High-Performance Culture: A culture that sets performance standards and secures employee commitment to their achievement is a key driver of growth.
7. Superior Talent: The presence of strategic leaders and catalysts who can drive the business forward—not just “good” people—is the difference between modest and accelerated growth.
8. Unified Financial Vision: All stakeholders must be aligned with the financial goals and growth targets of the company.
9. Attracting and Developing Growth Partners: A strategy to attract, retain, and develop impact players is necessary for sustained success.
10. Highly Regarded Employer Brand: A strong employer brand, reflected in a high Net Promoter Score (NPS), ensures that the company attracts and retains top talent.
11. Inspirational Leadership: Leadership that fosters trust, confidence, and loyalty among employees is critical to sustained growth.
    

The Barriers Hindering Growth

Despite knowing the necessary elements they need, many companies struggle to achieve their growth ambitions because they confront a multitude of talent, culture, and performance barriers. These barriers can be categorized into macro factors and their symptoms.

1. Inadequate Employee Performance
   Symptoms: Lack of employee commitment and engagement, unclear performance standards, and ineffective performance management practices.
2. Lack of a Unified Culture
   Symptoms: Unclear purpose, mission, and vision, resulting in employees not being compelled by the company’s future or seeing themselves as part of it. A lack of aligned culture and inconsistent messaging about vision and priorities further exacerbate this issue.
3. Inferior Employer Brand
   Symptoms: High turnover, inability to attract and retain impact players, and a negative talent cycle where top talent leaves and is hard to replace, leading to low cultural morale.
4. Lack of a Unified Financial Vision
   Symptoms: Employee entitlement, dissatisfaction with compensation and benefits, and a lack of focus on value creation. Without a governing pay philosophy or a compelling compensation offering, companies struggle to motivate employees effectively.
5. No Line of Sight
   Symptoms: Employees often merely perform their job duties without understanding or owning the results expected from their roles. This disconnect between company vision, business strategy, and employee roles leads to a lack of ownership and accountability.
6. Negative Response to Leadership
   Symptoms: Inconsistent or unclear communication from leadership, a disconnect between management and employees, and negative internal dialogue about leadership lead to low employee morale and poor employer reviews.

Conclusion

Growth barriers are common, but they are not insurmountable. By acknowledging these hurdles and remaining focused on key components of growth, company leaders can remove obstacles, align their teams, and accelerate their path to sustained, exponential growth. The journey requires a commitment to continuous improvement and a willingness to address the underlying issues that hinder progress.

Stay tuned for future articles that address each of the growth barriers just identified and offer solutions to help you overcome them. 

To get a jump start on overcoming these obstacles, attend Accelerate 2024: a free, virtual event featuring 14 CEOs, authors, thought leaders and advisors sharing insights into how to overcome the growth barriers just discussed.