Beyond the numbers
Growing an enterprise is a daunting task, but sustaining growth is even harder. Often companies go through growth spurts and eventually stabilize. Few enterprises can find the right formula for scaling into a broad market. According to a recent McKinsey study there are three distinct phases that a growth enterprise goes through.
Part One: Five critical enablers of growth: market, monetization model, rapid adoption, stealth, and incentives.
Part Two:Expansion. offer to new geographies or channels, extending the act-one success to a new product market, or transforming the act-one offer into a platform.
Part Three: Managing transitions. Successful companies master the transition from one act to the next. Pitfalls include transitioning at the wrong time and selecting the wrong strategy for the next act.
In the same study McKinsey found that growth yields greater returns, predicts long-term success, and matters more than margin or cost structure. A financial plan must be performed with this underlying framework.