Is Your Growth Random, or Planned & Focused?

The most common business challenge I find when consulting in the print arena is that of attempting to be all things to all people. Certainly the strategy of one stop shopping is a sound one, but too often it may result in a scattered approach that waters down service AND profits.

When most businesses grow to where they are respected, a force in their niche, and profitable, it is not random good fortune. Most likely they found something their customers valued and needed, developed core competencies to provide it, and then streamlined the process to maximize return. This takes strategy, planning, training, commitment, and time.

One of two things usually happens next: 1) Complacency sets in 2) We expand helter skelter. No good leader wants stagnancy, so the usual response is to attempt growth, usually through either of two approaches. We look for additional products to produce (whether the customers want/need them or not) on existing equipment, or we look for a magic bullet product/service that complements our existing operation.
Let's look at this.

Although either of the two above approaches can work, the odds are against it. What really needs to happen is a third alternative: Strategic Planning. Many of us would agree, but why then does it only happen about 20% of the time?

First of all, several people (including myself) are doers rather than planners. Planning takes time, money, and thought. Many strong leaders would rather get at it, and go by their gut. It can seem quicker, less costly, and it certainly (for me) is more fun. We must however, resist the temptation. Why?

I would submit that we forget what got us there. A new venture, plant, or division is a large undertaking and we usually approach those kind of challenges with a systematic approach. We learn about the need; we brainstorm how to satisfy it; we put together a focused product or service; and we figure out how to build/provide it. Most of the time, with a passion!

Why then don't we continue that PROCESS? Forgetting what got us there could mean that we think we have all the answers, or that we can take shortcuts and still get there. Both of these attitudes are problematic.

Strategic Planning avoids these pitfalls, and makes the journey a more objective one, rather than simply following our gut. In the next 2 articles, we will take a look at what Strategic Planning is, and then how we arrive at that most important destination: focus.