Sustainable Growth – How To Achieve It

I don’t think I’ve mentioned it for a while, but I’ve been a big fan of Inc. magazine for many years. Founded in 1979, Inc. provides small business ideas and resources for entrepreneurs.Advice to business owners on achieving sustainable growth

I’ve been a subscriber since 1997 (I think) and have followed it through 3 changes of editor, 2 changes of ownership and more changes of format than I care to think about.

It’s been interesting to watch how a magazine that gives advice about how to start and grow companies has fared itself. Inc. has had its challenges but it has dealt with them well – thus far at least.

Recently they set out to answer a question very dear to my heart. Why do so few companies manage to grow consistently?

They carried out a study of more than 100,000 U.S. based, mid-size companies (85 to 999 employees). The goal was to identify those that added head count each year from 2007 – 2012.

Less than 1.5% of the companies qualified.

Inc. selected a representative sub-sample and asked those companies – who now form the Build 100 – to help them find the “managerial DNA of their success”.

The project will run through 2014 but they’ve already come up with some fascinating information.

The companies are not all in the same industries; they don’t all serve the same customers; they’re spread throughout the U.S.; and some have been in business for much longer than others.

Here, however, are some of the things they do have in common:

  • Over 80% said that sharing financial success with their employees helped them grow. (I don’t know if that’s just sharing the information about success, paying rewards based on success, or both.)
  • More than half of them say that people/talent and customer service were the only drivers of competitive advantage.
  • 1 of the top 3 things, which triggered growth “breakouts”, was a big change in leadership/senior management.
  • 2 of the top 3 obstacles to growth were attracting top managerial talent and training future managers and supervisors.
  • 81% said the sudden loss of a key employee was a major concern.

Notice that all 5 of them are about people? I find that fascinating!

Stay tuned, I’ll offer more of my thoughts on some more of their findings over the next few weeks.

If you enjoyed this post you’ll also enjoy The People Pipeline

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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Tags: business owners, companies, execution, growth, Jim Stewart, Leadership, People, Planning, ProfitPATH, strategy, success, sustainable growth, talent

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