Everyone talks about growth as an obvious company objective. But how many people truly understand what adopting a growth mindset in your organisation involves. We’ve collated the 10 core behaviours companies display that drive consistent growth. How many does your company utilise?
1. Prioritize Competitive Advantage: Focus on developing a scalable business model that consistently delivers strong returns on invested capital (ROIC). Companies that excel in this behavior attract more capital, which fuels faster growth and reinforces their market position.
2. Capitalize on Market Trends: Actively seek out and invest in fast-growing, profitable markets. Embracing market trends and tailwinds allows companies to stay ahead of competitors, while avoiding stagnation in declining sectors.
3. Outgrow Industry Peers: Always aim to grow faster than others in your industry. By adopting the mindset of surpassing industry averages, companies can increase shareholder returns and strengthen their position within the market.
4. Maximize Core Business Growth: Ensure that growth begins with optimizing the core business. A thriving core is essential for sustaining overall company growth, as an underperforming core makes it difficult to build momentum elsewhere.
5. Expand Beyond the Core: Proactively explore opportunities in adjacent business areas. By extending into industries related to the core business, companies can generate additional revenue and boost total shareholder returns (TSR).
6. Leverage Existing Strengths (eg logistics): Growth should occur in industries similar to the company’s existing expertise. By leveraging established capabilities, companies can efficiently expand into new areas where they have a competitive advantage.
7. Dominate Local Markets: Establish a strong foothold in local markets before looking to expand globally. Winning at home creates a solid foundation for sustainable growth and positions companies for broader success.
8. Expand Globally if Strong Locally: International growth should only be pursued when the company has already demonstrated strength in its home market. Companies with successful local operations are more likely to replicate that success on a global scale.
9. Pursue Programmatic Acquisitions: Make small, frequent acquisitions to build growth over time. This behaviour strengthens organisational capabilities, reduces risks, and generates more consistent returns than large, one-time deals.
10. Prune to Thrive: Be willing to divest underperforming assets and reinvest in high-growth areas. This strategic behaviour ensures that the company can maintain its growth trajectory by focusing resources on areas with the greatest potential for profitability.
Each of these behaviours shapes a company’s ability to drive growth by fostering strategic investments, efficient operations, and proactive market positioning. By embedding these actions into their growth strategy, businesses can not only outperform peers but also build sustainable, long-term success.
