In today's turbulent economic landscape, high-growth companies are still targeting double-digit growth in fiscal 2023. These companies are unique in that they leverage strategic diversification, collective leadership, and the ability to thrive in the face of stressors and shocks.
37% of high-growth companies, according to research by Gartner, employ three key practices to propel their growth objectives: establishing collective executive responsibility for growth, diversifying strategies and portfolios, and incorporating "antifragile" practices into their operating models.
The first practice is to establish executive accountability for growth collectively. By adopting joint objectives and a shared growth agenda, high-growth businesses encourage their executive teams to pursue growth objectives collectively.
This agenda is then distributed among multiple executives to ensure that everyone is working towards the same targets. This approach ensures that the organization is focused on growth and not just on individual goals.
The second practice is to diversify strategies and portfolios. High-growth companies recognize that they cannot rely on a single strategy or product to sustain growth. Instead, they adopt a diversified approach, exploring new markets, creating new products, and expanding their services.
By diversifying, these companies can spread their risk and reduce their exposure to market downturns. This approach also allows them to capitalize on new opportunities as they arise.
The third practice is to embed "antifragile" practices into their operating models. These practices increase the enterprise's ability to respond and even thrive amid a range of external operating conditions.
This approach recognizes that uncertainty and disruption are inherent in today's business environment and that the ability to adapt and respond quickly is critical. High-growth companies achieve this by running more small, safe experiments, both internally and with clients and products.
Accepting that this is the only way to learn in uncertain times, they implement strategies that promote antifragility by bringing uncertainty within the organization, valuing optionality, and experimenting to learn.
High - growth companies have three key practices that drive business performance. They establish collective executive responsibility for growth, diversify strategies and portfolios, and embed "antifragile" practices into their operating models.
By adopting these practices, high-growth companies can continue to thrive in today's turbulent economic landscape and achieve their growth targets. As business leaders, it is critical to recognize the importance of these practices and adopt them in our own organizations to drive performance and achieve long-term success.