Growth Excellence Matrix: Driving Top-line Performance to the Upper Right


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In Frost & Sullivan’s 2013 Corporate Strategy & Corporate Development Priorities Survey executive challenges and priorities for driving further organisation growth were identified.
The following presentation shows exactly where the management team needs to focus their efforts with the greatest impact on improving their growth competency—and ultimately their revenue growth performance.

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Growth Excellence Matrix: Driving Top-line Performance to the Upper Right

  1. 1. Growth Excellence MatrixDriving Top-line Performance to the Upper RightPresented by:Ryan Sherring: Regional Head of AfricaRichard Lee Nash: Project ManagerGrowth Implementation Solutions14th May 2013© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. Today’s PresentersRyan brings a wealth of experience indesigning and implementing corporate growthstrategies across the African continent.Particular expertise in:• Strategy Design & Implementation• Business Optimisation• Business TransformationRyan has over 7 years of consulting experiencewith a strong education• MBA• BCom: Finance & EconomicsRyan SherringHead of AfricaGrowth ImplementationSolutionsFrost & SullivanRichard Lee NashProject ManagerGrowth ImplementationSolutionsFrost & SullivanRichard brings experience across multiple industrysegments, organizational structures, cultures andregions. Particular expertise in:• Growth initiative identification and prioritization• Strategy Development and Implementation• Business Transformation• Innovation and SustainabilityRichard has over 7 years of consulting experiencewith a education including:• BCom honours (Financial Analysis & PortfolioManagement)• BCom: Finance, Economics & Statistics
  3. 3. Focus PointsIntroductionExecutive Management’s Key ChallengesGrowth Excellence MatrixOverviewPurpose & BenefitsKey MetricsMethodologyExample OutputsQuestions
  4. 4. Challenges Faced by Executive ManagementIn Frost & Sullivan’s 2013 Corporate Strategy & Corporate Development Priorities Surveyexecutives challenges and priorities for driving further organisation growth were identified.Key Challenges Identified:1. Balancing demands for short term profit with long term strategic goals2. Embedding insights from future trends into strategic planning3. Aligning division level strategies with corporate strategyMisalignment Leads toSub-Standard Growth
  5. 5. The Growth Excellence Matrix (GEM): Clarify, Align, FocusPriorities identifiedopportunities forimplementationGEM DefinedA survey-based tool that helps executive teams improve top-line performanceBenefitsA GEM engagement offers a process and roadmap for time-oppressed executive teams toconcentrate on and solve the issues most likely to improve top-line results. GEM adds rigorto the strategic planning process, gets key people on the same page, prioritizes limitedresources, highlights improvement opportunities, and reveals future growth potential.PurposeClarify executiveteam’s growthprioritiesIdentify areas ofexecutive teammisalignmentPinpoint areas forfocusedimprovementClarify Identify Pinpoint Prioritise5
  6. 6. GEM: Assessing Key Growth CapabilitiesGEM assesses 20 drivers critical to successful top-line growth:Strategy Formulation• Growth Benchmarking• Growth Pipeline Creation• Growth Pipeline Evaluation• Business Environment Understanding• Visionary Platform Establishment• Vision Alignment of Executive Team• Strategy and Vision Congruence• Key Growth Process CapabilitiesAssessment• Risk AssessmentStrategy Implementation• Operational Alignment and Planning• Resource Alignment• Measurement Systems Establishment• Strategic Plan Communications• Incentive Alignment• Sales Effectiveness• Marketing Impact• Finance Execution• Research & DevelopmentAccomplishment• Customer Alignment• Leadership Change Readiness
  7. 7. Propelling Your Firm to Increased RevenueSurvey isconductedExecutive team’stop priorities arerevealedMethodologyEffectiveness score isprovided for each driver (withchallenge areas pinpointed)Areas of executiveteam misalignmentare highlightedFocused improvementrecommendations aremadeReport providedto clientGEM workshop isconducted withimprovement-orientedaction plansdeveloped7
  8. 8. Importance of Growth Strategy Formulation Drivers toCompany LeadersSource: Frost & SullivanThe table below depicts the relative value your executive team places on proven growth strategies. Your team valuesidentifying and evaluating new growth opportunities above other approaches.Strategy Drivers by Rank of Importance Percentage1. Growth Pipeline Creation 67%2. Key Growth Process Capabilities 56%3. Growth Benchmarking 53%4. Growth Pipeline Evaluation 49%5. Business Environment Evaluation 46%6. Visionary Platform Establishment 44%7. Strategy and Vision Congruence 38%8. Risk Assessment 35%9. Vision Alignment of Executive Team 32%8EXAMPLE
  9. 9. Growth Strategy Formulation EffectivenessEach of the growth strategy formulation drivers depicted below is defined through five individual activities that a companyshould perform. The aggregated score of those five activities gives an individual index score per growth driver. Thefindings indicate a need to formalize the process for creating growth ideas; similarly, the firm might benefit from a broaderuse of growth levers.Strategy and Vision CongruenceGrowth BenchmarkingRisk AssessmentVision Alignment of Executive TeamVisionary Platform EstablishmentBusiness Environment UnderstandingGrowth Pipeline EvaluationKey Growth Process Capabilities AssessmentGrowth Pipeline CreationGrowth Strategy Formulation Effectiveness9EXAMPLE
  10. 10. Growth Strategy Formulation Drivers AlignmentThe extent of agreement on growth strategy formulation drivers between members of the executive team is depictedbelow from highest misalignment on the left to greatest alignment on the right. The taller the bar, the greater themisalignment. Additionally, it is useful to compare the CEO’s responses (yellow circles) to the rest of the team’s.Adheres to aGreat ExtentDoes Not Adhereto At AllAdheres toSome ExtentGrowthBenchmarkingGrowthPipelineCreationGrowthPipelineEvaluationBusinessEnvironmentUnderstandingVisionaryPlatformEstablishmentVisionAlignmentofExecutiveTeamStrategyandVisionCongruenceKeyGrowthProcessCapabilitiesAssessmentRiskAssessmentExecutive Team Alignment (Highest Misalignment to Tightest Alignment)MedianValueCEOLowestResponseHighestResponseMiddle67% ofResponses10EXAMPLE
  11. 11. Growth Strategy Formulation Effectiveness Deep Dive:Growth Pipeline CreationThere is a significantly negative view of the firm’s ability to generate new business ideas and share/communicate the mosteffective approach to doing so.IdeaGenerationTechniquesIdeaContributionIncentivesExternalIdeaCaptureKnowledgeManagementSystemWidespreadKnowledgeof ApproachActivities Effectiveness (Highest to Lowest Median)Adheres to aGreat ExtentDoes Not Adhereto At AllAdheres toSome ExtentMedianValueCEOLowestResponseHighestResponseMiddle67% ofResponses11EXAMPLE
  12. 12. Key Take-Aways– The 20 key drivers can be used to examine your company’s strategyformulation and implementation processes and capabilities– Understanding your companies growth drivers is essential to drive revenuegrowth– The Growth Excellence Matrix structures executive inputs to generateinsights into the strength, weaknesses across 20 key growth capabilitymetrics to pinpoint areas for improvement– The Growth Excellence Matrix compliments your strategic planning by identifygaps in strategy, implementation capabilities, and executive alignment– The strategic roadmap developed will significantly improve your company’sgrowth capabilities across the key driver to significantly improve revenuegrowth
  13. 13. Next StepsDevelop Your Visionary and Innovative SkillsGrowth Partnership ServiceShare your growth thought leadership and ideas orjoin our GIL Global CommunityJoin our GIL Community NewsletterKeep abreast of innovative growth opportunities
  14. 14. Your Feedback is Important to UsGrowth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other?Please inform us by “Rating” this presentation.What would you like to see from Frost & Sullivan?
  15. 15. Frost & Sullivan
  16. 16. Ryan SherringHead of AfricaGrowth Implementation SolutionsFrost & SullivanT: +27 (0)21 680 3564Ryan.Sherring@frost.comCape TownMaitland II buildingRiver ParkLiesbeek ParkwayCape TownSouth AfricaTel: +27 (0)21 680 3260Fax: +27 (0)21 680 3296For Additional Information