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Growth is every CEO's challenge - Deloitte Consulting Presentation
 

Growth is every CEO's challenge - Deloitte Consulting Presentation

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A talk delivered by Deloitte Consulting's Director - Mike Vincent to the Mentors of Ort Jet South Africa

A talk delivered by Deloitte Consulting's Director - Mike Vincent to the Mentors of Ort Jet South Africa

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    Growth is every CEO's challenge - Deloitte Consulting Presentation Growth is every CEO's challenge - Deloitte Consulting Presentation Presentation Transcript

    • Growth is every CEO’s challenge Lessons in growth October 2013 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth Lessons from the Trenches What does the research say? Growth in turbulent times! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth is critical for TSR ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Equity markets demand growth ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Spinning straw into gold is not easy! Over the period 1987 – 2005, Deloitte researched close on 5,000 companies in the USA to establish patterns of growth and critical success factors Companies that attained critical mass (more than $250M) have a greater chance of surviving Of the companies that survived, only 27% experienced high growth that is two times that of market CAGR. Among companies analysed, only 6% achieved performance enhancing growth over the long run i.e., growth that also improves the bottom line and key performance metrics ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth stalls are common and troublesome 87% of historic Fortune100 and Global 100 companies hit some type of growth stall* between 1955 and 2006 More troubling are the long-term effects of growth failure: 54% of companies that experienced growth failures posted slow to negative growth during the 10 years after the growth stall occurred * A “stall” is defined as the moment in time that represents a turning point, or significant downturn, in corporate revenue growth ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Causes of growth stalls can be managed In total, 87% of the factors that most often contribute to growth failure are within management’s control ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Building the right internal capabilities to execute is critical to success ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Beating market growth expectations and closing the “Growth Gap” is key ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Matching risk appetite with ambition ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Constructing a growth portfolio that aligns with your risk tolerance All three portfolios will provide the same projected annual revenue growth ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth Lessons from the Trenches What does the research say? Growth in turbulent times! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Deloitte 13 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • This factor drives 90% of success or failure of any growth initiative ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Deloitte 15 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Deloitte 16 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Deloitte 17 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • ENSURE ACCESS TO A BANKER 6 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • 7 USE TECHNOLOGY TO MAXIMISE RESULTS ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • REWARD THE RISK TAKERS 8 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • IF YOU MUST FAIL, FAIL QUICKLY 9 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • RESULTS CHANGE CULTURE, COMMUNICATE 10 ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • GROWTH LESSONS FROM THE TRENCHES ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • GROWTH LESSONS FROM THE TRENCHES ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Change happens FAST Black swans are the norm, not the exception Everything is being commoditised Great customer service has become table steaks, not a differentiator ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Change happens FAST There is unprecedented volatility wherever you look The connectivity revolution is changing the world as we know it! Technology is changing the very fabric of our societies – FAST! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Change happens FAST People don’t trust banks and the government anymore To stay ahead, eat yourself before someone else does! Industries are converging – where is yours? Growth requires a fresh perspective ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Change happens FAST “Do you remember 2013?” Ethnic conflicts, AIDS and terrorism Disillusionment with government Human politicians…the end of heroes Businesses more powerful than governments End of ‘nationalism’ and an explosion of new ‘borderless’ loyalties This was the realisation of the age of the individual – “I want it all and I want it now”! Democracy and technology were the catalysts! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • ….and what about growth? 71% of TSR comes from REVENUE growth Many companies have to run twice as fast just to stand still! Outperforming the market is difficult – you need to build special capability Growth stalls are common – and troublesome! Much of what creates growth stalls can be controlled by management Portfolio, portfolio, portfolio!!! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth lessons from the trenches 1. Metrics and targets drive success! Starting with a clearly articulated growth target is crucial for galvanising the organisation. 2. De-link Business of Today from the Business of Tomorrow! Recognise that the two are very different. One typically leads to incremental growth, the other to quantum growth. 3. Deploy the right dedicated resources! Rotating high fliers through a growth office is both transient and sure to be unsuccessful. Growth requires a combination of different skill sets. ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth lessons from the trenches 4. Seek widely for opportunities! You can’t simply extrapolate from the past. The most powerful successes are not predictable. Taking risks is safer than doing nothing! 5. Make the growth process repeatable and sustainable! Setting up a governance process to make investment trade offs in a considered approach helps an organisation to manage risks. ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth lessons from the trenches 6. Ensure access to the banker upfront Corporate antibodies focused on the business of today are sure to win the battle for investment capital. Spinning straw into gold takes time and investment – have your lines of credit agreed upfront! 7. Use technology to maximise results A digital skin with one internal clock that runs 24x7x52. Use the entire technical resource base at your disposal. 8. Reward the risk takers Innovation for growth requires a different approach to recognition and reward! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth lessons from the trenches 9. If you must fail, fail quickly Time really does equal money. Avoid pet projects driven by politics and be in the business of killing ideas as soon as possible! 10. Results change culture – communicate! Culture is driven by leadership delivering results. Celebrate success, make heroes of staff who deliver results. ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Growth lessons from the trenches OOOOOPS…almost forgot 11. Search for the hero inside yourself! ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • The world is changing at break-neck speed Change brings boundless opportunities to grow your business in the competitive jungle! Will you grow? ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • Remember, the future should be a matter of choice and not chance… …and growth is too! So… ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • 2013 Innovating for growth Thank you! Michael Vincent Director | Deloitte Consulting (Pty) Ltd ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.
    • “Everything you want is just outside your comfort zone.” Robert Allen ©2013 Deloitte Touche Tohmatsu Limited. All rights reserved.