Growth - How to create and manage it in your business

1. GROWTH
How to create and manage it in your business
Russell Cummings
Strategic Business Development
April 2015

2. OUTLINE
Why Growth?
Tools for Finding Opportunities
Tools for Managing Growth
Change Success

3. WHY GROWTH?
• Many businesses have
ambitious growth plans
• “If you’re not growing,
you’re standing still...”
• Why? Profits, Brand, Scale,
Ego...

4. FINDING GROWTH
OPPORTUNITIES

5. GROWTH MATRIX
Market
Penetration
Market
Expansion
Product
Expansion
Diversification
MARKETS
Existing New
Existing
New
PRODUCTS

6. GROWTH MATRIX
Market
Penetration
Market
Expansion
Product
Expansion
Diversification
MARKETS
Existing New
Existing
New
PRODUCTS
1
3
2
4

7. ERRC GRID

8. ERRC GRID
By:
• Eliminating
• Reducing
• Raising
• Creating
• How can we transform our products and services?
• How can you modify the Value Proposition?

9. MANAGING GROWTH
Harder than you think

10. CASH FLOW
• Must understand the cash
implications of growth
• Monitor it closely – forecasts
and projections
• Cash Drivers: Sales, Direct
Costs, Overheads, Debtors,
Creditors, Inventory
• Set up simple dashboards
and monitor this closely

11. CAPACITY
• Can we deliver what we’ve
promised?
• Forecast – Scenario Plan
• Look at capacity constraints:
inputs, transport, delivery
timeframes, outputs, people,
lead times, cash.
• Updates
• Sales Pipeline – update and
monitor

12. PERFORMANCE
1. Clear Objectives
2. Set the Key Performance Measures for
each Objective
3. Set the targets
4. Drill down to Business Units and Teams
Example:
1. Objective: Increase Product X sales into China by
20% by December 2015
2. Measures & Targets:
a) China Sales growth - $, units and % (rolling targets)
b) China Sales Margins %
c) China Forward Orders

13. CHANGE SUCCESS
How to boost your probability of success from 30% to
much higher

14. Only 30% of change projects
succeed
Imagine the savings in time,
profit, growth, energy, success if
you could boost that figure to
70%?
PROJECT SUCCESS

15. 100’s of factors that impact on
change success but which ones
have the MOST impact
Great Businesses achieved 16%
higher in change success
compared to Good Businesses
All factors are related /
connected. Change success is
about many adjustments in
many areas
NEW CHANGE SUCCESS MODEL

16. SUMMARY
In Conclusion

18. NEXT SESSION
Our next webinar is at 5:30pm (Sydney time)
on Wednesday, 6 May 2015
and will cover
“Horticulture 2020 Paper – Future Trends for Australian Horticulture”

19. Russell Cummings
Business Consultant
M: 0414 929 585
W: www.sbdbusiness.com.au
E: russell@sbdbusiness.com.au
Thank You