Growth is the most important driver for an organisation's value but creating value with growth can be challenging. A systematic approach to growth can be beneficial from a financial, organisational and skills point of view.

1. How to manage
growth?
1

2. How to manage growth?
The case for organic growth
Riccardo Siciliani2
How to confidently walk towards growth?
How to manage growth?
Growth is inevitable as shareholders expect predictable growth without risk. And it is
possible in nearly every industry.
But it is also dangerous. Growth requires a venture capital type investment philosophy.

3. How to manage growth?
Barriers to organic growth
“Reach” at the expense of power
Lack of realism about competitive dynamics, customer groups, and
ability to execute well
Organization “trapped” in static and conventional view of market
Marketing tactics not founded on deep understanding of specific
customer behaviors
- Not focused on behaviors that generate maximum growth
- Missing key “barriers” and “drivers”
Reliance on separate pools of data
– E.g. sales vs. marketing vs. finance vs. product development
Structure, capabilities, incentives block effective execution
– Low integration across departments – from offer development,
through marketing, all the way to channel, sales and service
Failure to
understand
customer and
environment
Disconnected ideas
within the
organization
Desire to address all
opportunities
simultaneously
Riccardo Siciliani3

4. How to manage growth?
Overcoming barriers to growth
Organisations need to…
Riccardo Siciliani4
Identify a specific customer
behavior to change
Prioritize and sequence distinct
opportunities to pursue
Be clear about what constitutes value for all
customers and the drivers and barriers to
extracting the value
Conduct precise and disproportionate
investments
Have integration from insight to action: downstream
marketing decisions need to be driven by and directly
linked to behavior change choices
Build organizational understanding and alignment on how to
unlock opportunities

5. How to manage growth?
Drivers of organic growth
Profitable growth = (Price — Unit cost) x Volume
You can increase net margin
realization by driving customers to
acknowledge greater value and
aligning costs with value created
Or, you can drive net unit growth by
driving more customers to purchase at
any given price
A company can control and accelerate its growth rate only if it knows the specific
customer / consumer behaviors it wants to change
Riccardo Siciliani5

6. How to manage growth?
Drivers of organic volume growth
Riccardo Siciliani
There are limited number of “behaviour modifications” that create volume growth
Increase
volume with
existing
customers
Improve
retention
Create
new
users
Stimulate
current
uses
Acquire new
customers
Customers
of other
companies
Non-users
of product
/ service
6

7. How to manage growth?
A systematic approach to accelerate growth
Where to Play How to Win
How to position
product / brand
relative to
competition?
What do
segments do
and why do
they do it?
How to
effectively
activate
customers?
What growth
opportunities
exist and what
customer
behaviors to
drive?
1
How to frame
the market into
actionable and
meaningful
segments?
2 3 4 5
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behavioralobjective)
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Objecctiveet(eachaudience/targetsegment)bydriving (eachaudience/segmentbehavioralobjective)
Expected
Results
Phase I will take __________ (time)and
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behaviors)
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communication vehicles) for
(lengthoftime) and
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distribution channel, pricing,
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For 30-40 year old professionalworkmen
<Target Audience>
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<Positioning>
which
– is safetowear inany work setting
– will last a longtime(getyour money’s worth)
– communicates masculinity andbeingserious about your job
<Consumer Benefits>
because
– it has all the features necessary for industrial work (e.g. steel toe)
– it is available in serious work outlets (e.g. Work n Gear)
– it is made of the “best” materials and has good craftsmanship
<Reason to Believe>
Drivers
Barriers
Buying
Process
Market
Segmentation
Customer
Picture
Positioning
Statement
Action Plan
Riccardo Siciliani7
Shorter version of the framework developed by Roger Martin and A.G. Lafley, former Chairman, President,
and CEO of Procter & Gamble, in their book titled Playing to Win: How Strategy Really Works

8. How to manage growth?
A systematic approach to accelerate growth
Market
Segmentation
. . . reveals groups
of customers
exhibiting different
propensities with
respect to the
behavioral
objective, allowing
to choose target
segments,
which . . .
Customer
Picture
. . . each have
distinct
drivers and
barriers to
the behavioral
objective,
which . . .
Drivers
Barriers
Buying
Process
Behavioral objective
allows you to focus
on the greatest
opportunity and
choose variables of
an effective
segmentation
frame, which . . .
. . . allow
you to
choose
benefits
that will
activate the
behavioral
objective,
which . . .
. . . drives
your
positioning,
which is the
basis for…
For30-40 yearold professionalworkmen
<TargetAudience>
ClientBrandis the rugged,durable,no-nonsensebrand
<Positioning>
which
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– will lasta long time (getyourmoney’sworth)
– communicatesmasculinityandbeing serious aboutyour job
<Consumer Benefits>
because
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Positioning
Statement
Action
Plan
. . . an
integrated
set of
messages
and
activities –
where and
how to most
effectively
change
customer
behavior
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<Repeat for additional Phases of marketing strategy>
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ŸPrint–Health&
Fitness
ŸChangein
labelingquantifyfor
supermarket,
healthfood
channels
ŸEventsponsorships
ŸMediafocusedon
sustaineduse
ŸMembership club
rewardingbenefits
ŸGoingtowork
ŸAthomeleisure
time(big
ŸHome–drivereflection
ŸOffice–reminder of
need
benefits
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drive
trial
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datato
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Ÿ
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priority because
(rationale: size,
strategic goals,
etc.).
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characterized by
(purchase &
usage envi., desired
experience, beliefs &
associations, behaviors)
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(key barriers)
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Ÿ This implies balancing messages and spend
(allocation across stages)
MaarrkeettiingLLeevveerrs
Phase I Emphasis PhaseII Emphasis
Ÿ For eachshift, list
SuSummaryy ooff Ÿ Shift brand beliefs & Ÿ Drive trial Ÿ Drive
sustained usage prioritized messages
(themes) andspecificŸOverall performanceŸ Superioringredientsand Ÿ Strengthenimmunesystem andlevers –promotionalpriceŸ Know ledgethatyouaredoingsomethinggoodforyourself
vehicles,distribution
WWhhenen toto RReeachach channel, pricing,TVwatcher) Gym Gym –reinforcesbeliefs
offering/ product
ŸHealthclubsamplesofusage
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ŸRevisedpackagesize/
For this target customer, move
from xxx toyyy
For this target customer, move
from xxx toyyy
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How to WinWhere to Play
Riccardo Siciliani8

9. How to manage growth?
Challenges in the process
Ÿ Differentiating
Ÿ Sustainable
= Genuine InsightGood Data
Ÿ Reliable
Ÿ Valid
Ÿ Comprehensive
Ÿ Precise
+ Good Dialogue
Ÿ Right questions
Ÿ Balance advocacy /
inquiry
Ÿ Directed to options
with explicit trade-
offs
Great Choices
Hard to organise the right data to be
at the right place at the right time
Riccardo Siciliani9
Hard to reconcile different opinions about
“What are the right questions?”, “What are
the realistic / best options?”
Hard to recognize the difference between
good data and genuine insight
Ÿ Actionable
Ÿ Inspiring
Hard to know when a good
choice is no longer good due to
a change in the competitive
situation

10. How to manage growth?
The benefits of having a systematic approach to growth
Financial
Significant, sustainable increase in the rate of organic growth
– Realizable in near term
Greater growth with increased profitability with no trade-off between
growing top and bottom lines
– Achieve higher yield spending (e.g., get more with same budget)
Organisational
Higher P/E multiple than if acquiring growth
AND
Higher probability of successful and faster implementation and reduction of
internal barriers to growth
Recognition or validation of direct clients’ leadership and accomplishment
AND
Capability
Higher performing marketers and marketing teams
Improved and stronger marketing organization capabilities and assets
Riccardo Siciliani10

11. How to manage growth?
Principles of insight based growth strategy
Riccardo Siciliani11
Defining a growth strategy is about
changing the behaviour of your
customers, your competitors and other
influencers
You need to achieve a deep and precise
understanding of what drives customer
behavior, which is captured in a way
which is simple and practical to
understand
The essential elements of a growth
strategy are the hundreds of choices
about whether, when, how, and how
often, to influence behavior. These can
be simply described as “Where to Play”
and “How to Win”
The tools and maps you use to support
these choices must strike a difficult but
essential balance between rigor (e.g.
reliable, valid, comprehensive data) and
actionability (implementable based on
company capabilities)
The most practical and effective way to improve judgement and actionability around strategy
choices is to start from how choices are made today
1 2
3 4

12. THANK YOU!
12