Profitable Growth Is Everyones Business - A Book Summary
The days of ruthless downsizing and drastic cost cutting are long gone. Nowadays, companies have realized that the best way to earn profit is only through growth - profitable growth. In this book, author Ram Charan provides 10 tools anyone can use to hurdle obstacles and achieve profitable growth.
These tools are:
1. Revenue growth is everyone's business, so make it part of everyone's daily work routine.
2. Hit many singles and doubles, not just home runs.
3. Seek good growth and avoid bad growth.
4. Dispel the myths that inhibit both people and
organizations from growing.
5. Turn the idea of productivity on its head by increasing
6. Develop and implement a growth budget.
7. Beef up upstream marketing.
8. Understand how to do effective cross-selling (or value/solutions selling).
9. Create a social engine to accelerate revenue growth.
10. Operationalize innovation by converting ideas into
revenue growth. One of the most critical points discussed
is the need for re-orientation of thinking. Most
businessmen and executives think about growth as
"home-runs" and more often than not disregard the "singles
and doubles". Managers often look forward to the big
breakthrough or the grand new product without realizing
that home runs don't happen everywhere - sometimes, they
don't even happen in a decade.
Instead of aiming for that one grand home run, aim for singles and doubles. This is a surer and more consistent path. Of course, it is important to note that while aiming for singles and doubles, one should not exclude home runs. These singles and doubles come from an in-depth analysis of ALL the fundamentals of a business.
Another factor to be considered is the difference between
good growth and bad growth. Managers should dispel the myth that growth in whatever form is a victory. Although growth (both good and bad) builds revenue, only good growth increases not only revenues but also improves profits and is sustainable over time.
Bad growth, on the other hand, lowers shareholder value.
Unwise mergers and acquisitions are examples of bad growth. Price cutting to gain market share without cutting costs can also be detrimental to your company's health.
Here are some questions that can help you diagnose whether or not you are part of a growth business:
1. What percentage of time and emotional energy does the
management team routinely devote to revenue growth?
2. Are there just exhortations and talk about growth or is
there actually follow through?
3. Do managers talk about growth only in terms of home runs? Do they understand the importance of singles and doubles for long-term, sustained organic growth?
4. How much of each management team member's time is devoted to making effective visits with customers? Do they do more than listen and probe for information and then try to "connect the dots"?
5. Does the management team come into contact with the final user of your product?
6. Are people in the business clear about what the specific
future sources of revenue growth will be? Do they know who
7. Would you characterize your company or business unit's
culture as cost cutting or growth oriented? If the answer is one or another you need to start doing both. Do people in leadership positions have the skill, orientation, and determination to grow revenues?
8. Does the company practice revenue productivity? Does it
think through whether there are ways to more effectively use current resources to generate higher revenues?
9. How well does your sales force extract intelligence from
customers and other players in the marketplace? How well is
this information communicated and acted on by other parts of your organization, such as product development?
10. How good are the upstream marketing skills- that is, the ability to segment markets and identify consumer attributes- in your business?
About the Author:
Ram Charan is coauthor of the landmark Fortune article
"Why CEOs Fail" and an adviser on corporate governance, CEO succession, and strategy implementation. He was named as Best Teacher by Northwestern's Kellogg School and as a top-rated executive educator by Business Week. He is author of Boards at Work, coauthor of Every Business Is a Growth Business, and a frequent contributor to Harvard Business Review. (6/2000)
By: Regine P. Azurin and Yvette Pantilla
Regine Azurin is the President of BusinessSummaries.com, a
company that provides business book summaries of the latest
bestsellers for busy executives and entrepreneurs.
"A Lot Of Great Books....Too Little Time To Read"
Free Book Summaries Of Latest Bestsellers for Busy
Executives and Entrepreneurs
BusinessSummaries is a BusinessSummaries.com service.
(c) Copyright 2001- 2005 ,BusinessSummaries.com - Wisdom In A Nutshell
A number of publishers, most of them university presses, are taking Target Corporation to task for redacting certain key words in the product descriptions of their books. They say the Minneapolis-based chain retailer has scrubbed certain words from their descriptions, including "transgender," "queer," and even the term "Nazi."
In celebration of its 150th anniversary year, across the USA groups are holding Little Women-themed exhibits, conferences and lectures. Penguin Classics recently published a fetching new annotated edition, with a foreword by the singer/writer Patti Smith, one of the book's vast army of admirers... A new film is in the works, directed by Greta Gerwig and starring Emma Watson, Meryl Streep, Timothée Chalamet, Saoirse Ronan and Laura Dern, right on the heels of a BBC mini-series last year.
Across the capital and around the country, booksellers reported brisk sales of Bob Woodward's Fear on its first day on the shelves. The title now has 1 million copies in print, according to its publisher, Simon & Schuster, which added that a total of 750,000 copies were sold through the day of publication alone. (The combined sales figure includes pre-orders and first day sales of print books, e-books, and audiobooks in all formats.)
The Barnes & Noble roller-coaster ride continued last Friday, when the company's stock, which had dropped 8% the day before after another disappointing quarterly report, jumped 16.5%, to $5.30, on more than triple the usual volume. The cause: several pieces of news that suggested the company could be the subject of a takeover offer.
UK bookstore chain Waterstones is buying the 115 year-old family-owned chain Foyles, saying the deal will help to "champion" real bookshops in the face of online rivals.
The sale includes Foyles' well-known Charing Cross Road store in central London, which was relocated to larger premises in 2014.
Neil Gaiman and Haruki Murakami have been shortlisted for a substitute Nobel literature prize, created by cultural figures in Sweden after the Academy, rocked by a sexual assault scandal, was forced to postpone the awarding of 2018's prize.
The New Academy Prize was established, "to warrant that an international literary prize will be awarded in 2018, but also as a reminder that literature should be associated with democracy, openness, empathy and respect," the organisers said.
With 'bookstagramming' becoming a force in marketing, are designers making covers more colourful, bolder and cleaner, to stand out on our screens?...
A rare books dealer thought he had gotten lucky in 2013 when he managed to acquire a 1787 French first edition inscribed by Thomas Jefferson when he was ambassador to France...
He had no idea that his seeming good fortune was a byproduct of one of the most expansive rare book thefts in history.
The dealer at a book fair who sold it to him, John Schulman, is now accused of conspiring with a library archivist, Gregory Priore, to steal and sell rare items from the Carnegie Library of Pittsburgh.
In a lawsuit filed August 28 in the U.S. District Court for the Southern District of New York, former Barnes & Noble CEO Demos Parneros has charged the retailer with breach of contract and defamation of character. The suit contains numerous unflattering revelations about the inner workings of B&N, and includes the bombshell news that a deal to sell the company to another "book retailer" fell through in June.
Netflix has entered into a multi-year exclusive overall deal with international bestselling author Harlan Coben. As part of the deal, Netflix will work with Coben to develop 14 existing titles and future projects, including his upcoming novel Run Away, into English language and foreign language series, as well as films, to premiere on Netflix around the world. Coben will serve as an executive producer on all projects.