Growth strategy
How to sustain profitable growth
Many CEOs find growth the toughest challenge they have to face. Of course, revenue and even profit growth can easily be created by acquisition but, as many studies have shown, the majority of acquisitions destroy shareholder value - simply going on the acquisition trail is no panacea. Unfortunately, organic growth, though often value-creating when it can be achieved, is usually difficult to drive and sustain.
How then can an ambitious CEO drive, let alone sustain value-creating growth?
Our research has consistently shown that companies which make a sharp distinction between good growth and bad growth (ie between growth which increases the size of the business at the cost of long-term shareholder value and growth which increases shareholder value) perform far more strongly, because this distinction leads them to a different series of steps, each of which is in itself value-creating, and which taken together lead to sustainable growth. This path, described fully in the book The Complete CEO consists of three key steps:
- Step 1: Deposit the baggage -- understand which parts of your business have the potential to create value in the future, and get rid of the rest
- Step 2: Ensure that your business is strategically defensible -- validate your competitive advantage and the long-term attractiveness of the market and reshape the portfolio, and the businesses within it, accordingly
- Step 3: Exploit the competitive advantage that step 2 has created as the key driver of both acquisitive and organic growth.
PA helps companies take each of these steps by bringing a combination of strategic rigour, business and technological innovation and the ability to drive major change through the business.
Our track record
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