High-growth companies discover their opportunities differently. They certainly use strategic planning and analytics, as do most of their competitors. But at their core, they do something else.
Babson Executive Education asked companies their top method to find revenue or cost savings opportunities, then compared that to their growth rates. Whereas low-growth companies tended to favor analytics or strategic planning, over half of high-growth companies focused on experimentation, as shown in the chart on the right.
High-growth companies understand that they can spend endless time debating the latest market research and its implications. They can get teams together for strategic planning off-sites. Or they can leverage the power of their people to quickly experiment to find the best opportunities. Market research and planning are important. But it is the action implicit in experimentation that drives growth. By moving to a culture of experimentation, you can be in your third iteration of an idea before your plodding competitors move the idea out of their planning processes. Read more