[Reposted with permission. See footnote for reference.]
Each organization is focused on producing products/services using a variety of processes to meet customer demand, while simultaneously increasing profitability or margin. These processes occur in functional areas such as sales and marketing, financial, operations and services. This philosophy is utilized in all sizes of enterprise (large or small) as well as all types of enterprises (commercial or government, private or public).
Every business leader in enterprises both large and small strategizes in the hope of meeting customer demand while retaining and attracting new customers. The expected result: an increase in revenue and profitability, and ultimately, growth.
Is this happening in every enterprise? I am sure the answer is no, and we need to understand why it is not happening.
First, we need to explain enterprise excellence. The enterprise excellence (EE) philosophy is a holistic model for leading an enterprise for total excellence by focusing on the needs of the customer. The model stresses organizational, product and operational, service, and people excellence.
To achieve EE in a global economy, all aspects must work collaboratively. A visionary plan should incorporate people, product, processes, resources, and technology. Customers are very demanding --expecting on-time delivery of quality products/services at low prices.
Enterprise excellence is achieved by developing and executing a sustainable growth strategy to:
Support markets and products growth,
Acquire new business or expand your business,
Improve margins,
Increase revenue and profitability, and
Reduce business cycle time.
Sustainability means "more with less," and this is a challenge not only for business leaders, but for everybody in the world. Every day, each of us should challenge ourselves to be better. At times, that may include redefining what is possible and doing more with less through increased efficiency and effectiveness. To accomplish this, we must rely on the fundamentals that have consistently delivered results, such as productivity improvement, cost reduction, creativity, and maintaining a global presence for market leadership.
Business leaders and associates have to partner in order to focus on the needs of the customer and optimize the existing activities in the process. These processes include safety, quality, productivity, resource development, cost, etc. Businesses must find a balance between passion, people, and patience by studying the facts so as to fully grasp the situation. It is very important for businesses to understand their place as either within a state of sustainability or growth. It requires mutual trust and respect between business leaders, their associates, and most importantly, their customers. Understanding the status of an enterprise is the key for success.
Enterprise growth
Eventually, businesses will come out from sustainability mode and grow, but growth needs planning. What constitutes enterprise growth?
Enterprise growth is an integrated approach affecting every employee and every functional area and strategy within the organization. It relies on transformational change management. It is very different from implementing the firm's business strategies or executing process changes in isolation.
Enterprise growth is concerned with how the enterprise's plans are executing fundamental changes, whether the enterprise is small or large, and private or public. These changes may involve new or changed relationships to markets/customers or constituencies or different/new product and service offerings, and competitive pressures to reduce prices, increase quality, and improve services. [..] The growth concept is not a new phenomenon; however, it is new and unusual for various industries in global competition to plan and execute such a complex and multidisciplinary problem area.
Enterprise growth calls for more than a superficial change. These changes can be in response to marketplace events or to address underperformance, but enterprise growth is quite different from a company's turnaround in financial difficulties. It will inevitably be the biggest single internal program that any enterprise undertakes. It is expected to disrupt the existing business model. Several questions that have to be answered during development and execution of enterprise growth [are]:
What must the enterprise do to grow?
What do leaders transform?
What product, market, and/or service do they need to grow?
What are the vital signs that growth is underway?
Enterprise growth is a C-level (CEO, CFO, business president, etc.) leadership initiative towards corporate growth and/or renewal, constituting a range of competitive strategies impacting the key elements of an enterprise, thus resulting in a sustainable competitive advantage.
The above definition includes, but is not limited to, leadership participation and the objective of attaining:
Substantial process improvements,
Solution/product/service growth,
Competitive advantage,
Financial benefits, and
Sustainability and growth of market leadership through a process of renewal and revitalization.
The execution of these strategies is to bring about transformational results. [..] The following are key characteristics where enterprise growth is the best strategy:
When C-level and executive leadership are required to be involved,
Where primary aspects of the enterprise are usually impacted,
When the basis of enterprise competition has changed,
When overall performance needs to be enhanced, renewed, and sustained with leadership in the marketplace, and
When a drastic increase in market share and/or market responsiveness is required.
Growth strategy goals tend to significantly differentiate initiatives. The approach, and the resources utilized for business growth, relates to both the goal pursued and the nature and competencies of the enterprise.
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