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Getting to Growth

What’s Getting in The Way of Your Company’s Growth?

There are many common pitfalls companies face as they develop New Growth Platforms. NextVista can help your organization tackle and surmount these and other strategic, financial, organization and executional challenges.

Common Pitfalls on the Road to Growth

  • Unclear strategy or priorities
    • Focus on short-term financial performance, rather than long-term economic value
    • Lack of compelling growth vision and game plan
    • Many small, sustaining innovations; too few potentially transformative new platforms
    • Emphasis on technology rather than the customer, value proposition and business model
  • Underestimating the importance and challenges, leading to insufficient financial investment
    • DCF/NPV calculations relative to an assumed flat base case rather than more likely decay
    • Fear of a risk/return profile higher than sustaining innovations in the core
    • Budgets shoehorned into the annual budgeting process; P&L vs. balance sheet dollars
    • Mismatched financial incentives
    • Requiring that teams “earn the right to grow” vs. recognizing the need to grow and finding a way to make it happen
  • Incomplete or inexperienced project teams
    • Part-time teams with broad, thin support; few real “business builders”
    • Inexperienced, part-time leader
    • Wrong or missing competencies; limited diversity
  • Managing New Growth Platforms too much like the mature core business
    • Focus on process/metrics rather than people, exploration, experimentation and learning
    • Predisposition toward “quick wins”
    • Analysis paralysis—trying to measure markets that don’t exist
    • Inward facing instead of outward leaning
    • Shoehorning major growth initiatives into the annual budgeting process
    • Rewarding results rather than rewarding the approach and the learning; punishing risk takers
  • Managing New Growth Platforms too close to the core
    • Urge to manage NGP’s within mature core business units
    • Misunderstanding of key capabilities; unwillingness to build new skills as needed
    • Incremental mindset—emphasis on exploiting existing assets/models; failure to account for fixed costs
  • Organizational resistance
    • Inability to leverage and borrow core business capabilities
    • Weak support from core business units, or even passive aggressive sabotage
    • Fearing core business cannibalization
  • Weak executive level support
    • Limited or unbalanced portfolio of potentially transformative initiatives
    • Insufficient resources, not dedicated and protected; fights for funding
    • Responsibility delegated to core units rather than being an explicit corporate priority

Next: Why Innovation Matters →