Overcoming Barriers to Growth to Improve Business Valuation (P4)

Part 4 – Overcoming Barriers to Growth to Improve Business Valuation

Maximizing the business valuation involves improving the management team performance when it comes to planning and executing the strategic plan.  The valuation of the business by buyers and investors such as private equity depends on how well the president or CEO has addressed the issues such as these disconnects between strategy and performance.

These  disconnects  must  be  analyzed  for  root cause and a plan developed to shape and nurture the individual and organizational behaviors needed for the growth strategy to succeed. Diagnostic tools such as the DiSC®  personal profile system, team C.A.R.E. profile, and a listening profile can accelerate identification of the gaps between management’s current competencies and behaviors and those required by the strategic plan.

Once  the  strategic  behaviors  needed  to implement the strategic plan are developed and communicated, and the differences from current behaviors are identified, the management team must put a process in place that sustains meaningful behavior alignment and continually seeks to improve performance.

One tool in that process can be 360 º Feedback.

360º Feedback provides input to individuals on the behaviors they exhibit with subordinates, peers,  and  superiors  in  customized  categories that  are  critical  to  the  organization’s  success. This feedback can be used to develop individual goals and action plans to improve individual and organizational effectiveness. On going use of the

360º Feedback process permits monitoring of individual and group progress over time. As the feedback categories are linked to organization success factors, 360º Feedback strengthens organizational, as well as individual capabilities.

Organizations that incorporate behavioral change opportunities into their growth strategies can realize substantial bottom line benefits if they effectively define expectations and communicate them throughout the organization.   By aligning behaviors  with  their  strategic  goals  in  a continuous improvement process, the company has  the  opportunity  to  gain  significant sustainable strategic advantage over its competitors.

Achieving the Growth Imperative

Experienced leaders understand growth is essential to add value, provide opportunities, and ensure  the  future.  While  appropriate  attention will  be  paid  to identifying new markets, products, and services, and must be paid to execution of the plan, eliminating barriers to growth and preventing re-occurrence is a critical responsibility of leadership.