Overcoming Barriers to Growth to Improve Business Valuation

Buyers and investors in companies are buying or investing in the potential for future growth. They assess the organization for predictability of future earnings as part of their business valuation.

Ensuring the future becomes reality results not only from keen insight and excellence in execution, but also from overcoming any barriers to growth. Essential actions to overcome the barriers to growth include:

  • Aligning the organization to the plan
  • Reducing team dysfunction
  • Defining competencies  and  behaviors critical to the strategy

Companies that achieve their growths goals establish  processes  and  practices  that  embed each  of  these  actions  into  the  day  to  day activities of the organization.

Aligning the organization to the plan

Alert presidents & CEO’s know that an organization may agree with and understand a  strategic  plan  but  still  not  be  aligned  to  it. There may be significant engagement with the need   for   the   strategies   and   actions,   while unspoken  concern  exists as to the path  to the goal,  the  timing,  and  the  roles  and responsibilities of those charged with execution.

Alignment requires “adjustment of parts in relation  to each other”. It is not uncommon for the strategic planning process to unconsciously limit input, minimize visibility of ideas and fail to resolve differences within the management team. These situations prevent development of the best tactics and priorities for the business and create risk that the management team does not agree on the actions, roles, and responsibilities. The plan may sit on a shelf.

Achieving  an  actionable  plan  and  an  aligned team requires participation that is broad but efficient; collaboration  and  consensus  created by building on the best elements from many perspectives, experiences and capabilities, and agreement achieved through debate, dialog and resolution of differences.   Incorporating these elements  provides  tactics  and  targets representing the best  thinking  of the business, and agreement around the goals, path, actions, and  responsibilities.