Gone are the days of ruthless downsizing and drastic cost cutting. Today, companies have realized that the best way to make a profit is only through growth: profitable growth. In this book, author Ram Charan provides 10 tools anyone can use to get around obstacles and achieve profitable growth.

These tools are:

1. Revenue growth is everyone’s business, so make it part of everyone’s daily work routine.

2. Hit lots of singles and doubles, not just home runs.

3. Look for good growth and avoid bad growth.

4. Dispel the myths that inhibit both people and
organizations to grow.

5. Turn the idea of ​​productivity upside down
income productivity.

6. Develop and implement a growth budget.

7. Strengthen upstream marketing.

8. Understand how to effectively cross-sell (or value/solutions sell).

9. Create a social engine to accelerate revenue growth.

10. Operationalize innovation by turning ideas into
revenue growth. One of the most critical points discussed
it is the need for a reorientation of thought. The majority
Entrepreneurs and executives think of growth as
“home runs” and most of the time they ignore the “singles
and doubles.” Managers often look forward to the big
breakthrough or great new product inadvertently
that home runs don’t happen everywhere; sometimes,
it won’t even happen in a decade.

Instead of aiming for that big home run, aim for singles and doubles. This is a safer and more consistent path. Of course, it’s important to note that when targeting singles and doubles, home runs shouldn’t be excluded. These singles and doubles come from an in depth analysis of ALL the fundamentals of a business.

Another factor to consider is the difference between
good growth and poor growth. Managers must dispel the myth that growth in any form is victory. Although growth (both good and bad) generates revenue, only good growth not only increases revenue but also improves profits and is sustainable over time.

Poor growth, on the other hand, lower shareholder value.
Reckless mergers and acquisitions are examples of bad growth. Cutting prices to gain market share without cutting costs can also be detrimental to the health of your business.

Here are some questions that can help you diagnose whether or not you are part of a growing business:

1. What percentage of time and emotional energy does the
management team routinely dedicated to revenue growth?

2. Are there only exhortations and does it talk about growth or is it
is there really tracking?

3. Do managers talk about growth only in terms of home runs? Do they understand the importance of singles and doubles for long-term sustained organic growth?

4. How much of each member of the management team’s time is spent making effective visits to clients? Do they do more than listen and seek information and then try to “connect the dots”?

5. Does the management team come into contact with the end user of your product?

6. Are people in the business clear about what the
will be the future sources of revenue growth? Do you know who?
it’s responsible?

7. Would you characterize your company or business unit?
Culture as cost reduction or growth oriented? If the answer is one or the other, you should start doing both. Do people in leadership positions have the skill, guidance, and determination to increase revenue?

8. Does the company practice revenue productivity? it does
Do you think if there are ways to use current resources more effectively to generate more income?

9. How well does your sales force extract intelligence from
customers and other players in the market? how good is it
Is this information communicated and applied by other parts of your organization, such as product development?

10. How good are upstream marketing skills, that is, the ability to segment markets and identify consumer attributes, in your business?

About the Author:

Ram Charan is a co-author of the landmark Fortune article
“Why CEOs Fail” and adviser on corporate governance, CEO succession and strategy implementation. He was named a Top Teacher by Northwestern’s Kellogg School and a Top Rated Executive Educator by Business Week. He is the author of Boards at Work, co-author of Every Business Is a Growth Business, and a frequent contributor to the Harvard Business Review. (6/2000)