I have taken a few months off from blogging to work on a book that will be published early summer called The Breakaway Move, Entrepreneurs’ Playbook on Crushing the Competition. After 23 years of entrepreneurial experience, founding several companies, and most recently serving as a business growth coach with hundreds of strategy/execution planning sessions under my belt, I have finally figured out the three main reasons why growth initiatives fail – and what to do about it.
Reason Number One: Not having the right kind of energy within the team that’s responsible and accountable to generate the desired result. What do I mean by this? I’m talking about not having clearly defined Core Values, Core Purpose, and the overarching Epic Win (10-year goal), as well as making sure the growth initiative accelerates the achievement of these principals. Understanding why, other than money and profit, you’re in business goes a long way in getting the team behind a project. Having the team emotionally connect to the project will help them navigate the inevitable setbacks along the way. Choosing projects that excite the team is powerful. How do they benefit personally?
Reason Number Two: The team underestimates how much time it will take to generate results. This can be within the management team, in how long departments actually need to meet their goals, or how long it takes vendors and partners to follow through. And for most entrepreneurial companies, it can mean not getting outside help soon enough to accelerate the learning required to drive results. Plus, an unhealthy team that operates without real trust does not get stuff done as fast as a team that trusts each other. These are below-the-waterline, team-related issues (that nobody talks about), but slow down everything.
Reason Number Three: Anything that takes team energy and time must generate a profit or it’s not worth doing. Just driving revenue is not a good idea, given our current economic stage. The challenge is money/profit usually becomes the number one driver for a growth initiative, and energy and time are second thought. And this is why things fail. The CEO (plus maybe someone else) was behind an idea, but everyone else (secretly) was not connected to it and (secretly) hoped this would just be another failed attempt at change. Companies like GE that have a formalized process to take projects to the Board of Directors for clearance don’t really have to worry about energy so much. But entrepreneurial growth companies absolutely do.
Starting a growth initiative often means you have some tough decisions to make. Say you’re trying to decide between opening a new office in a new market vs. combining two current products into something innovative and new. Assuming both will generate about the same financial results with great execution, which one gets the team excited? Which one gets you closer to your company’s Epic Win? What would be a Crushing Move on your competitors? Which one would just be really cool if you could do it? Which one would your team learn and grow from the most on a personal level? Professional level? Get the point? You can feel the energy build around the right choice by the questions alone.
Set a weekly or monthly cadence with your team NOW and start working through what projects or ideas are worth pursuing and start separating yourself from the pack … create your Breakaway Move!