Strategy is the key to growth

Recent research carried out by  askten.co.uk on the views of leaders of middle-market companies found that strategy and growth were thought to be the most important factors in creating a successful business. More than a third of the respondents ranked these ahead of people, resourcing, regulation and cost-saving.

With the economy improving, it is not surprising that growth is high on the agenda. But it is worrying that 58% of our survey’s respondents said they felt they should be spending more time thinking about the strategic direction of their business. Surely something is going wrong somewhere.

The most likely explanation is a simple one. During busy times it is all too easy for business leaders to get caught up in the day-to-day running of the company.

In fact, according to the survey, they said they were spending a disproportionate amount of time on less strategically important matters. For example, while regulatory matters were seen as the least important in strategic terms, respondents said they were spending more ‘thinking time’ on them than on how to grow their companies.

Companies that want to grow quickly need strong leaders. However, it is crucial to distinguish between leading and managing. The distraction of daily operational tasks can result in management losing sight of strategic direction and missing key growth opportunities.

So finding time to take a step back and see the big picture is important. Company leaders need to be bold enough to seek out the opportunities and take informed risks. It tends to be privately-owned businesses that have the agility to respond quickly to changing market conditions.

William Montgomery is a regular contributor to television and radio on all aspects of leadership excellence. To find how he can help you and your business, please call his office on +44 333 666 1010.