Useful Suggestions for CEO
There are some useful suggestions in this article “How the growth outliers do it”. This article talks about the successful outliers working in different business like pharmaceutical industry, construction industry, banking etc. and achieving the steady growth from almost 10 years. This article includes the common traits of growing outliers and talk’s about how they are achieving growth while working in their particular industry. The researcher of this article explained that there are some factors that do not explain the steady growth or outliers and these factors are; position of the industry, no dominant geographical region or position, firm’s age, emerging economy vs. developing economy etc.
To achieve the steady growth, outliers do various experiments, spend money on research, and bring in innovation. They try to implement and install new technologies, they try to move into new markets, conduct research on new business models and sometime they organize new industry for a business. There are some important steps that they follow and are useful for your organization. It will help you to use the strategies and achieve steady growth.
Firstly, the growth outlier do is; they try to enter the market earlier as compared to their competitors, they try to find out opportunities earlier than their competitors do. For this, they do small investment in their business and do necessary researches. Article explains this concept with the help of HDFC bank of India. They find out opportunity earlier than their competitor did and became the first bank by launching International debit card in 2001. Another important point, which is discussed, is, they always ready to take high risks on getting an opportunity. Some outliers try to start new business that does not belong to their core business for example; yahoo from Japan diversified their business by offering new services and new segments.
Some outliers by enhancing their capabilities or building new capabilities try to enter new markets. This strategy helps them, to achieve the high profit. An example is give in this article that is, Indra in 2001, enhances their capabilities to expand their business geographically so in 2002 Indra accessed CPC-IS IT company of Portuguese etc. Most important factor that outlier consider is handling of input resources. They have knowledge to use their resources so that they can achieve the goal effectively and efficiently. Outliers have policies and plans that make them to have processes that support speed and flexibility. They allocate their resources, develop plans to adopt and respond towards the changing environment.
You can improve your business to bring in continuous improvement in the processes. Technology is growing day b day, and changing the environment of the business. Outliers try to bring new technology so that they can bring in innovation in their products and services and can achieve the competitive advantage. They try to improve the material, processes, marketing strategies and communication with their employees. They try to implement strategies that help them to find out opportunities and use the resources in a way that results in effective and efficient outcome. With the help of effective and well-educated management, a company can handle the situations in a more effective manner. Outliers are now focusing on improving the culture of the organization, to improve their values and to have fair practices in the organization. For this purpose, outlier spends money in doing research and investment so that they can have a good corporate culture. They also implement plans for the training of employees, strategies for the employee development for example; Global Education System is a worldwide corporate education company and can train almost 14,00 students at a time.
There are some other important steps and factors that help you can follow to have a successful business, with the help of avoiding the dramatic divestitures, by having the hold on your talent and to have reliable customer base etc. As a CEO, you can improve your business and can become of the outliers that have steady and stable growth. I have listed suggestion in this memo and I would like you to consider these suggestions to improve your business. Please let me know if you have any question.
You may also read: