There is depth and detail in our Growth Predictor Index™ model.
But let’s cut to the chase – there are 3 key pieces of insight.
Growth Capability is the bedrock of current and future performance.
If it’s strong, it provides the platform for future success.
If it’s weak, it’s undermining your business now and will do so at every step as you try to move forward, acting as a continual brake.
You can push the accelerator as hard as you like, but if you keep your foot on the brake, progress will be inhibited.
How good is your Growth Capability today? How do you know? Do you measure it? Take a guess……
If you had to choose a number between 1 and 10 that defined how confident you are about your current business delivering its operational plan next year, what would that be?
A major risk for companies is overestimating the strength of their Growth Capability. Why? Companies don’t measure Growth Capability, which in itself is a weakness. As Sir John Harvey-Jones, ex-ICI CEO & business turnaround specialist said: “The fantastic thing about not having a measure is that failure comes as a complete surprise!”
We see companies consistently overestimating the strength of their Growth Capability – sometimes by a significant margin. On a scale of 1-10, where 10 is high, we’ve seen leaders scoring themselves at 8 versus a measured score of just over 5.
Now this shouldn’t be a surprise – where companies are asked to rank the quality of their customer loyalty or experience, or where they’re asked how well engaged their employees are, they always rate themselves higher (sometimes way higher) than the hard data.
For now, let’s just accept there’s going to be a gap. What matters is the extent of the gap and the commercial implications of that.
The gap between Assumed Growth Capability & Measured Growth Capability we call “The Danger Zone” – it represents an opportunity and a threat for any company.
What’s the opportunity? Growth Capability underpins current and future performance, so the lower the score, the greater the unrealised revenue and profit. That’s money being left on the table.
And the threat? The greater the gap, the higher the level of risk in areas where the business is weak and the greater the potential for those risks to degrade performance and value. That’s like leaving a financial tap running and watching revenue and profit drain away.
So measuring GC accurately is important.
A question: Wouldn’t you like to know the extent of the gap within your business and the commercial impact on your growth potential?
Using the Benchmark Index score, companies can calculate the growth potential of their business,
based on the extent to which they improve their Index score.
This uses data the company already has, plus the measured Benchmark Index.
It predicts the financial impact of the company boosting its Index score.
For any target future Index score, the calculation then reveals the predicted uplift in sales revenue if this was achieved.