In recent conversations, I have learnt how many of our corporates are responding to economic conditions and sustained pressure on household spending. I often come away from these conversations feeling pretty disheartened by the lack of ambition and “sameness” to their strategy. More often than not, it includes some form of cost cutting and a reshuffling of the deck chairs. But fundamentally they are left with the same problems and are likely to be staring down a new round of cost cutting in another years' time. Perhaps worse, they are no closer to repositioning the company to capture growth when the economy inevitably begins its next expansion.

Is the role of strategy to buy us another year? Not in my opinion.

Corporates continue to revert to what they know, rather than what will work. This form of preservation rarely works in the long term and while challenging conditions make for a good excuse, I believe our role is not to blame external issues but to find a way around them.

That’s where growth strategy comes in.

From my experience growth strategy requires three key ingredients to have a lasting impact which extends beyond one-year cycles. It is not just about the numbers, but also the narrative which creates a flywheel and an enduring system that re-tools and reinvigorates companies.

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Strategy that is POWERFUL.

A fundamental aspect of any growth strategy is to generate commercial impact; however, typical approaches to strategy development often leave this to chance by relying on a top-down method rather than focusing on the core performance drivers of a business through unit economics.

In my experience, I have yet to encounter a business that doesn't exhibit a range of products and activities, varying from low to high return on investment.

Crucial to commercial impact is not only categorising products and activities but introducing enduring systems and operating models that will take investment from low value activity and divert it into high value activity. This is what I refer to as ‘re-tooling’ for growth.

There are two critical benefits of this approach. Firstly, it makes the commercial outcome much more certain as it works from the unit level up, prioritising profitable growth over top line growth. Secondly, it is self-funding and leverages an existing cost base within the business.

I personally, don’t believe the thesis of ‘invest to grow’ is always true. In fact, I believe that the starting point should be a systematic approach to re-tooling and evidence-based decision making only once the existing cost base is fully optimised.

I understand that this may appear simple as an academic exercise, but it is very difficult in practice. So difficult in fact, that most strategies avoid this level of rigor. In saying that, I believe this is how genuine transformation starts - through a relentless recalibration of the products and services a company offers.

Part of this re-tooling process should be difficult decisions on stopping (or automating) low ROI activity and diverting that investment into innovation (I will soon write about industrialising innovation) to support growth through new and evolved products.

Another observation (and concern) I have is that corporations seem focused on responding to conditions by promoting a new value proposition without actually revising their value proposition. Put another way, promoting a new value proposition with the same mix of products and services. The issue with this approach is that they spend millions of dollars in marketing, but they haven't yet optimised their business to best meet customer needs, which in turn drives growth.

In this scenario marketing is not a creative solution; it is wasteful one.

It is essential to establish the strategy correctly from the outset. Identify efficiencies and redirect resources toward higher ROI and innovation. Next, reorganise operations to develop systems and service levels that ensure the longevity of these processes. Finally, invest in marketing to reposition the brand in the market and attract new audiences.

Ultimately, I am convinced that strategic creativity emerges from the collective synergy of various elements, rather than relying on isolated initiatives to spur growth. This involves integrating multiple 'growth modes' into a cohesive strategy that is both complementary and additive.

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Strategy that is INTUITIVE.

Achieving transformational growth is rarely a quick process; it requires years of dedication and persistence. Additionally, it requires the collaboration of many – every division, team, and individual plays a crucial role. Aligned with the principles of unit economics, the most effective implementation occurs when everyone understands it and can easily apply it to their specific responsibilities.

During my corporate experience, I have encountered numerous instances where communication is overcomplicated through excessive intellectualisation.

For goodness' sake, make it simple.

This isn't due to any underestimation of our people; rather, it's about creating a narrative that can withstand the time needed for genuine business transformation and sustainable growth. This narrative should be easily articulated by anyone in the organisation without the risk of inaccuracies or misinterpretations.

If a strategy can only be conveyed by an executive during a town hall meeting, it is too complex and unlikely to survive the duration needed to achieve its desired results.

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Strategy that is GALVANISING.

While strategy can be both powerful and intuitive, it is essential to have a galvanizing force that activates the business and gives meaning to the company's purpose.

Numerous studies examine what fosters high-performing cultures, consistently arriving at the same conclusion: reward and discomfort performance systems may drive short-term results, but purpose has lasting impact.

Connecting strategy to a greater purpose inspires teams and brings fulfillment when an organisation achieves success.

This aspect of strategy is often overlooked, as it demands a profound and intrinsic understanding of the company and what inspires its employees. The simple response is money, but the more impactful answer is purpose.