Growth. It’s out there somewhere. Or so many executives believe. The reality is that only about one quarter of growth opportunities fall outside a company’s scope, while on the other hand, internal factors for which organizations have absolute control make up the greater majority of prospects for growth.

For leaders, it’s nice to know that achieving and sustaining growth requires going no further than their own backyards. Still, exploiting their companies’ potential is an active challenge, one that takes more than good intentions and great opportunities. It takes the ability to build and preserve some fundamental business practices.

An inside job

The most basic requirement for growth is to simply plan for it. Organizations with growth track records can point to a targeted growth strategy outlined within their formal business plans. Such plans should encompass all parts of the company, from the ground up, and reflect every business cycle or circumstance.

But even organizations that have sound plans and face great opportunities can miss out if they lack the internal ability to make growth happen. That’s why execution is so critical and why strong leadership is key.

Rigor at the rudimentary levels

Growth starts with the basics. Executives must first ensure that the fundamentals of their operations are securely in place and that ongoing improvements are constantly being pursued. This means shoring up every facet of operations—product quality, supply chain, customer service, pricing structures, even purchasing decisions—and implementing continuous improvement strategies. Is there a lack of managerial expertise or gaps in competence within the organization? Is technology and technology planning adequate? Would strategic sourcing in certain areas of operations make more sense?

For most leaders, implementing growth through better operations is the most straightforward of their responsibilities, and yet, much of it can be overlooked or undervalued.

Once the basics of operations have been thoroughly addressed and are well managed for growth, leaders must turn their attention to the structure and infrastructure of their organizations. Departments should be integrated for maximum growth potential and functions should also be appropriately aligned. IT initiatives, for instance, should be strongly linked to business objectives and used to propel decision-making processes throughout the company. 

What’s more, organizational relationships and the proper employee mix are also factors in the growth formula. Interactions between in-house departments and outside business units, front office and floor, or service and sales can either drive or stall growth. This is a fundamental fact that leaders simply cannot afford to ignore. Executives must leverage structure and interactions so as to position the organization to meet its fullest growth potential.

Only with the internal basics addressed and in good order can companies then move on to weighing external growth strategies.

Ability creates opportunity

More than even financial limitations, mishandling the essentials can severely restrict a company’s chances for reliable long-term growth. The good news is that the keys for moving your organization down the road to growth are predominantly within your control.