A 2022 McKinsey research shows that a quarter of companies don’t grow. In fact, one research found that only a tenth of S&P 500 companies grew over GDP for a period of 30 years! All the research has suggested that growth actually is a Decision. It’s not an accident or happenstance. Analysis shows that growth leaders (bosses who grow their companies more than the market) show their decisiveness through their thoughts, actions and words. Would you be surprised to learn that growth leaders deliver 80% more shareholder value over 10 years compared to their peers? Let’s take a deeper dive.
You might find this a surprising question but a lot of business owners I meet wish for growth but aren’t actually willing to do anything differently to grow. Those who have made the decision to grow have actively done so for a few reasons: attract and keep great talent, pay for innovation, create new jobs and in general, fulfill personal and professional dreams.
3 Key Components
The key components to growth, according to the research are: Mindset, Diversified Income and Excellent Execution. Each component breaks down into specifics and the one that I will be taking in hand, will be the most important one–Mindset. How do Growth Leaders think differently than any other leader?
If you have at least 3 out of the 5 mindset growth factors, your business is 2.4x more likely to grow vs. your peers. So I’ve flipped this equation and am going to list these factors as 5 signs(tells) that you DON’T have a growth mindset. Are you ready for some honesty?
Perfection vs. Speed
If your company prioritizes doing things perfectly vs quickly, you are less likely to grow vs. your competitors. 70% of growth leaders actually prioritize speed. So the next time you find yourself agonizing for weeks and months about whether you should let someone go, or invest in a growth initiative, think again and stop seeking perfection.
Failing is Not an Option
If you’re not willing to fail, then you are NOT a growth minded leader. 70% of growth leaders were willing to fail and sometimes did so spectacularly. However, more often times than not, they were rewarded for their fearless risk taking. Just like in the world of investment, the bigger the risk, the bigger the yield.
Guessing At Your Customer
If you have no clear idea of who your target consumer is and you don’t know them inside and out, that’s a great tell for not being a growth minded leader. Similar to the other mindset components, knowing customers intimately was a trait that 70% of growth leaders shared in common.
Short Term vs Long Term
A big tell that you’re NOT a growth leader is if you favour short term gains vs. the long game. Again, obviously there is more risk in losing in the short term. It’s scary in more than one way. Market dynamics and consumer trends might change in the long term. Short term gains pay for salaries and investing in the future. Sadly, this is a case of the chicken or the egg, which comes first? The risky long term investment or the profitable short term payout? Stats favour the long term.
If you have no growth story to tell constantly, both internally and externally-you are NOT a growth minded leader. If instead, you find yourself telling stories of hardship or failure or talking incessantly about the unstable economy or expected market difficulties then you are doing your company a disservice. A whopping 80% of growth leaders tell win stories over and over again, to anyone who will listen.
If you’ve been wondering why your company is stagnant and hasn’t had a growth year, take a look at these mindset components and shift to a winning attitude today.