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Profitable Growth is Everyone's Business
Cover of Profitable Growth is Everyone's Business
Profitable Growth is Everyone's Business
10 Tools You Can Use Monday Morning
Borrow Borrow
The coauthor of the international bestseller Execution has created the how-to guide for solving today's toughest business challenge: creating profitable growth that is organic, differentiated, and sustainable.
For many, growth is about "home runs"—the big bold idea, the next new thing, the product that will revolutionize the marketplace. While obviously attractive and lucrative, home runs don't happen every day and frequently come in cycles.
Products like Kevlar, Teflon, and the Dell business model for selling personal computers may be once-in-a-decade phenomena. A surer and more consistent path to profitable revenue growth is through "singles and doubles"—small day-to-day wins and adaptation to changes in the marketplace that build the foundation for substantially increasing revenues. The impact of singles and doubles can be huge. They are not only the basis for sustained revenue growth but, in fact, the foundation for home runs. Singles and doubles provide the discipline of execution, an absolute necessity for successfully bringing a breakthrough technology to market or implementing a new business model.
Inherent in this way of thinking is the revolutionary idea that growth is everyone's business—not solely the concern of the sales force or top management. Just as everyone participates in cost reduction, so must everyone be engaged in the growth agenda of the business. Every contact of each employee with a customer is an opportunity for revenue growth. That includes everyone from the people working in a company's call center handling customer inquiries and complaints to the CEO.
In this trailblazing book, Ram Charan provides the building blocks and tools that can put a business on the path to sustained, profitable growth. For more than twenty-five years, Ram Charan has been working day in and day out with companies around the world. The ideas he has developed for solving the profitable revenue growth dilemma facing many businesses are based on personally seeing what works in real time. These are ideas that have been tested across industries and that deliver results, and they can be put to use starting Monday morning.
From the Hardcover edition.
The coauthor of the international bestseller Execution has created the how-to guide for solving today's toughest business challenge: creating profitable growth that is organic, differentiated, and sustainable.
For many, growth is about "home runs"—the big bold idea, the next new thing, the product that will revolutionize the marketplace. While obviously attractive and lucrative, home runs don't happen every day and frequently come in cycles.
Products like Kevlar, Teflon, and the Dell business model for selling personal computers may be once-in-a-decade phenomena. A surer and more consistent path to profitable revenue growth is through "singles and doubles"—small day-to-day wins and adaptation to changes in the marketplace that build the foundation for substantially increasing revenues. The impact of singles and doubles can be huge. They are not only the basis for sustained revenue growth but, in fact, the foundation for home runs. Singles and doubles provide the discipline of execution, an absolute necessity for successfully bringing a breakthrough technology to market or implementing a new business model.
Inherent in this way of thinking is the revolutionary idea that growth is everyone's business—not solely the concern of the sales force or top management. Just as everyone participates in cost reduction, so must everyone be engaged in the growth agenda of the business. Every contact of each employee with a customer is an opportunity for revenue growth. That includes everyone from the people working in a company's call center handling customer inquiries and complaints to the CEO.
In this trailblazing book, Ram Charan provides the building blocks and tools that can put a business on the path to sustained, profitable growth. For more than twenty-five years, Ram Charan has been working day in and day out with companies around the world. The ideas he has developed for solving the profitable revenue growth dilemma facing many businesses are based on personally seeing what works in real time. These are ideas that have been tested across industries and that deliver results, and they can be put to use starting Monday morning.
From the Hardcover edition.
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  • From the cover The Challenge of Profitable Revenue Growth

    GROWTH IS the elusive goal at the top of everyone's agenda.

    There are three reasons why it's proving difficult to achieve.

    First, the balance has gone too far in the direction of cost-cutting at the expense of revenue growth. More thought and time have been given to tools like Six Sigma and actions like restructuring, achieving size through acquisition, and looking for opportunities to consolidate in an industry undergoing upheaval than to revenue growth.

    Second, when most managers do think about growth, it is in terms of home runs—the disruptive technology, the new revolutionary business model, the mega-merger—instead of the singles and doubles that, when executed at a steady pace, cumulatively can increase revenues substantially.

    Third, improving productivity and increasing revenues are seen as two separate issues, when they are, in fact, inseparable for long-term success. If managers concentrate only on raising productivity, they are doing only half their job.

    Improving productivity means that a business finds a better way to do something that results in the enhancement of its competitive position and/or the creation of new opportunity, while at the same time producing funding that can fuel its growth. In contrast, sporadic, deep cost-cutting—downsizing, closing plants, across-the-board budget cuts—are one-shot reductions (often without attention to the consequences for revenue growth) that do not result in doing things in a better way. Cost-reduction campaigns are largely a result of the lack of discipline of productivity improvement on a long-term consistent basis. When employees experience these cost-reduction campaigns every year and sometimes two or three times a year and revenues are flat or declining, they know they are in a business going nowhere. It becomes a personal-survival issue and saps their emotional energy.

    That's just how Bill Carter felt. He could already feel the acid churning in his stomach. The reason was simple: It was about to happen again.

    Until nine months before, Carter, a store manager for the Furniture World chain, thought he had the best job in the world. As the person in charge of the "place to go for all your home furniture needs," he had for twelve years supervised what he thought of as "his store" in suburban Miami. He had turned in steadily increasing sales and earnings numbers year after year. He was always in the top 10 percent every time the 217-store retailer ranked the performance of each of its store managers.

    But what Carter really loved was the joy he experienced in growing the business. Every time friends would ask why he had turned down opportunities for advancement from more important retail chains, he cited the thrill of being able to make his decisions in a growth business. For example, he was given the freedom and had the discretion to source merchandise that matched the needs of the unique demographics of his market, well-to-do Hispanics. This discretion drove his creative juices to ever-higher levels as he strove to grow revenues and be the largest and best retailer in the community. Not only were revenues increasing, but Carter was experiencing personal growth as well.

    Carter couldn't see himself ever leaving Furniture World.

    And then everything changed. Furniture World was acquired at an exorbitant price a by Fortune 100 conglomerate. For a few weeks, it seemed that nothing major was going to change—then the real overhaul began.

    To help pay for the acquisition, the new parent company announced a mandatory, across-the-board, 8 percent head-count reduction. It...
About the Author-
  • Ram Charan is the coauthor of Execution: The Discipline of Getting Things Done, the international bestseller that has changed the way managers run their companies. He is a highly sought-after advisor to CEOs and senior executives in companies ranging from start-ups to the Fortune 500. Dr. Charan earned his doctorate at Harvard Business School and has been on the faculty of that school as well as the Kellogg School of Management at Northwestern University. His articles have been published in Fortune magazine and Harvard Business Review, and his other books include What the CEO Wants You to Know, Boards At Work, and The Leadership Pipeline.
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  • AudioFile Magazine An international business consultant offers a welcome antidote to the corporate compulsion of cost-cutting as a primary tool for increasing profit every quarter. Reducing costs is fine, he says, but unless companies have a deliberate and detailed strategy to grow, they don't keep making cash. They will shrink, lose momentum, and betray talented employees who depend on growth for advancement opportunities. The author's concise ideas on how to look for growth in current and potential markets are based on a solid customer focus and open communication practices. Though the range of topics is ambitious and the flow fragmented at times, by the program's end there is more than enough coherent substance to chew on. T.W. (c) AudioFile 2004, Portland, Maine
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Profitable Growth is Everyone's Business
Profitable Growth is Everyone's Business
10 Tools You Can Use Monday Morning
Ram Charan
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