4 Keys to Achieving Organic (Sustainable) Growth

One of the things I’ve been having the most fun with during my time as an advisor is hosting live workshops with boards and leadership teams to talk strategy.

We go deep into an organization's goals and friction points.

In the last month, I’ve invested time traveling for in-person sessions with a few leadership groups and a consistent (and notable) theme has come up…

Organizations want to grow (who doesn’t?)—but it's important it's on their own terms.

This conversation usually comes up related to their ownership model and if they are going “sell or stay”. Essentially, are they going to grow on their own or take on some sort of financial sponsor in the form of PE, merging up, selling, etc.?

The thing is, I believe making this an EITHER/OR, or even linking these two important topics, is the wrong approach. As though it’s all about choosing one ownership model or the other… or the two are inextricably linked.

There’s a different outlook organizations can take on this topic that would contribute to the probability of their long-term success.

From my experience serving as CEO of an organization that grew revenue from $475 million to nearly $1.5 billion in a few years, I’d like to share my recipe for growth that has nothing to do with your ownership model.

(If you’re reading this and not leading an organization, I’ll relate this back to your career too. I encourage you to keep reading.)

The Coal That Fuels the Engine

Organizations (and professionals) are either growing or on the path to becoming less relevant.

There’s no middle ground because the marketplace (other organizations and other professionals) are constantly making investments in their growth.

Look, the reality is that not everyone can grow, and certainly not at the same rate.

So, if you aren’t growing, you are falling behind.

Now, it doesn’t mean you can’t still perform or maintain as an organization, but you’re unlikely to be the organization that thrives in the future and redefines what’s possible if you aren’t achieving better than average organic growth.

And if you’re reading this email, I imagine you want to be the person and lead the organization that continually reinvents itself and thrives for years to come.

So if growth is so important, how do organizations actually go about doing it?

As you can imagine, growth can be a complex process that has many variables. I'm going to do my best to distill it down to what I believe to be the foundational principles that are required for growth.

Let’s dive in.

My Recipe for Growth

Just like you can’t bake a cake without some essential ingredients like flour, eggs, sugar, and baking soda, there are 4 “ingredients” that I believe all companies that grow in a meaningful and sustainable way have in common:

1) A well-defined and well-executed strategy.

A strategy is a framework. It’s a roadmap - where are we going, how are we getting there, and why?

Effective strategies describe a future state and establish a guidepost that an organization's plans and actions will align to.

Don't confuse this with defining how big or profitable you want your organization to be….or how fast you want to grow. Strategies aren’t about numbers.

“We want to be a $100 million dollar firm by 2025” isn’t a strategy.

Strategies define what we want to represent and how we make a difference for our stakeholders.

Well-executed plans (may) lead to immediate results.

Well-defined and executed strategies are likely to lead to intentional, sustainable results.

It’s rare to see an organization BREAK THE MOLD™ and achieve differentiated outcomes without an effective strategy.

I wrote an entire entry about how to build strategies that lead to sustainable success here.

2) A truly differentiated solution/offer in the marketplace.

Organizations (and people) that grow at rapid rates have clear answers to the question: Why are we different?

Hint: It’s not going to be something like “we care about our clients” or “we’re advisors”. It has to be deeper than that.

What's unique about the way you care for clients? How do you do it? How do you approach advising in a unique way? Why is it valuable? What value are you creating for your clients that others can't deliver like you do?

Heck, if you're coming up short on meaningful answers internally, go ask your clients. They'll point you in the right direction.

If you can't identify why you're different, well, then you probably aren't…

And that’s not conducive to your ability to grow.

If you’re stuck on this answer, refer back to this article I wrote for some more insights.​

3) Engines to do things with people, for people, and in spite of people.

When I refer to engines, I’m talking about defining systems and processes (sometimes built on technology and automation, but not always) to ensure important things continue to get done in a predictable way.

For example, during my time "inside the ring" as CEO, I worked to build an engine for innovation within the firm.

The question was: How do we ensure we prioritize innovation and continue to be a forward-thinking firm?

My solution was to create an innovation lab. A (physical) place where all new hires to the firm would invest time during their first week.

Within the lab, we'd speak about and demonstrate what it looked like to bring innovation into day-to-day work to create a certain culture within the firm.

From day one, that mindset would be instilled into every new team member who joined the firm.

Once built, it would become an engine for innovation.

The parts would work as they were designed and we'd create a systematic experience that was contributing to our strategy as a firm.

Engines are working in the background to create predictable results. Those predictable results start to compound which leads to growth.

For a more comprehensive guide on engines, refer back to this article.​

4. Significant investment of financial capital and intellectual capital.

Organizations that are rapidly growing (especially at rates of 10%+ per year) are likely making significant investments to create that reality.

Those investments require financial capital and intellectual capital.

If you want to grow, you have to be intentional about having financial capital (cash) on hand to invest in your people, your technology, and expansion opportunities.

Likewise, you will need to make significant intellectual capital investments by having talented people, investing in their development, and partnering with those people to help create differentiated solutions and outcomes.

At a recent session with a client’s Board, the statement ‘we want to be a technology-first or technology-enabled organization’ was said.

When I asked the participant, ‘What will it take to be that organization?’, the response I received was ‘Not sure…”.

It’s common that I hear organizations proclaim progressive visions without having a strategy or plan in place and without acknowledging the investment necessary to achieve their aspirations.

There’s no way around it. These investments are going to be required if you want to keep up with the most innovative organizations in your space, no matter how you decide to go about making them.

It will take what it takes.

My point here is that growth is essential if you want to continue to be a relevant and sustainable organization (or professional).

And the things that lead to growth aren’t going to change—no matter how you choose to play the game.

Whether you decide to remain an “independent firm” or you choose to take on a financial/strategic sponsor, growth is the name of the game.

No matter which route you choose, it will take the same amount of ingenuity, commitment, investment, alignment, and a whole bunch of other factors to make it there.

On a foundational level, to grow and thrive in the future, you will need:

1. A well-defined and well-executed strategy.

2. A truly differentiated solution/offer in the marketplace.

3. Engines to do things with people, for people, and in spite of people.

4. Significant investment of financial capital and intellectual capital.

Whether you choose to do that all on your own or not, you will have to keep up with all the other organizations playing the same game in different ways.

The same goes for you as a professional… you will need to grow, develop, acquire unique skill sets, and invest in yourself if you want to thrive in your career.

Whether you choose to bring on a partner (like a coach or advisor or ​mentor​) or go at it alone, it will take what it takes.

There’s no right or wrong answer.

Act on these foundational elements that lead to growth and make a commitment to see them through. Do that, and you’ll be amazed at where your organization (or your career) can get to in a matter of years.

I've recently traveled to Pittsburgh, Chicago, Detroit, Atlanta, New York, and Washington, DC to host growth & strategy workshops with boards and senior leadership teams of firms and it's been a blast. I'd love to do a few more this summer.

If you'd like to open a discussion around hosting a similar workshop for your organization, ​you can start the conversation here.​​

As always, a reply with any thoughts or feedback comes directly to my personal email. I'd love to hear from you.

With intention,
Alan D Whitman