ntk business tip: 3 ways to get better business growth

It’s often said that businesses focus too much on managing today’s earnings. And don’t focus enough on the pursuit of long-term growth. What do you think? True for your business? Well, here’s a useful management tip from Harvard Business Review

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Harvard Business Review gives this advice – that it’s important to nurture “internal start-ups,” clusters within the organisation that help deliver both earnings and growth.

• Create the conditions. Make earnings and growth equally important top priorities. Work to remove cultural impediments such as risk aversion and the notion that any kind of failure is bad. 
• Choose the right team leaders. Assign your best, most experienced general managers to lead growth initiatives. They have the necessary internal networks and understand the company’s values and culture. 
• Fund the ventures. Create funds for financing new ventures separate from the company’s annual budget process. Tie funding to milestones with realistic time frames. 

Adapted by HBR from “Six Ways to Sink a Growth Initiative,” by Donald L. Laurie and J. Bruce Harreld, August 2013.