We agree with the vital role adequate capital plays in ongoing success, but lack of capital is the devil everyone is familiar with. Some characters are stereotypical of the times but there are more who aren't. The founding management team either instilled a customer orientation or it didn't, and the employees follow suit. The team will remain stable assuming the ongoing success of the company. G r o w t h a n d Its C h a l l e n g e s 7 Early success provided breathing room, a little cash in the bank, and confidence that survival is possible. But there are more subtle yet critical interfaces with customers that may not immediately come to mind. New products, channels, and markets are deployed quickly.
Certain initiatives exceed management's expectations while others fail miserably. Dr Kumar is an engineer who entered the academic world following a long career in manufacturing business and has since taught almost every aspect of business and management. If interested in obtaining an electronic copy of the book for review, please email Julie bqbpublishing. Each of which will be a moment when the Sustaining Growth through Enhanced Customer Loyalty 37 truth is disclosed about whether or not the company, in reality, delivers what its customers want. Sadly, keeping existing customers often becomes a priority only after attrition of the existing customer base becomes a significant problem. Real growth companies cannot maximize their potential by planning for the day they will not exist. The executives should review the seven-page document prior to the session.
Unlike the fiscal behaviors of our federal government, where nothing is ever cut from the budget, and the bureaucrats yelp whenever there is a decrease in the growth Dynamic Planning and Budgeting 81 Figure 3. All the pieces are constantly in motion, and companies must develop processes that effectively accommodate the fluid environment in which planning occurs. Answering these questions is a constant and ongoing judgment call as the company grows. The collaborative management of start-up changes as discrete business functions and departments evolve. Too often, management comes to the conclusion if they can only make that kind of revenue growth a reality, the company is well on its way to phenomenal success.
The product has certain physical characteristics and features. The patient is admitted to the hospital. The moral of the story is simple. This again is particularly pronounced in early growth companies, where so much emphasis is placed on acquiring new customers. The fundamentals are the same, but the flexibility of the planning process must match the dynamics of the environment.
They are determined by assessing the environment and the company's capabilities. H u m a n encounters are perhaps the most obvious and critical. When you complete the assessment, if 75 percent of the new niche's required competencies are not already resident in the company, pursuit of it will require massive amounts of time and money. The management team must identify sources of capital and initiate steps to acquire that capital long before they need it. Where does this spiral end? Bean rep when they were exchanging a blouse; and, believe it or not, with the elegant professionalism of the concierge at the Ritz Carlton when asked for simple directions to a restaurant. Relatively arbitrary estimates of percent increase in sales and the commensurate increase in expenses do not reflect the changing environment, as the strategic plan does, or should. Companies must master the art of making very good decisions and making them very quickly.
Has past growth been profitable? Sales compensation plans and incentives drive the desired selling behaviors. Growth and executive attrition creates opportunities, many of which will be filled by existing middle management. Shame we didn't think of it. The somewhat ominous predictions above may seem melodramatic and overstated. This is especially true of successful entrepreneurial firms that survive start-up and experience an early growth surge. But first, a few basics.
The Competitors' Perspective The Horizontal Ovals As a minnow, few su tial competitors know or care about what you are doing. So, when are you growing too fast? Assumptions were tested and verified. So do bankruptcies certainly an exit event. Implications There is nothing wrong with a temporary company as long as it's not passed off as a growth company. The previously mentioned service company is a case in point. Executing the Business Plan 85 Middle Management Senior management is more and more dependent on middle management to run the company's day-to-day operations. Some characters are stereotypical of the times but there are more who aren't.
The company has certain uniqueness in the marketplace that is captured in its value proposition; everyone in the company is familiar with the value proposition. The executives must completely embrace the fact that middle managers are more than mere task workers charged with implementing the plan handed down from above. It must be allowed to do so. The remainder of the book not only poses questions, but provides answers, the ways and means, to master the disciplines. Employees follow their bosses' examples, be they good or bad. However, at what point were the valid, previously nonfunded or underfunded activities brought up to par, and when did nonmission critical expenditures make their way into the budget? New competitors enter the market.