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When Growth Stalls: How It Happens, Why You're Stuck, and What to Do About It
One of the toughest lessons every business leader learns is how hard it is to generate sustained growth. Stalled growth is the rule, not the exception--even for the best-managed companies. That's especially true in unpredictable economic environments such as the one we're experiencing today. McKee has a unique understanding of what happens when growth stalls. His firm commissioned a study of 700 companies that had at one time been among the nation's fastest-growing businesses. Developed in concert with Decision Analyst, a leading national research and consulting firm, the study probed areas as diverse as corporate structure, competition, branding, finance, and strategy. The target respondent profile were CEOs, owners, principals, presidents, managing directors or chairmen of the board. In-depth follow-up interviews yielded fascinating stories and personal comments from executives who had been living on the front lines of real-life growth crises. McKee presents compelling knowledge about how and why companies lose their way, and offers practical advice about how they can rekindle growth. When Growth Stalls demonstrates that sluggish growth is generally produced not by mismanagement or strategic blundering but by natural market forces and management dynamics that are often unrecognized--and widespread. The book presents seven characteristics that commonly correlate with stalled growth and what to do about them. Some are external forces to which countless companies have fallen economic upheavals, changing industry dynamics, and increased competition. What McKee points out, however, is how often they catch companies off-guard. More surprising are four subtle and highly destructive internal factors that conspire to keep companies lack of consensus among the management team, loss of nerve, loss of focus, and marketing inconsistency. McKee makes the case that, regardless of what's going on outside of an enterprise, it's what's inside that counts.
- GenresBusiness
240 pages, Hardcover
First published February 17, 2009
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Displaying 1 - 5 of 5 reviews
April 3, 2010
I picked this book up because McKee is going to be speaker at the SW Regional Fellowship of Companies for Christ International Conference in April.
I had heard that this local businessman had written a good good about business. I think he did.
This is a local guy made good. He is no slouch when it comes to business, he writes regular columns for BusinessWeek.com.
This book is filled with applications gleaned from the study of why good strong businesses start to fail.
He comes up with well documented evidence to support his conclusions that have helped his advertising business (when it stalled and declined) and he has helped many others.
"It's a book about lessons learned the hard way, brought to you by someone who has faced the same problems you may be facing today. I survived to tell about them, and as you apply these lessons, I'm confident you will, too." p12
MARKET TECHTONICS: like physical earthquakes, there are economic upheavals, aggressive competition, changing industry dynamics all conspire to change external business dynamics and company leaders are often caught flat-footed and ill prepared. p24
"Our research shows....the healthiest companies are those whose industry barriers to entry are high, whose differentiation is growing, or ideally, both." p30
"...It is not necessary to outspend your competitors, but it is necessary to out-think them." p33
These MARKET TECHTONICS reveal fissures within a company's internal environment:
1. Debilitating Lack of Consensus
-Does your company's leadership team respect and trust one another?
-Do you have confidence in one another and the company's plan?
-Are you all moving in the right direction?
-Are you fully aligned on strategy?
-Do you operate like a well oiled machine?
-Is it "one for all, all for one" in your company?
-Do you resolve disagreements well or does dissent fester?
-Can you make key corporate decisions confidently?
-Do you know they will follow and support you?
-Do you agree where you are and where you're going as a company?p54
2. A Lack of Focus in the Marketplace
"...be very, very relevant to your market.
Be clear on your core and what your place in the value chain is."
-Can you state your company's core competency in simple terms?
-Can your staff, employees? Does it line up with yours?
-Can you easily explain your company's uniqueness?
-Do you know exactly who your prime prospects should be?
-Do internal tactical talks elevate to complex strategic arguments?
-Are any employees or divisions working at cross-purposes?
-Do you struggle where to put marketing dollars?
-Is your R&D productive with ideas to reinforce core strengths?
-Do you have a simple, sensible, compelling elevator speech?
-Can you explain to your mother what your company does? p72
3. A Loss of Nerve Among Top Management
"...common, if subtle, reaction when growth stalls." p74
It is confusing, discouraging, paralyzing, wearying.
It is accompanied by fear of risk, resistance to change, reluctance
to invest. p77
-Do you sense you are taking as many risks as you used to?
-Are you as confident about your business as you were 3yrs ago?
-Are you sleeping as well as you used to?
-Are your direct reports confident in your leadership?
-Do you have a clear "next strategic step"?
-Are you unafraid making mistakes?
-Is your advertising award winning in the last 3 years?
-Are you honestly proud of your marketing efforts?
-Do you instinctively think of change as a positive force?
-Are you funding R&D and marketing efforts sufficiently?
p89
3. Inconsistency of Marketing and Execution Efforts
-Are marketing objectives undefined or unclear?
-Are you failing to achieve your marketing objectives?
-Do you have a muddy brand positioning?
-Is your brand personality undefined or unclear?
-Have you changed campaigns more than once in the past 5 years?
-Have you changed ad agencies more than once in the past 5 years?
-Have you had major turnover in your internal marketing staff?
-Have you had false starts in branding efforts?
-Are you more opportunistic than strategic in your marketing?
-Lay out all your ads, collateral materials: any look out of place?
p105
Lack of consensus, loss of focus, loss of nerve, inconsistency --- are a Vicious Cycle.
Build a new culture -- around strengths, eliminate ares of weakness.
-Do you have a problem with two or more of internal dynamics
listed: a lack of consensus, a loss of focus, a loss of nerve, or
inconsistency?
-Is your corporate culture usually dysfunctional?
-Do you have an unusually high turnover?
-Are you able to pinpoint which issue came first?
-Are you unsure which issue to address first?
-Does a discussion about one issue invariably lead to a struggle
with another?
-Do you find yourself in a loop of frustration as you consider how
to best solve things?
-Have you recently introduced a reorganization that isn't working?
p118
Think right, think positive when growth stalls.
It may not be my fault.
"It's not my fault, it is my problem"
Peter Drucker: "No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under leadership composed of average human beings." p122
SOLUTION: Top Box -- (clear objective)
"what must success look like?"
"specific, measurable objective with a real time
frame on which the company can focus to get back
on track."
Marketing Equation -- (well-defined target)
"What must we do to create/keep a customer?"
- have to know what target customers like/want from us
- analyze what current customers like/want
- more power in narrowly defining your target customer
- the more narrow the target, the more intense your
brand appeal
Be More Distinctive
- to set your company apart from the competition
- "branding" - the art of reducing uncertainty
- not easy but increases prospective customer trust p160
Execution is Everything
"...the more consistent you execute within your chose niche, the more difficult you will be to overtake." p178
O-E-O-E-O... OPINION of customers and prospective customers generated by EXPERIENCES of consistently interacting with your company p181
Consistency in marketing matched by consistency in execution is the key to avoidance stall in growth (factor of 4).
SUMMARY:
1. UNDERSTAND THE TECTONIC EVENTS BUFFETING YOUR COMPANY
2. ALIGN TEAM AND FIND YOUR TARGET
3. FOCUS YOUR BRAND
4. EXECUTE CONSISTENTLY
I had heard that this local businessman had written a good good about business. I think he did.
This is a local guy made good. He is no slouch when it comes to business, he writes regular columns for BusinessWeek.com.
This book is filled with applications gleaned from the study of why good strong businesses start to fail.
He comes up with well documented evidence to support his conclusions that have helped his advertising business (when it stalled and declined) and he has helped many others.
"It's a book about lessons learned the hard way, brought to you by someone who has faced the same problems you may be facing today. I survived to tell about them, and as you apply these lessons, I'm confident you will, too." p12
MARKET TECHTONICS: like physical earthquakes, there are economic upheavals, aggressive competition, changing industry dynamics all conspire to change external business dynamics and company leaders are often caught flat-footed and ill prepared. p24
"Our research shows....the healthiest companies are those whose industry barriers to entry are high, whose differentiation is growing, or ideally, both." p30
"...It is not necessary to outspend your competitors, but it is necessary to out-think them." p33
These MARKET TECHTONICS reveal fissures within a company's internal environment:
1. Debilitating Lack of Consensus
-Does your company's leadership team respect and trust one another?
-Do you have confidence in one another and the company's plan?
-Are you all moving in the right direction?
-Are you fully aligned on strategy?
-Do you operate like a well oiled machine?
-Is it "one for all, all for one" in your company?
-Do you resolve disagreements well or does dissent fester?
-Can you make key corporate decisions confidently?
-Do you know they will follow and support you?
-Do you agree where you are and where you're going as a company?p54
2. A Lack of Focus in the Marketplace
"...be very, very relevant to your market.
Be clear on your core and what your place in the value chain is."
-Can you state your company's core competency in simple terms?
-Can your staff, employees? Does it line up with yours?
-Can you easily explain your company's uniqueness?
-Do you know exactly who your prime prospects should be?
-Do internal tactical talks elevate to complex strategic arguments?
-Are any employees or divisions working at cross-purposes?
-Do you struggle where to put marketing dollars?
-Is your R&D productive with ideas to reinforce core strengths?
-Do you have a simple, sensible, compelling elevator speech?
-Can you explain to your mother what your company does? p72
3. A Loss of Nerve Among Top Management
"...common, if subtle, reaction when growth stalls." p74
It is confusing, discouraging, paralyzing, wearying.
It is accompanied by fear of risk, resistance to change, reluctance
to invest. p77
-Do you sense you are taking as many risks as you used to?
-Are you as confident about your business as you were 3yrs ago?
-Are you sleeping as well as you used to?
-Are your direct reports confident in your leadership?
-Do you have a clear "next strategic step"?
-Are you unafraid making mistakes?
-Is your advertising award winning in the last 3 years?
-Are you honestly proud of your marketing efforts?
-Do you instinctively think of change as a positive force?
-Are you funding R&D and marketing efforts sufficiently?
p89
3. Inconsistency of Marketing and Execution Efforts
-Are marketing objectives undefined or unclear?
-Are you failing to achieve your marketing objectives?
-Do you have a muddy brand positioning?
-Is your brand personality undefined or unclear?
-Have you changed campaigns more than once in the past 5 years?
-Have you changed ad agencies more than once in the past 5 years?
-Have you had major turnover in your internal marketing staff?
-Have you had false starts in branding efforts?
-Are you more opportunistic than strategic in your marketing?
-Lay out all your ads, collateral materials: any look out of place?
p105
Lack of consensus, loss of focus, loss of nerve, inconsistency --- are a Vicious Cycle.
Build a new culture -- around strengths, eliminate ares of weakness.
-Do you have a problem with two or more of internal dynamics
listed: a lack of consensus, a loss of focus, a loss of nerve, or
inconsistency?
-Is your corporate culture usually dysfunctional?
-Do you have an unusually high turnover?
-Are you able to pinpoint which issue came first?
-Are you unsure which issue to address first?
-Does a discussion about one issue invariably lead to a struggle
with another?
-Do you find yourself in a loop of frustration as you consider how
to best solve things?
-Have you recently introduced a reorganization that isn't working?
p118
Think right, think positive when growth stalls.
It may not be my fault.
"It's not my fault, it is my problem"
Peter Drucker: "No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under leadership composed of average human beings." p122
SOLUTION: Top Box -- (clear objective)
"what must success look like?"
"specific, measurable objective with a real time
frame on which the company can focus to get back
on track."
Marketing Equation -- (well-defined target)
"What must we do to create/keep a customer?"
- have to know what target customers like/want from us
- analyze what current customers like/want
- more power in narrowly defining your target customer
- the more narrow the target, the more intense your
brand appeal
Be More Distinctive
- to set your company apart from the competition
- "branding" - the art of reducing uncertainty
- not easy but increases prospective customer trust p160
Execution is Everything
"...the more consistent you execute within your chose niche, the more difficult you will be to overtake." p178
O-E-O-E-O... OPINION of customers and prospective customers generated by EXPERIENCES of consistently interacting with your company p181
Consistency in marketing matched by consistency in execution is the key to avoidance stall in growth (factor of 4).
SUMMARY:
1. UNDERSTAND THE TECTONIC EVENTS BUFFETING YOUR COMPANY
2. ALIGN TEAM AND FIND YOUR TARGET
3. FOCUS YOUR BRAND
4. EXECUTE CONSISTENTLY
March 9, 2009
I heard the author speak last night about his experience writing his book. It was a great talk. Now, I look forward to reading his book!
June 6, 2009
Great advice that applies when growth stalls but also applies when you are starting out. The things you need to know to grow your company!
February 17, 2010
This is a fantastic book! Leaders who run a business of any size will benefit from reading this book. Steve McKee did a great job analyzing the research.
April 1, 2010
Terrific! It's written for businesses in the sales doldrums. But, the information is very practical for a start-up, too. Excellent, detailed launch plan information.
Displaying 1 - 5 of 5 reviews