Strategies for growth
Board agendas have been dominated in recent years by issues of governance, cost cutting and restructuring. However, long-term profitable growth remains the ultimate challenge for many financial institutions and, as the economic recovery gathers pace, it is increasingly relevant to business leaders. Long-term profitable growth unites the interests of shareholder, employees and customers (see Figure 1).
Figure 1: Profitable growth framework (click here for larger version in a new window)
PA's industry research and operating experience shows that companies that grow successfully have achieved a balance between four imperatives: a healthy business; attractive positioning; continuous innovation; and sustainable momentum. Powerful market forces and management prejudices can lead to undue focus on any of these pillars, leading to an imbalance that ultimately hurts growth. Business leaders must not only guide their organizations to achieve these objectives, but they must also ensure that they are impartially sequenced and emphasized.
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