Profitable Growth Is Everyones Business

Home
>
Book Reviews
>
Profitable Growth Is Everyones Business - A Book Summary

Profitable Growth Is Everyones Business - A Book Summary

The days of ruthless downsizing and drastic cost cutting are long gone. Nowadays, companies have realized that the best way to earn profit is only through growth ? profitable growth. In this book, author Ram Charan provides 10 tools anyone can use to hurdle obstacles and achieve profitable growth.

These tools are:

1. Revenue growth is everyone's business, so make it part of everyone's daily work routine.

2. Hit many singles and doubles, not just home runs.

3. Seek good growth and avoid bad growth.

4. Dispel the myths that inhibit both people and organizations from growing.

5. Turn the idea of productivity on its head by increasing revenue productivity.

6. Develop and implement a growth budget.

7. Beef up upstream marketing.

8. Understand how to do effective cross-selling (or value/solutions selling).

9. Create a social engine to accelerate revenue growth.

10. Operationalize innovation by converting ideas into revenue growth. One of the most critical points discussed is the need for re-orientation of thinking. Most businessmen and executives think about growth as "home-runs" and more often than not disregard the "singles and doubles". Managers often look forward to the big breakthrough or the grand new product without realizing that home runs don't happen everywhere ? sometimes, they don't even happen in a decade.

Instead of aiming for that one grand home run, aim for singles and doubles. This is a surer and more consistent path. Of course, it is important to note that while aiming for singles and doubles, one should not exclude home runs. These singles and doubles come from an in-depth analysis of ALL the fundamentals of a business.

Another factor to be considered is the difference between good growth and bad growth. Managers should dispel the myth that growth in whatever form is a victory. Although growth (both good and bad) builds revenue, only good growth increases not only revenues but also improves profits and is sustainable over time.

Bad growth, on the other hand, lowers shareholder value. Unwise mergers and acquisitions are examples of bad growth. Price cutting to gain market share without cutting costs can also be detrimental to your company's health.

Here are some questions that can help you diagnose whether or not you are part of a growth business:

1. What percentage of time and emotional energy does the management team routinely devote to revenue growth?

2. Are there just exhortations and talk about growth or is there actually follow through?

3. Do managers talk about growth only in terms of home runs? Do they understand the importance of singles and doubles for long-term, sustained organic growth?

4. How much of each management team member's time is devoted to making effective visits with customers? Do they do more than listen and probe for information and then try to "connect the dots"?

5. Does the management team come into contact with the final user of your product?

6. Are people in the business clear about what the specific future sources of revenue growth will be? Do they know who is accountable?

7. Would you characterize your company or business unit's culture as cost cutting or growth oriented? If the answer is one or another you need to start doing both. Do people in leadership positions have the skill, orientation, and determination to grow revenues?

8. Does the company practice revenue productivity? Does it think through whether there are ways to more effectively use current resources to generate higher revenues?

9. How well does your sales force extract intelligence from customers and other players in the marketplace? How well is this information communicated and acted on by other parts of your organization, such as product development?

10. How good are the upstream marketing skills- that is, the ability to segment markets and identify consumer attributes- in your business?

About the Author:

Ram Charan is coauthor of the landmark Fortune article "Why CEOs Fail" and an adviser on corporate governance, CEO succession, and strategy implementation. He was named as Best Teacher by Northwestern's Kellogg School and as a top-rated executive educator by Business Week. He is author of Boards at Work, coauthor of Every Business Is a Growth Business, and a frequent contributor to Harvard Business Review. (6/2000)

By: Regine P. Azurin and Yvette Pantilla

Regine Azurin is the President of BusinessSummaries.com, a company that provides business book summaries of the latest bestsellers for busy executives and entrepreneurs.

http://www.bizsum.com "A Lot Of Great Books....Too Little Time To Read" Free Book Summaries Of Latest Bestsellers for Busy Executives and Entrepreneurs

Mailto: mailto:freearticle@bizsum.com

BusinessSummaries is a BusinessSummaries.com service.

In The News:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://tonight.co.za/index.php%3FfArticleId%3D4663600%26fSectionId%3D441%26fSetId%3D251cid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNEiiQaQAsQoiFEoisbA3rz9NyWLwAbBook Reviews/b - October 16, 2008/abrfont size=-1font color=#6f6f6fTonight,nbsp;South Africanbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1While this 400- page-plus bbook/b could have been trimmed, this remains a startling and compulsive read. In The Behaviour of Moths by Poppy Adams we meet Ginny b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogcritics.org/archives/2008/10/15/175427.phpcid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNF5Ug6sss0fiEjC4WmMsVTesBWVWAbBook Review/b: The Adobe Photoshop Lightroom 2 bBook/b by Martin Evening/abrfont size=-1font color=#6f6f6fBlogcritics.org,nbsp;OHnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1Last August, Adobe released the second incarnation of their photography workflow product Adobe Photoshop Lightroom 2 to rave breviews/b. As is to be expected, b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloggernews.net/118178cid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNFxovpCFMl13tGO0UX4W7cBNhJ_5ASonoran Rage â€“ by Melody Groves: bBook Review/b/abrfont size=-1font color=#6f6f6fBlogger News Networknbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1by Sgt. Mom in bBook Reviews/b, bReviews/b Sonoran Rage is bBook/b 2 of the Colton Brothers Saga, which might at first squint appear to be a standard Western action b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.iht.com/articles/2008/10/14/arts/bookmar.phpcid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNH6Ir9vLMBqt7kzz93Um-d3gqdKkAbBook Reviews/b: #39;A Promise to Ourselves#39; and #39;The Brass Verdict#39;/abrfont size=-1font color=#6f6f6fInternational Herald Tribune,nbsp;Francenbsp;-/font nobrOct 14, 2008/nobr/fontbrfont size=-1His new bbook/b, quot;A Promise to Ourselves,quot; is a treatise on how the family law system in America is broken, and why it should be changed. It is a serious bbook/b, b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://technews.iit.edu/index.php%3Fid%3D1310cid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNESsZnngG1-jwoYdmbjvWOP3x3_cQComic bbook reviews/b: Space Rabbits/abrfont size=-1font color=#6f6f6fIIT Tech News,nbsp;ILnbsp;-/font nobrOct 14, 2008/nobr/fontbrfont size=-1Here are two new comic bbook reviews/b, guaranteed to distract you from your array of exams for at least a few minutes. Jonathan Hickman has written some great b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloggernews.net/118153cid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNGBwwOnJKt4qNV_dwsGDyxxygPTaQbBook Review/b: Paul of Dune - Brian Herbert and Kevin J Anderson/abrfont size=-1font color=#6f6f6fBlogger News Networknbsp;-/font nobrOct 14, 2008/nobr/fontbrfont size=-1by Fitz in All News, bBook Reviews/b, bReviews/b Back in the mid-1980s I read the original Dune novels from Frank Herbert - Dune, Dune Messiah, Children of Dune, b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.canadianbusiness.com/my_money/planning/article.jsp%3Fcontent%3D20081001_198604_198604cid=0ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNEAvsVTvhWjtUwMc2BlRmJBpnd81wbBook reviews/b: Weird and wonderful/abrfont size=-1font color=#6f6f6fCanadianBusiness.com,nbsp;Canadanbsp;-/font nobrOct 14, 2008/nobr/fontbrfont size=-1FOOLING SOME OF THE PEOPLE ALL OF THE TIME by David Einhorn ($32.99, Wiley): What an odd, compelling bbook/b this is. Einhorn, a New York hedge fund manager, b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.pacetoday.com.au/Article/Book-reviews-A-safe-journey-to-change/427347.aspxcid=1257541832ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNFMcUuoEuXOC_o9yibXXU6mhsfMhAbBook reviews/b: A safe journey to change/abrfont size=-1font color=#6f6f6fPACE Today (Process and Control Engineering),nbsp;Australianbsp;-/font nobrOct 13, 2008/nobr/fontbrfont size=-1Simply read the following breviews/b and answer the question at the bottom of the page to be in the running. Effective Maintenance Management is designed to b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.washingtonpost.com/wp-dyn/content/article/2008/10/16/AR2008101600011.htmlcid=1258247008ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNGrPP86XitM_YifOn8Jgy_gm4Xuywimg src=http://news.google.com/news?imgefp=aD0eldQhrAgJimgurl=media3.washingtonpost.com/wp-dyn/content/photo/2008/10/16/PH2008101600012.jpg width=53 height=80 alt= border=1brfont size=-2Washington Post/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.infosyncworld.com/reviews/cell-phones/t-mobile-g1/9844.htmlcid=1258247008ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNGwiYWs8HmPmaeONNUFe_Wy193zrgT-Mobile G1 breview/b (T-Mobile)/abrfont size=-1font color=#6f6f6finfoSync World,nbsp;Norwaynbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1Contacts were downloaded directly from our Gmail address bbook/b, and we count ourselves lucky that we#39;ve been maintaining a Gmail contact list for some time. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/16/technology/personaltech/16pogue.htmlcid=1258247008ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNGD-Kav-yFn_h7Qaxs3wRJ4fHgE4QState of the Art A Look at Googleâ€™s First Phone/a font size=-1 color=#6f6f6fnobrNew York Times/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://reviews.cnet.com/cell-phones/htc-dream-t-mobile/4505-6452_7-33340516.htmlcid=1258247008ei=vfD2SPeNMI_u6gPihJD9CQusg=AFQjCNEPWyK8yIpOYO1WEEs8tN_DR6Y_cwHTC Dream T-Mobile G1 (white)/a font size=-1 color=#6f6f6fnobrCNET Reviews/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1258247008hl=ennobrall 197 news articles/nobr/a/font/div/font/td/tr/table

book reviews - Google News