We’ve all been there. The CEO stands up, presents his vision of the future. He outlines the great and detailed plan the senior team has been working on for weeks. There are usually drinks. Everyone is on a high.Then next morning everyone goes back to the day job. Nothing changes and that great plan (which cost $$$ in consultant’s fees to develop) is consigned to the shelf behind the CEO’s desk.
So why? Why do business growth plans fail? This list is likely to be exhaustive. Here is our top 3 reasons why business growth transformation projects fail – and some suggestions as to how you can avoid them.
- Lack of understanding of the financial assumptions underlying the plan - Without doubt your Business Growth Transformation plan has a set of financial assumptions underlying it. Too often we see fancy financial models, but no clear set of assumptions. Be clear on the assumptions underlying the finances. The list should be short, clear and everyone on the management team should be able to recite them. Be explicit. And then ensure that whatever KPIs the team is working to are aligned to those assumptions.
- Lack of team capability to execute - A solid growth transformation plan should include an organisational chart. There needs to be honest conversation about the teams’ capability to execute. It’s likely that new skills will need to be developed or acquired. Don’t shy away from these conversations – be honest, your plan depends on it.
- Lack of leadership - This is possibly one of the most common. Without strong leadership people will revert to doing what they have always done. Without change the results are predictable. So once the plan is agreed, exercise strong leadership to ensure execution. Be relentless. If new metrics have been agreed obsess about them. Review the plan weekly. Keep the team on track.