Building Momentum – A Business Growth Strategy.

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In our articles on Strategic Growth, we mention an important tenet in the marital art of Judo, where the concept of utilizing the momentum of your opponent is taught to achieve success.  Building momentum in a business is similar, and our research has shown that the probability of business growth is enhanced when momentum of the strategic growth plan is achieved in the following ways:

Discipline

Loren Thompson describes how Louis Chenevert, CEO of United Technologies, grew the Company at a time when the US economy was shrinking and in the aftermath of the sub-prime mortgage crisis, by consistently applying a disciplined strategic focus that focused on two broad markets, building technologies and aerospace, and sought out corporate acquisitions that contributed functional and financial synergies to realize positive shareholder returns.[1]

When you have a strategic vision of where you want your business to be in 3 or 5 years, only the consistent, disciplined application of the tasks needed to achieve that requisite goal will result in the success of the dental practice.

Collaboration

The strategic vision of the practice must be championed from the CEO and management to all the staff.  The synergy gained from having all personnel working towards the same goal will substantially outweigh the sum of the individual contributions of each staff member.

The main concept behind the LEAN model, for example, requires full collaboration between all personnel and resources at the dental practice, otherwise the anticipated results to be derived from applying the LEAN model (ie: the eradication of non-value-added activities and tasks) will never be achieved.

Measured Metrics

To ensure growth and sustainability in the business over the short-and long-term, it’s not enough to just implement the strategic vision and be disciplined every day when carrying it out.  You need to have yardsticks – measurements – that tell whether or not the strategy is on track and is working.  Metrics are quantifiable measurements that can be quickly and easily tracked, discussed, and acted upon by management  and staff.  We refer your to our video series on our website on KPI’s, which you can find on our Business Audit Proof” Video.  Being able to see the results as the strategy is played out enables everyone at the practice to tack or jibe, depending on the results seen.   Justin Moore, CEO of Axcient, a provider of  data backup software, provides some criteria when establishing quantifiable metrics:[2]

1. Metrics should be complete and accurate, based on clean and optimized data.
2. Metrics should be simple and easy to explain
3. Metrics should not create excessive overhead or be complicated to calculate
4. Metrics should cause employees to act in the best interests of the company.

Good metrics are building blocks to achieving momentum for the business, because they are the best and easiest way to chart the progress of the strategic vision

Nicholas Kilpatrick is a partner at the accounting firm of Burgess Kilpatrick in Vancouver, B.C.  He specializes in business development, and has worked with business owners to increase profitability at all stages of their operations.  He can be reached at nkilpatrick@burgesskilpatrick.com or at 604-327-9234.

[1] Thompson, Loren; Discipline and Imagination; How United Technologies Chairman Louis Chenevert Keeps His Powerhouse Running; www.forbes.com; April 2, 2014

[2] Moore, Justin; 7 Tips On Building Your Business With Better Metrics; www.forbes.com; July 9, 2012.