All too often senior leaders see managing today's earnings as their main job and don't spend enough time on the pursuit of long-term growth. It's important for all executives to nurture "internal start-ups," clusters within the organization that help deliver both earnings and growth. Here's how:
- Create the conditions. Make earnings and growth equally important top priorities. Work to remove cultural impediments such as risk aversion and the notion that any kind of failure is bad.
- Choose the right team leaders. Assign your best, most experienced general managers to lead growth initiatives. They have the necessary internal networks and understand the company's values and culture.
- Fund the ventures. Create funds for financing new ventures separate from the company's annual budget process. Tie funding to milestones with realistic time frames.
Adapted from
"Six Ways to Sink a Growth Initiative," by Donald L. Laurie and J. Bruce Harreld.
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