Energy: the force behind future growth
Sustained value creation demands growth. In the short run, you can create value by optimising costs or products/services. But in the long run, value creation derives mainly from top-line growth, which accounts for over two-thirds of total shareholder return in FTSE100 companies over a 10-year period.
Even in today’s uncertain business climate, sustainable growth is still possible for traditional/non-tech businesses such as those in the built environment. Of course, what makes one company thrive tomorrow is different from what made it succeed yesterday. Relying too much on rear-view data can be deceptive; current performance isn’t predictive, and many established businesses remain vulnerable today despite their strength and length of past performance. Sudden collapses happen, and now more frequently than ever.
To survive, and ultimately thrive, businesses need to nurture, develop and build on their potential for reinvention and growth. They need to stay energised. There are three key building blocks to achieve this:
- Constantly developing future ways to grow. This is the main way for a brand to stay energised, despite the age and size of the organisation behind it. You need to constantly review, renew and revitalise your corporate plan, encouraging an entrepreneurial attitude that leads to constant exploration – even while you’re capitalising on the benefits of a previous exploration.
- Rethinking your strategy. Instead of focusing too narrowly on maximising short-term gain, successfully energised organisations focus on exploring longer-term goals. Future-focused strategic thinking has been proven time and again to lead to better growth over time.
- Committing to building the right capabilities. Successfully energised organisations stay up-to-date with relevant emerging technologies. They also choose transformative, rather scale or cost-driven, mergers and acquisition when necessary. By absorbing smaller, faster-growing companies they stimulate growth and inject new capabilities into their brand.