Our strategic growth planning engagements deliver a clear understanding of the sources of growth that will materially contribute to the overall Value Creation Plan for a business. We examine the highest growth potential opportunities, identify market forces that might create risk or opportunity, assess capabilities needed to achieve the growth and prepare implementation plans and financial forecasts for the initiatives.
Identification of Growth Opportunities – We review existing revenue forecasts and strategic plans to understand management current projections and strategy. Leveraging our “Data Probe” we analyze current company data to develop granular insights about underlying revenue generation issues and potential growth opportunities. Management workshops provide an open forum to identify and assess and prioritize strategic growth opportunities based on significance and attainability. Workshop topics might include:
- New geographies, segments, and channels
- Product and R&D pipelines
- Strategic partnerships
- Potential adjacency markets
- Key questions and issues to further validate the identified opportunities
Market / Customer Assessment – Conducting extensive secondary industry research provides a better understanding of market sizing and dynamics; example questions to be addressed include:
- What market forces are at play that might create risk or opportunity for the client?
- What are the factors and trends that will affect demand for the client’s products/services?
- How are competitors positioned and what are their economics?
Customer interviews following our The Nine Voices of the Market® methodology further identify potential growth opportunities and provide and understanding of the portfolio company’s perceived market position.
Internal Capability Assessment – We use our 100 Behaviors of High Performing Revenue Engines™ methodology to interview key internal stakeholders and assess the portfolio company’s current capacity and capabilities to pursue the identified growth opportunities; example topics to address include:
- How prepared is the client to capture the opportunity in the market?
- Do they have the necessary capabilities and commercial processes?
- What other capabilities are critical to achieving growth targets?
Key gaps can then be developed together with a prioritized list of possible approaches to build required capabilities.
Validate Growth Drivers and Capabilities – The company’s existing capabilities and market position are compared against the opportunities to provide a basis for assessing opportunity viability and setting initiative priorities as shown in the framework chart below.
Sometimes, the growth strategy effort highlights a gap between the future revenue aspirations and the revenue trajectory available in the core business. In such a case, the growth strategy must include considering the extension of the core business into new areas—new end markets, new geographies, new product lines and/or new channels.
Develop and Document Detailed Growth Strategy – The final step is synthesizing the internal and external data to create and document a multi-year growth strategy based on the high potential growth initiatives.
- Draft initial requirements and capabilities list for growth strategy, including key capability gaps relative to the current organization
- Build financial forecasts, both revenue and EBITDA
- Identify key risks and implementation challenges
- Develop a prioritized implementation roadmap for initiatives including required actions, investments and estimated timing
Blue Ridge Partners supports our clients in a variety of growth strategy related projects, including:
- Growth Plan Development: The identification of growth alternatives, the selection of the most attractive and impactful paths and the preparation of a specific implementation plan.
- Adjacency Scanning: A methodical approach of quickly evaluating a large number of potentially attractive adjacencies, and prioritizing them based on company objectives and strategic and financial criteria.
- New Market Assessments and Entry Strategy: In-depth reviews of markets to determine market attractiveness, “what it takes to win,” strategic fit with company’s capabilities and assets, and best way to enter, e.g., make vs. buy.
- Annual Growth Plan Refresh: An annual review of growth plan status and assessment of any significant market or internal capability changes that would change the growth strategy.