Planning to Get ‘Unstuck'

For many organizations, there comes a time when they “level off” at a certain amount of annual sales. It doesn’t matter the dollar amount of top line sales, moving up from that number seems elusive. Frustration sets in as generating new sales becomes an exercise in simply replacing lost accounts or contracting orders from existing customers.

Consider a well-managed printing company which had leveled off at $22 million in annual sales. During an offsite planning meeting, the target of $25 million was discussed. It was quickly pointed out that this goal was set in the past, only to see the organization realize about $22 million, roughly the same as the past couple of years. Several explanations (rationalizations?) were offered. The sales team was working hard, but “we lost a couple of accounts unexpectedly and through no fault of ours.” And so it went.

Finally, I suggested that maybe the problem was the target itself. “Why are you targeting $25 million?” I asked. “Why not $50 million?” That certainly drew a response; lots of reasons why that lofty target made no sense at all when they were struggling to surpass $22 million.

Finally, in response to the idea of a $50 million goal, their head of manufacturing, (someone with a habit of thinking before he speaks) said in a calm voice “Well one thing is for sure. We’ll never get there doing what we’re doing now.” Exactly! You can’t even get to $25 million doing what you’re doing now!

In their seminal book “10X is Easier Than 2X,” Strategic Coach Founder Dan Sullivan and co-author Dr. Benjamin Hardy explain that the work required to reach 10X growth is often only incrementally more than what is needed to achieve the more modest growth plans which many companies feel comfortable with (and often, don’t reach). It starts with a way of thinking.

Setting incremental goals inherently suggests that what you’re doing now is fine, you just need to do a bit more of it. Often, that becomes a recipe for complacency and, eventually, even institutional arrogance. Paradoxically, growing at 10X is more about what you stop doing than what you start.

Setting ambitious goals can set in motion a different way of thinking and can energize the entire company. It begins in strategic session with a highly developed way of examining internal capabilities and external opportunities. In the case of the $22 million client, the $50 million goal changed their way of thinking and their entire approach to growth. Among other strategies, they developed a systematic and highly thought-out acquisition process and grew to more than $100 million in sales before selling to a much larger platform company.

For more information on getting the most from your strategy and planning process, contact me at joe@ajstrategy.com or visit my website ajstrategy.com.

The preceding content was provided by a contributor unaffiliated with Printing Impressions. The views expressed within may not directly reflect the thoughts or opinions of the staff of Printing Impressions. Artificial Intelligence may have been used in part to create or edit this content.