Growth in a downturn

While sustainable commercial growth is the holy grail, it remains elusive.  

If we look at the top 680 US publicly listed firms, only 25% have experienced consistent growth over the past 30 years once figures are adjusted for inflation. 

The power of three

While the company’s age, macro factors, timing (luck) and competitive landscapes impact growth rates, the evidence suggests that those with foresight, operational excellence, and restraint consistently win year after year.  

For commercial leaders and business owners, this means striking a balance between executing effectively today and planning strategically for tomorrow, while recognising that unsustainable growth at any cost is a path to inevitable failure.

Find freedom in a clear, actionable plan

Gary Pinaso’s research explains that success depends on developing a clear vision and strategy for growth, including how to obtain the resources and how fast to grow. For example, if you’re a gym, do you franchise or own premises? Is brand extension into apparel an option for growth, and should you grow organically or acquire it?  

So, while many business owners see the strategy process’s outcome as a plan, the key is to use the plan to guide operations—to guide what’s executed, what we say ‘yes’ and ‘no’ to, and where to invest the company’s scarce resources. This discipline drives restraint and feeds our capacity to focus on what’s important. 

Feel commercial liberation

Whether you are leading a multinational or scaling a business, growth guidelines help us frame and make good decisions consistently. These may include saying no to activities that stretch beyond core capabilities or do not align with growth goals, brand, or values.  

Four key questions to help define your growth future

“I think there’s a pattern in the companies that grow sustainably. They’re never in a hurry. They never have rush years to grow. They’re never trying to make up a growth shortfall. It’s consistent. I think they take their time. There’s a bit of patience in their growth of, do it right.” Gary Pisano. HBR, 2024.

As many companies focus on managing rising costs and inflationary pressures, it is essential to recognise real growth and learn how to achieve it. This can feel relentless, not glamorous. While it may not get you on the cover of the AFR, it will deliver sustainable business growth.

At Emmet, our business strategy workshops deliver actionable strategies for sustainable growth and transformative results. Learn more about our Business Strategy approach.