We measure the growth potential of major organisations, regardless of where they are located in the world.
Why measure growth potential?
Every business leader seeks to create shareholder value, whether by rationalising the business, or adopting a market-led growth strategy.
If you are embarking on a growth strategy for your organisation, then you will want early evidence that the initiatives designed to drive growth are having traction in the marketplace.
And if you are focussed on cost cutting to provide a quick turnaround in profit, you will want to ensure that the cuts don’t damage long-term relationships with current customers. Monitoring your organisation’s growth potential can provide early warning signs if it is moving into negative territory. This might trigger a revision in business strategy to counter a potential loss in market share.
In short, growth potential should be on every business leader’s agenda.
GPS provides business leaders with the information they need to discuss market-led growth in the boardroom.
Business leaders and boards don’t need complex answers to strategic questions. They need straight answers based on sound thinking driven by customer insights. A GPS study answers three key questions:
- what is my organisation’s growth potential vis-à-vis our key competitors?
- why do we have a positive (or negative) growth potential?
- how can we realise our positive growth potential … or defend our existing market share if our growth potential is negative?
We have developed a completely new approach to measuring growth – the Growth Potential ScoreTM (GPS) – a true measure of growth potential.
Our proprietary GPS study is a market-based survey that provides you with the growth potential score for your organisation, as well as the scores of your key competitors.
For instance, suppose a market of two million customers has three main competitors – organisation A with 600,000 customers, B with one million customers, and C with 400,000 customers. If their growth potential scores are 5, -7, and 2 respectively, then A has the potential to increase its market share by an additional 5% to 35% (a net increase of 100,000 customers), whereas organisation B is at risk of losing 7% of its market share to finish at 43% (a net decrease of 140,000 customers), and C has the potential to increase its market share by an additional 2% to 22% (a net increase of 40,000 customers).
Simply knowing your growth potential is not enough
This is why we also provide a breakdown of your organisation’s GPS into potential gains and losses of customers. This shows where the potential opportunities lie and where the threats are coming from.
Furthermore, we provide you with strategic advice on how best to realise those opportunities and counter the threats to your organisation.
A GPS study involves these phases:
- initial scoping and fact-finding with the client;
- research, which includes finalising the survey instrument, and administering it to our client’s customers and competitors’ customers;
- analysis and reporting, where we use our proprietary methodology to understand the data, and develop strategic recommendations; and
- workshopping the study findings with key stakeholder groups.