{"id":39552,"date":"2020-09-07T07:00:56","date_gmt":"2020-09-07T05:00:56","guid":{"rendered":"https:\/\/strtgy.design\/articles\/the-hard-truth-about-growth-strategies\/"},"modified":"2020-09-07T07:00:56","modified_gmt":"2020-09-07T05:00:56","slug":"the-hard-truth-about-growth-strategies","status":"publish","type":"post","link":"https:\/\/strtgy.design\/en\/strtgy-notes-en\/the-hard-truth-about-growth-strategies\/","title":{"rendered":"The hard truth about growth strategies"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Hey, happy Monday,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I&#8217;m back up and running 100 percent, are you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I am writing this note just back from a magical place in which I stayed with my family. One of those vacations that when you return home leaves a little emptiness in your stomach, like when September was approaching as a youngster and you had to go back to city life. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I&#8217;m sure you have your own magical place, too. It is not important which one it is but I want to invite you to think about this:   <\/span><\/p>\n<p><b>What can you do every day to recreate that feeling?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can you extend that good habit you got?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can you taste those flavors again? Smell those scents? <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can you wear that dress you bought there?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Can you not get angry if the navigator makes you take a wrong turn?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">No one forces you to return to the life you had before you left. Just as you created it, you can decide to change it. Yes it is true you already have commitments, deadlines to meet and this year will be even more difficult, but how you deal with them will depend only on you.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Forgive the digression, I did not want to be your motivator.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rather, I want you to understand that you always make the choice.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In life and work.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bring some sunshine inside, however.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, let&#8217;s begin.<\/span><\/p>\n<h2>5 points +1 of your next growth strategy<\/h2>\n<p><span style=\"font-weight: 400;\">Vacations always make us realize that it is possible <\/span><b>live <\/b><span style=\"font-weight: 400;\">in a different way<\/span><span style=\"font-weight: 400;\">. <\/span> <\/p>\n<p><span style=\"font-weight: 400;\">Here at STRTGY, however, I can help you understand that you can always <\/span><b>work<\/b> <span style=\"font-weight: 400;\">in a different way<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I&#8217;d be happy if you started September without that feeling of investing time and energy on projects that have nothing strategic to do and were probably given to you by the same managers who are now wondering what you&#8217;re doing&#8230;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Achieving outstanding results is something unpredictable. There are no recipes to apply to the letter, and the result is not assured even when you follow, point by point, a Jamie Oliver video recipe, let alone for your business! <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Exceptional results, however, are promised in all the PowerPoints that executives package to get their budgets approved for projects in which no one is perfectly clear how they will contribute to the company&#8217;s strategy, often wasting time, money and, unfortunately, talent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We are now entering the last quarter, shortly you too will be asked to state which direction you should go in 2021. Use these tips, at least with your team. <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Define success<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Communicate your goals by identifying maximum 3 numbers that everyone needs to look at to understand that they are going in the right direction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What should these numbers look like in 3 years?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consequently, what should these numbers look like this year and next year?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do not confuse these numbers with the <\/span><b>north-star metric<\/b><span style=\"font-weight: 400;\"> or with the <\/span><b>OMTM<\/b><span style=\"font-weight: 400;\"> (one metric that matters) that you often read in the carousels pulled off on Instagram and LinkedIn. <\/span> <\/p>\n<p><a href=\"https:\/\/strtgy.design\/evento\/strtgy-meeting-5-strategy-before-execution\/*%7CEMAIL%7C*\"><span style=\"font-weight: 400;\">We will talk more about this on Thursday<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Instead, choose the thing that most closely matches your oxygen. Turnover, margins, maximum costs, &#8230; ?   <\/span><b>This is where you need to unlock growth.<\/b><\/p>\n<h3><span style=\"font-weight: 400;\">2. Redefine incentive mechanisms<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The fastest way to change people&#8217;s behaviors is to change their incentives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of rewarding the behavior of those who finish tasks, try rewarding more those who learn from what they do.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about it&#8211;is it useful to end an activity if in the midst of it it is clear that it is no longer useful or has the potential to be harmful?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Organizations tend to reward risk-takers, but this only works in stable situations.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under conditions of uncertainty such as those facing our businesses, it is more important to understand &#8220;what not to do&#8221; than to continue &#8220;doing.&#8221;  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember that it is always more important to take into account the <\/span><b>costs of failure<\/b><span style=\"font-weight: 400;\"> not the <\/span><b>frequency with which teams fail<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is more convenient to reward those who have failed early and often but spent little than those who have failed a few times while spending a lot. Don&#8217;t you think so?<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Allow everyone to make decisions, even when you are not there<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If the strategy is not clear there will be those who will go north and those who will go south.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The project makes no progress except for cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Set people free to make decisions in the common good of the project to go faster.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I provide you with a little tool that I have called the <\/span><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1yb42UZkP_5s8GlBUGDuWbRzDER-8rkNeOxfh59LC6uY\/edit#gid=0\"><span style=\"font-weight: 400;\">STRTGY Decision Matrix<\/span><\/a><span style=\"font-weight: 400;\">. <\/span> <\/p>\n<p><span style=\"font-weight: 400;\">Feel free to copy and use it whenever you want.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Send it to your colleagues today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is very simple to use. In the &#8220;Criteria&#8221; column make a list of shared criteria aligned with the goals in step 1 and assign a weight. Describe exactly what aspects are important to consider to make a good choice.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the columns describe the options available to you and a number from 1 to 5 indicating how confident you are that that option allows you to approach that criterion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choose the option with the highest score.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember that any decision is never good or bad, it is always &#8220;good enough&#8221; until the data prove otherwise; what matters is the speed with which, by acquiring them, you can react. And that brings us to the next point. <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Set checkpoints not milestones<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Organize a clear agenda in which it is important to review results not the amount of tasks accomplished (this is where agile collides with reality).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Block off specific times on the calendar now where those involved in the projects share their impact on the numbers, what they have learned and their solutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A milestone requires that you have reached a certain goal. Heavy as precisely a milestone, the team stops or continues until it is reached. It is the exact opposite of the agility we seek.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Checkpoints are times when criteria are reviewed or changed. There is no point in continuing in one direction if you do not receive confirmation. <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. Invest only what you can afford to lose<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Innovation, we know, is high risk, but innovating is not gambling.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We do this because the reward is the sustainability of our enterprises.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Budgeting time, in addition to being an incredibly expensive process, is one of the most inefficient for promoting innovation. At this time of year, managers ask to bet on their horses. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Go back in time to this period but from the year just past. How useful was that budget? Who was able to predict this pandemic? How easy was it to respond? There-you&#8217;ve answered yourself.    <\/span><\/p>\n<p><span style=\"font-weight: 400;\">What I suggest instead is that you provide your team with all the resources they need to reach the next checkpoint.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like in video games in which you have to get the little star to get extra time and continue the race.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Invest only what you can afford to lose. If the numbers prove you right-continue. If not, go to the next step.  <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">+1. Continue or quit and document<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It may be the case that at each checkpoint everything is falling into place and you and your team are able to chalk up success after success on your path to growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The opposite could also happen.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the hard truth, but this is where the game is won!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are not in an organization that believes in innovation the closure of a project is always experienced painfully. The decision is pushed as far away as possible and everyone denies they were there. The work is buried. And everyone feels they have tarnished their track record.   <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are in an innovative organization, on the other hand, divestment of a project is part of the planning process and is celebrated as well as executed with discipline.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Document the journey and share the path that led you there.  <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What initiative worked and what did not.  <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What capabilities the organization has been enriched with.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How much was saved.<\/span><\/li>\n<\/ul>\n<h2>It&#8217;s not theory! Learn from the growth hacker of growth hackers! <\/h2>\n<p><a href=\"https:\/\/strtgy.design\/evento\/strtgy-meeting-5-strategy-before-execution\/\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-2111\" src=\"https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5-300x159.jpg\" alt=\"\" width=\"300\" height=\"159\" srcset=\"https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5-300x159.jpg 300w, https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5-600x318.jpg 600w, https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5-1024x543.jpg 1024w, https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5-768x407.jpg 768w, https:\/\/strtgy.design\/wp-content\/uploads\/2020\/08\/sm5.jpg 1189w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">These steps form the basis of many companies&#8217; growth strategies, but I want you to take away any doubt that this is just theory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I recommend that you carve out less than 60 minutes of your time, <\/span><b>Thursday, September 10 from 6:30 p.m.<\/b><span style=\"font-weight: 400;\">, to meet with <\/span><b>Pedro Clivati, Head of Growth at GrowthHackers.com<\/b><span style=\"font-weight: 400;\">, the world&#8217;s largest community on growth hacking founded by Sean Ellis. <\/span> <\/p>\n<p><span style=\"font-weight: 400;\">I have provided a room on Zoom where we will meet privately with him and talk about Growth Strategy.  <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Places are limited, so if you have not already done so, I invite you to reserve your place by visiting this link and read the program for his talk. Those who wish can stop by the Q&amp;A session with us. <\/span><\/p>\n<p><a href=\"https:\/\/strtgy.design\/evento\/strtgy-meeting-5-strategy-before-execution\/\"><span style=\"font-weight: 400;\">Reserve your place<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Only if you register will I be able to send you the link to participate in the Zoom call with Pedro.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I will send you the coordinates for access 15 minutes before the meeting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">See you on Thursday&#8230;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good work!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Make yourself heard.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>7:05 reading &#8211; Goal setting, incentives, decision making, checkpoints and how much to invest<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","footnotes":""},"categories":[97],"tags":[],"class_list":["post-39552","post","type-post","status-publish","format-standard","hentry","category-strtgy-notes-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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