From my experience working with many companies leaders that disable new growth opportunities ascribe to one of two strategies: Strategy du' jour, a new strategy for new growth seemingly every day. This "seat of pants" approach creates activity but rarely results in accomplishment. On the other end of the spectrum is Paralysis by analysis, companies that measure and monitor everything. Solid strategy to analyze and monitor past performance but creates a risk adverse culture unwilling to try new and different ways to grow the business. It is important to identify key business drivers are critically important factors that determine, or cause, an increase in value or major improvement of a business. A key business driver is something that has a major impact on the performance of the businessâ€¦ and needs to be constantly updated to be in sync with the latest trends in their markets, and technology. A whole range of internal and external factors affects the performance of every business and the secret is to focus on a handful of key drivers. For most companies key business drivers are related to- major cost-efficiency, growth-effectiveness, and customer satisfaction. The four fundamental drivers for success are; innovation, quality, speed, cost competitive.
- Innovation is important because in a changing world new products and services help the organization gain a competitive advantage by being first to market.
- Quality is important because organizations grow on repeat and referred business.
- The product or service must excel for the client to recognize and return for more.
- A company's reputation is esteemed by excellent products and services. It is key to developing new clients.
- Speed relates to how quickly a company can develop and release a product or service to the market. How quickly can we respond to changes in the market?
- Cost competitiveness means that your costs are kept within a fair market price to attract and retain customers by giving them high value.
Each of these four drivers is important for business success.