We talked to Stian about his perspectives on organic growth and the importance of developing and maintaining an attractive and profitable product portfolio.
- Organic growth – do businesses have the right focus? “Across industries, we see that increased complexity in companies’ delivery models takes management focus away from the single most important aspect of all businesses – top line growth. I am often amazed by the fact that management spend most of their time on “internal issues”, even though revenues are declining. Without dedicated focus on top line growth, businesses often stagnate. Growth drives innovation. Innovation creates energy. With the right focus, energy translates into being good at executing. And, in most markets, the best executers win.”
- What are some of the issues your clients are struggling with in organic growth? “We don’t talk about growth at any cost. Growth must be profitable. One area in which most companies struggle is maintaining an attractive and cost efficient product portfolio. Increasingly rapid industry innovation cycles drive innovation, which, in turn, results in adding products and services to the existing portfolio. Coupled with poor portfolio management, we see that product portfolios become large, complex, costly, and partly unattractive. Without a clear value proposition in the market, it is hard to win. Most companies would benefit greatly from streamlining its product portfolio. A streamlined portfolio will be more attractive and less costly. A win-win.”
- How do we help our clients with organic growth? “We work with growth issues across many different industries and with different sized companies. Commonly, these projects focus on improving the product portfolio through reducing the number of products, and aligning the products to the needs of the customers. Often we start with developing an improved customer segmentation model. By better understanding the segment needs and behavior, it is easier to “cut & align” the products. Coupled with a more systematic strategy for innovation and product development, growth is inevitable.”