An Executive Study Group organized by the Chinese University of Hong Kong (CUHK) and the Hong Kong Science and Technology Parks Corp. (HKSTPC) is a monthly gathering which facilitates networking and interactions between academics and senior executives of leading enterprises. The topic entitled “7 Ways to Grow More with Less” was held on 17 January 2011.
Mr. Mark Lee was the speaker and his talk was included “The Granularity (Nano-View) of Growth”, “Winemaker's Logic”, “7 Ways to Grow Through Focus” and “Group Discussion”.
In the beginning, Mr. Lee explained why growth of company was so important. It was because the company might be acquired by other high growth rate company. Then he explained some common pitfalls for the growth.
i) Impact of the Economic - Low economic environment cause low growth?
ii) Pitfalls of Blind Expansion - seek growth by extending existing product lines
iii) Impact of Being More - Increase complexity of the organization and operation
Then He introduced the Portfolio Momentum Strategy which included "Organic revenue growth", "Learning from the skills of financial industry", "Through market growth of the segments represented in the portfolio", "Select acquisitions and divestment" and "Create market growth by introducing a new product category".
The diagram showed the different growth rate between Industry Level and Company Level. It explained that the positioning was very important.
Mr. Lee explained the traditional marketing analysis was not enough.
It should be down to Nano Level.
It did match the Winemaker's Logic that business leaders needed to cut back on marginal products, brands, and markets so as to improve the quality of growth.
Mr. Lee briefed the 7 Ways as follows:
1. Discovery: Figure Out What Works
(Understanding the company strength and sharing the successful factors)
2. Strategy: Focus through Lenses
(Concentrate resources on the best areas and prioritize of opportunities)
3. Vision: Find a Simple Hook
(Hook of vision could be a slogan to get everyone behind the strategy)
4. People: Unleash the Potential
(Freedom and Creativity Thinking)
5. Execution: Clarify and Delegate
(Close to customers and consumers such as decision of price)
6. Organization: Build Collaborative Networks
(Set up collaborative networks formally and informally)
7. Metrics: Manage Numbers and Tell Stories
(Simple KPI such as Sale, Profit and Cash Flow; and CEO as a Story Teller to propagating the culture)
Finally, Mr. Lee concluded that first 3 steps were classified as "Nano Analysis" and the last 4 steps were classified as "Bacteria Incubation". After that the group discussion was performed through participant's identification of which steps were the most difficult and the most easy.
For more information:
The Centre for Logistics Technologies and Supply Chain Optimization, CUHK: http://www.logitsco.cuhk.edu.hk/