In an earlier article ("
Here, we're going to move past the "what" to address "how" segment leaders are cultivated. I share a three-step process that changes mindset, behavior and, ultimately, results. It's important to note that although this is not a leadership development exercise, leadership development is a by-product of partners learning how to drive strategic growth.
Step 1. Conduct research and analysis
- Financial analysis. Until you know the source of your success (or lack thereof) there's nothing you can do to impact it. It seems intuitive that knowing the numbers is an essential first step, but I'm often surprised at firms that have no granular analysis of where their revenue and profit is coming from. Start with a deep, thorough financial analysis of your existing segment — either industry or service line — to set a baseline for growth strategies.
- Market analysis. Follow this with an equally robust analysis of the market itself. Start with a clear definition of the market — what's included and not included. Then determine the size of each subsegment (total number of companies/buyers). For example, subsegments in manufacturing might include plastics and rubber, tool and dye, and forging and fabrication, among others. Market size is the No. 1 indicator of good market conditions. Not much matters if there aren't enough fish in the pond to make your efforts worthwhile! And all things being equal, you might as well fish where there are 10,000 fish versus 1,000.
- Competitive analysis. Who's occupying the space you want to dominate? Study competitor websites — inside and outside your market. Identify where you fit in the market relative to competitors. You'll even get to the point where you'll interview competitors regularly, strange as it may sound to some of you!
Step 2: Perfect your strategy
If you already own an existing market, assess your strategy. Is it working optimally, or is it time to pivot or refine in order to increase revenue and profit? Focus on the three elements of strategy: services, targets and distribution channels, making sure these are in alignment. Refine your strategy by continuing to conduct interviews, while raising your own visibility and credibility. By constantly scanning the landscape, you will be able to transform issues into innovations, thought leadership, channel alignment, and new low-hanging-fruit opportunities.
Step 3: Execute
Having conducted research and analysis and refined your strategy, the third step toward becoming an outstanding business-unit leader is execution. It's now that you decide what you will do within the market to drive revenue and profitability. Execution is a matter of continuously aligning your interests with those of your channels and treating your channels as if they were your clients.
The tools you use have everything to do with how you best accomplish your goals — finding buyers in great quantities, offering something unique they need and are willing to pay for, and developing and closing opportunities.
How do you know you're there?
If your goal is to become a segment leader, how do you know when you've reached it? Look for changes in mindset, such as these:
- From viewing growth as extracurricular, to seeing it as core curriculum.
- From feeling you know everything, to recognizing you have much to learn.
- From embracing the status quo and focusing on compliance, to achieving an explorer's mindset and discovering creative growth strategies.
- From relying on referral sources, to cultivating effective distribution channels.
- From focusing on tactics, to pursuing strategies.
- From perceiving the market from the inside out, to understanding the market from the outside in.
Mindfully pursued, this approach will lead to changes in behavior, and, ultimately, to tangible bottom line results as you reap the benefits of sustainable strategic growth.
