As experienced turnaround managers we are one thing in particular: results-oriented! And a growth strategy that actually deserves its name is set on exactly one thing: lasting positive results – irrespective of whether it is growth from the turnaround or the careful preparation of a new, stable growth story. The two dimensions through which growth becomes projectable and controllable are called business risk and designated speed of growth.
First, the following variables have to be assessed from an economic point of view: potentials and opportunities of existing products with existing customers, potentials regarding customers that have not been reached so far or have been lost, and the development of markets in which a company has not been active before. Secondly, one has to assess which innovations regarding products or solutions are possible with the existing resources. And third, one has to evaluate whether the development of new markets with new products, leveraging existing or new resources, is advisable or too risky. Pragmatically, we initially concentrate on that which is most obvious – internal, organic growth.
We focus on organic growth that comes from the core business. The best kind of growth is profitable growth. And profitable growth is almost always organic, i.e. internal growth (see illustration), which in turn results from a company's core business. We define core business as the business with the highest value proposition in the last three to five years and a particular relevance for the future.