Growth and change: 4 steps to sustainable profit increase

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Company not only have to be prepared to introduce new things, but rather not to do old things anymore. The latter is the real challenge to get into “Grow with the Flow”.

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Here writes for you:


Claudia Simon Best of HR –®Claudia Simon is the managing director of VISTEM GmbH & Co. KG.


From the author:


Building Competitive Advantages: 4 Steps

which Company Do not want to build decisive competitive advantages and turn them into lucrative businesses?

Only through growth and profit can employees' jobs be secured and investments made. What many companies underestimate is the need for change.

1. Theory of Constraints

If the goal of a company is to change and improve established approaches, the theory of constraints (TOC) is a tried and tested means. Their success depends on the willingness to question everything. It is important to have a structured approach:

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  1. First, analyze the initial situation (Current Reality)
  2. then define the goal (Future Reality),
  3. develop the way (Strategy and Tactics of Transformation)
  4. and finally implement this path (Execution).

From the objectives and implementation steps, the companies learn to start again at first. This is intended to bring about a sustained increase in performance and create a stable basis for the next step.

2. Profit generation through innovation

Without innovation and further development, even the strongest company will eventually become detached from the competition.

The German economist Jürgen Hauschildt, one of the pioneers in the field of business innovation research, but says it is not enough to bring forth an idea - only the sale and / or the use of an innovation of the invention. Innovative products generate growth and ultimately more profit.

3. Master challenges

Companies need to meet a number of challenges to ensure growth:

  • The resources are scarce. Not enough can be developed with the resources available. More resources will be requested from the R & D department and the finance department will not be able to absorb any additional charges.
  • The cost of resources in the R & D department is high, because they are extremely educated and capable scientists / engineers. In addition, there are costs for machines and apparatus that are used by the resources in research and development.
  • There is a lot of time between an idea for the development of a product until its successful launch on the market. The longer the development phase lasts, the greater the risk that a competitor will bring the development to market first.
  • Every innovation brings with it risks: Many development projects are not completed, do not arrive or do not sell. The few successful projects have to compensate for the losses.
  • Innovation projects can be poorly planned. Security bugs are scheduled to make projects more reliable.
  • The executives complain that the company generates too few creative market ideas. The often clear focus on risk management dampens creativity. High costs of failure also slow down the potential.

To deal with these challenges, a process must be developed that addresses the speed, success and reliability of innovation projects.

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4. One for all and all for one

Business units compete with each other, which can extremely disrupt productive work. It is the responsibility of top management to give all projects the resources they need to accomplish the tasks they want.

And then, to the extent that they are needed. Competition is unfortunately not the company. On the contrary, in order to be successful as an organization, it is important to avoid unnecessary tensions. Success must be understood as a holistic vision.

Conclusion: Grow with the Flow!

The use of breakthrough solutions allows companies to earn money with projects. Fundamental improvements and innovative strength lead to the development and implementation of sustainable growth strategies.

This enables companies to achieve their goal quickly and sustainably: a significant increase in capacity and results = Grow with the Flow!

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