The most vital investment for any ambitious entrepreneur
The development of an ever improving business on the long run depends highly on the ability of an organisation to elevate inside talent to a higher level. Attracting talent from outside can facilitate growth and inspire new developments, but to our opinion the robust development of any company also requires a development path for internal talent that is aligned with the growth rate of the company.
In the process of building an ever flourishing company, the leadership team should guard the effective exploitation of the running business and simultaneously develop new initiatives for the future, because any success has a saturation point in the market and way before you reach that point the company needs to be ready for a next growth phase. Every ambitious entrepreneur is aiming for the "red curve".
This requires a strict policy to seek for new growth opportunities constantly and divest from activities with a declining growth rate. Every leader faces the dilemma to assign his key players to improving the running business or to the development of new initiatives. This can be completely new value propositions, but also new ways to approach the existing market.
In many organisations it is always the same resource that is overstretched. Usually the ones that are crucial for the existing business, are the most resourceful people in the implementation of new business models and in the development of new markets. Usually they know the market and the company best.
Strategically your key human resources are the ones that determine the feasibility of your future growth. Knowledge can be in-sourced if necessary. Resourcefulness and experience in a specific market with matured methods and systems need to be developed internally. They are decisive for differentiating the company from competitors.
Therefore ambitious leaders and companies focus their investments in:
- The development of new talent that increases the leverage of the existing core team.
- The further development of the core team in order to increase their span of control.
If your core team cannot keep up with your growth ambitions, decline is unavoidable.