Strategic Planning for Exponential Growth

There is no clear definition on what strategy is. It originates from from Greek στρατηγία stratēgia, "art of troop leader; office of general, command, generalship" -source Wikipedia .

Most models for strategic planning describe complexity through classification of different types of interests, forces and strategies. We aim for simplification. In our article on “Strategic Planning for exponential growth” on a high level of abstraction we recognize the following dilemma as leading for strategic discussions: 

A company strives for sustainable growth of ROI. In order to achieve this, ideally it realizes an increase of income and a reduction of operating expenses and capital employed at the same time. The dilemma is that the first requires additional scale, whereas the second requires downsizing.

Therefore the focus of any strategic discussion should be on which activity to scale-up and which to downsize. Ideally a company syncs so seamlessly with its environment that this evolves into an ongoing process of extending valuable activities and phasing-out activities that are end-of-cycle. The vision of the leadership should aim towards maximum leverage of core competencies in order to generate exponentially more value in an ongoing process of exponential growth. The most profitable Strategic Leverage Point of any company is the resource which truly and significantly elevates the Strategic Leverage Point of a large group of potential customers in a highly scalable manner.

Leverage and scalability are the two truly relevant metrics for strategic innovation. There should be measurable and significant economies of scale and the costs of scaling up should be marginal against the additional cashflow. 

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