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Private equity (PE) firms have a proven approach to identify areas for revenue growth, value creation, and cost reduction: due diligence. But companies rarely use this same approach in the execution of their own growth strategy. This is a missed opportunity. The same due diligence skills and tools can be found in most large companies, but they are usually siloed in the corporate development team — the folks who handle M&A, who rarely have a chance to apply their expertise to a company’s ongoing operations. There’s no reason to limit due diligence to the context of an acquisition. In this article, the authors cover a few steps from the due-diligence playbook that all companies can apply to growth strategy.
We understand the frustration of waiting for growth plans to kick in and deliver the promised results. Too often, plans laid in the autumn and enshrined in the budget don’t start producing results until well into the next year — and then, because of the slow start, deliver a fraction of what they promised. Moreover, growth initiatives tend to focus narrowly on specific areas, yielding short-term gains without enhancing overall enterprise capabilities for sustained growth.
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Copyright for syndicated content belongs to the linked Source : Harvard Business – https://hbr.org/2024/03/to-accelerate-growth-analyze-your-company-like-an-investor
