When Growth Stalls
The following study from Harvard Business Review revealed patterns in the incidence, costs, and root causes of growth stalls.
Most stalls occur for reasons that are both knowable and addressable at the time.
What the exhibit demonstrates is that the vast majority of stall factors result from a choice about strategy or organizational design. They are, in other words, controllable by management.
Further, even within this broad realm, nearly half of all root causes fall into one of four categories:
The inability of a firm to respond effectively to new, low-cost competitive challenges or to a significant shift in customer valuation of product features.
2-Innovation management breakdown.
Chronic problem in managing the internal business processes for updating existing products and services and creating new ones.
3-Premature core abandonment.
The failure to fully exploit growth opportunities in the existing core business.
4-Talent bench shortfall.
A lack of leaders and staff with the skills and capabilities required for strategy execution.