Goal Core · Long term goals · Module

Direction of growth

Whether the ambition is reached through existing markets and offers, new offers, new markets, or genuinely new ground. Naming the direction is what makes the risk visible.

The idea

How it works

There are only a few directions growth can come from, and they differ enormously in risk. Selling more of what you have to who you already serve is the safest and the most quickly exhausted. New offers to new customers is the riskiest, because both halves are unproven at once.

Most growth plans are a mix, and the mix is usually implicit. Making it explicit tends to reveal that the plan depends far more on the riskiest quadrant than anyone intended.

Working with it

In practice

  1. 01

    Split the ambition by source

    How much of the growth is expected from each direction? Rough percentages are enough to make the point.

  2. 02

    Rate the risk honestly

    Anything involving a new offer and a new market at the same time is a different kind of bet, and should be funded as one.

  3. 03

    State what has to be learned

    For each direction, what does the company not yet know that the plan assumes it does?

One level in

The components of direction of growth

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The growth split

    The expected contribution to the ambition from each direction.

    Learn
  2. The risk rating

    A stated view of how proven each direction is for this business.

    Learn
  3. The learning list

    What has to be found out before each direction can be relied on.

    Learn

A plan where most growth comes from the least proven direction is not automatically wrong. It just needs to be funded and staged as the bet it is.