This post was originally published on January 30, 2024 on LinkedIn

Business school teaches us that there are two generic ways to organically grow your revenue: 

• Product-Led: Start with a defined product and find who will buy it

• Consumer-Led: Start with a defined audience and sell whatever they'll buy

Both are viable options. I’m not here to advocate for either one. Instead, I want to focus on the unspoken growth strategies that appear in our professional lives. Ones that are only taught through experience. 

Let’s dive in.

Determinant #1: The Strategy 

Strategy-led growth can be defined as letting a predetermined strategy be the map maker for our growth plans. It usually starts with a statement like, “We need to differentiate ourselves from competitors.” 

One Pro

• It’s Strategy-Based: The work will be rooted in strategy; and while that seems obvious, it’s not a given for all initiatives. 

Two Cons

• Clarity Mirage: Strategy-based statements often give us a false sense of clarity and alignment. In reality, “being different” can be interpreted in a lot of ways.

• Action Pitfall: This might seem like a decisive approach but it doesn’t enable action. If we don’t get into the weeds fast, then that Strategy-Execution Gap is going to hit us hard. 

Does It Work?

As a strategy enthusiast, I'd love to hail strategy-led growth as the top dog. But realistically, it's more complex. Total devotion to our strategy is vital, yet it's not all-powerful. Being unique doesn't guarantee soaring revenue, and low prices don’t ensure a buying frenzy. To make this approach successful, we need to test our assumptions regularly, asking "Does this still make sense? Are we trying to force it?"

Determinant #2: The Idea

Idea-led growth can be defined as falling in love with our idea and then letting that idea be the centerpiece of our growth strategy. It usually starts with a statement like, “Wouldn’t it be cool if…”

One Pro

• The Passion Fuels You: Passion for our idea is a powerful motivator that helps us through the grind. 

Two Cons

• Feedback Blindness: It's easy to overlook crucial feedback, especially when deeply invested in our idea.

• Defensive Instincts: The urge to defend our brainchild can overshadow the openness to constructive criticism. 

Does It Work?

Idea-led growth is a journey of relentless effort, often at the expense of resources. While the allure of transforming a eureka moment into a billion-dollar success is strong, reality often hits hard with setbacks. This path is fueled by passion, driving us to extremes for our beloved ideas. Yet, this passion can blindside us, making it tough to pivot or let go, risking everything on a potentially unviable vision. To avoid turning our dream into a resource-draining odyssey, we should build in objective measures like external feedback and strict KPIs.

Determinant #3: The Directive

Directive-led growth is when someone tells us what we need to grow. It usually starts with a statement like, “We should have more revenue from (fill in the blank).” 

One Pro

• Leader's Directive = Smoother Skies: When the top mandates growth, the runway often becomes clearer, cutting through bureaucratic clutter. 

Two Cons

• Product-Market Fit Takes a Backseat: Less attention can be given to creating consumer value and more focus goes on driving revenue ASAP. 

• Short-Lived Patience: Leaders expect success swiftly, often unrealistically fast. 

Does It Work?

Though I’m not endorsing it, directive-led growth can work. Sometimes, those top-down orders are spot-on, based on insights or data we're not privy to. Yes, it's a jolt to our strategic autonomy, but it's not the end. Leaning towards “How might we make this work?” sparks creative problem solving. Every innovator knows that constraints fuel innovation, so let's focus on what we can control – that’s where the magic will happen. 

Determinant #4: Imitation

Imitation is when our growth strategy is based on copying our competitors. It usually goes like, “Competitor X is doing Y. We should be doing Y.”

One Pro

• Cut into Their Edge: We’re minimizing a point of differentiation for them, and creating a bit of Strategic Convergence in the industry to our benefit. 

Two Cons

• Resource Drain: Copying competitors is a resource drain, diverting valuable assets from our unique growth journey. 

• Forever Defense: A game isn't won by defense alone. WE have to play our own game too. 

Does It Work?

Imitation can be smart for cost leaders boosting their competitive edge, but it's a risky path for those focused on differentiation. While it fosters industry convergence, it's resource-intensive; every effort to mimic detracts from investing in our own path. The key to this strategy is understanding the competition and assessing if their moves align with our goals. Imitation, used judiciously, can be part of a balanced strategy, but over-reliance on it risks stifling our own growth. 

Weighing in on Unspoken Growth Strategy Methods

These unspoken growth strategies may never become universal best practices, but they are certainly in practice. Each approach — whether driven by a strategy, an idea, a directive, or imitation – carries its own set of challenges and opportunities. At the end of the day, we as leaders are responsible for driving the growth of our companies. How we get there depends on a number of factors, both in and out of our control.

Now, I turn to you, the managers, strategists and innovators of today's business world: What’s your take on these growth strategies? Have you experienced the triumphs and tribulations of any of these approaches? Share your insights, stories, and lessons learned in the comments below. Let’s broaden our collective understanding and master the game of growth together.