It’s often said that ‘change is the only constant’ in life. We would like to propose a variation to this statement that states; “Growth is the only constant in life.” Even in organizations, what’s happening is growth, same goes for individuals. And growth as we have now come to know it, it’s not uni directional. It tends to replicate what Schumpeter’s creative destruction.
Growth happens in accordance with DNA. For organizations, that’s the purity of the initial idea that formed this organization. Growth also happens in reaction to the growth of the externalities, of the surroundings. For a company, this is a reaction to the competitors’ own growth, to the market growth etc. Growth is of two kinds; the intentional actioned growth (DNA) and the other is the reactive response.
As we have argued, growth is better in the creative destructive format. You kill some things then replicate others. You see this in cell division, in viral growth, in all other forms of growth.
Growth has an imbibing aspect. Things grow by eating up other things. We commonly call this mergers and acquisitions (M&As). But there’s also imbibing by acquiring the right talent, moving into the right markets, having the right ideas.
Things also grow through discontinuities. In other words, they die. They cease to exist any longer in forms by which they were originally known. The growth curve eventually inverts, and that’s when the destruction side to growth tilts the curve. Things can’t keep growing uni-directional forever. A company can’t have an infinite expansion. This explains the bursts. Growth has a proportional aspect.
If you are reading this and feel lost as a strategist, stay with us, we are forming the ground for the ‘Growth Strategies.’ In the next series, we shall make the attempt of defining the growth law. We believe an understanding of this holds the key to unlocking growth in organizations. A way to rethink why organizations grow. But also for individuals and societies.
We’ve laid down some aspects:
- That growth is according to the DNA of organizations, of people, of societies.
- Growth has a creative destruction element.
- Growth has inversions and discontinuities.
Thus, a Growth Strategy is one that articulates the DNA of the organization. It defines what will remain true. All strategies reflect organizational DNAs.