Originally published by Proxima, Guy Strafford & Jonathan Cooper-Bagnall writes...
As key indicators of market growth point skywards and business confidence increases, boards are looking to align every aspect of their business to the wider growth agenda. But, for many of these companies, not all of their internal functions are able to shift their sights from defence to offence at the same time (or at all, in some cases). This creates a disconnect between the board’s ambition and the operational reality – a common source of frustration for many senior executives.
So, why the sudden shift from defence to offence? New statistics from a number of key analysts indicate that the economy, and in turn business confidence, has turned increasingly positive over the past month. Just last week the OECD “sharply” upgraded its economic forecasts for the Eurozone. And, while there continue to be many conflicting reports; for the UK in particular, the key indicators of market growth, consumer confidence, business confidence and M&A activity all appear to be heading north, while inflation and interest rates remain relatively flat. These conditions provide businesses made lean from the recession, a key opportunity for growth.
However, although welcome, these market changes bring with them a new set of challenges for corporations the world over. Times of economic growth require new objectives, strategies and management practices. Ensuring that the business and all its functions are aligned to the overarching growth agenda is a complex task.