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Where you start matters in determining where you finish the year

By Mark P. McDonald | April 06, 2021 | 0 Comments

Tech and Service ProvidersStrategyManagementLeadershipEconomy2021-2022Corporate Strategy FormulationProduct Portfolio Vision and Strategy

Leaders with growth plans for incremental revenue gains, sequential improvement in customer retention and improving sales close rates need stability in customer needs and market stability. Winners like the presumption of stability as past success portends future growth. Others tacitly accept this assumption either because they mistakenly see themselves as winners or only measure market share.

Strategy sees competition is a race, each company at the same starting line.  It is not. Analysis of 206 high-tech companies revealed a staggard start with companies in one of four positions: resilient, fortunate, hardworking and challenged.

Position matters because change matters. Resilient firms are the strongest with effective external and internal performance. Hardworking companies have strong operations but weaker external effectiveness. Fortunate and challenged firms are at risk with below average internal effectiveness.  They want stability, change puts them at greater risk.

Each point has different growth expectations and strategies. Knowing your starting position is foundational to strategy. Market share is backward looking and unactionable. Product leaders need a simple and clear way of understanding where they stand and evaluating others in the race. Take the High-Tech Market Position Benchmark. Know where you stand and set your strategy accordingly.

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