Levers of Organizational Growth - Role of Leadership and People Practices

Organizations (Orgs) grow using different levers.

There are orgs that have experienced superior growth because their product / offering is superior. Both in terms of value to the customer and the perceived value (with proper packaging and positioning). Apple, Google etc. have distinctly had this advantage.

Orgs have also experienced superior growth because of strategic positioning and agility. IKEA and Netflix are some of the examples.

Technology has also been a primary driver for superior growth of some organizations. Uber, Tesla are examples.

Then there are examples of superior growth primarily with leadership and people practices. Microsoft with Satya Nadella and Barry-Wehmiller with Bob Chapman are some of the examples. Closer home, Dr. Anil K Khandelwal demonstrated it during his tenure as the Chairman and MD of Bank of Baroda.

Needless to add, the examples cited in each of these categories are only representative names. I have no doubt that there are many other names in each category that I do not know about.

Then there are orgs that are quite strong in the most of these categories. And they become iconic companies e.g. Google, Microsoft etc. You cannot imagine modern life without them.

Ask #GenAI, which of these levers managed well, has highest impact on growth of organizations, it gives these estimates:

1. Leadership and People Practices: 30-40%
2. Strategy: 20-30%
3. Technology: 15-25%
4. Products/Services: 10-20%

And it adds “While all levers of growth are important, leadership and people practices have a multiplier effect, amplifying the impact of other growth levers” and that "…these estimates vary depending on the organization, industry, and context."

Ask #GenAI again, which of these levers requires least financial investment, the answer is:

"Among the various levers of growth, leadership and people practices often require the least financial investment. Here are the rough estimates of relative financial investments:

1. Leadership and People Practices: 5-10%
2. Strategy: 10-20%
3. Technology: 20-30%
4. Products/Services: 30-50% "

Again, with a rider “…these estimates vary depending on the organization, industry, and context.”

So, leadership and people practices require least investment and have highest impact.

Do you see a strong case for greater focus on leadership and people practices?

I do. Is it receiving the attention it deserves?

I believe we can do a lot better. Let’s hear other perspectives. #organization #growth #leadership #peoplepractices hashtag #entrepreneurs #ceos #cxos