Most organizations view growth strategies as a fundamental underpinning to future viability. True growth strategies are rooted in the dynamic nature of
markets which produce changing and evolving needs for services.
There are several cautions to pursuing growth strategies. Growth strategies should not be used to divert attention from unresolved internal issues. This is
often a short-term fix. Growth strategies may also be erroneously rooted in management special interest areas, not market-driven.
It is essential that growth strategies be anchored in the organization's mission and vision and that growth is seen as a means not an end.
Organizations generally grow in two ways. Concentration strategy1 focuses on the current portfolio and reaching out geographically or to new customers. A
diversification strategy2 focuses on adding new programs or services.
The following is a list of key issues in considering a concentration strategy:
Does our organization have a strong comparative advantage over other organizations in the production and delivery of certain programs
and services?
Is the demand among customers for these programs and services likely to remain strong for the foreseeable future?
If it seems that demand will be strong for the foreseeable future, how can our organization serve more people with its programs and services?
Is it possible to strengthen our organization's already strong position vis-a-vis other providers?
Would it be helpful for our organization to gain greater control over supply and production of its programs and services?
Would it be helpful for our organization to gain greater control over the distribution channels for its programs and services?
Is it desirable for our organization to extend the boundaries of its service area to include people or regions it is not now serving?
If an organization is considering a diversification strategy, the following are key issues:
Is the demand for our organization's current portfolio of programs and services likely to shrink in the foreseeable future? If so,
diversification might be necessary before the bottom drops out of the market for that existing portfolio.
Does our organization have spin-off expertise; can it apply its skills to the delivery of programs and services that are not currently in its portfolio?
If so, this expertise might be directed toward more fruitful activities as demand shifts away from the organization's current portfolio.
Can diversification open new opportunities for synergy among the programs and services in our organization's portfolio or with other organizations?
Can our organization diversify without losing sight of our core mission? Will diversification help to advance our core mission?
Pyrce Healthcare Group works with organizations to identify sound growth strategies, rooted in mission and vision. Growth strategies are an important component
of strategic planning initiatives, including the identification of market demand and an assessment of relevant core competencies.
