The Rising Stars survey highlights the value-creating strategies being used by successful private enterprises in WA, writes LUKE MARTINO.
According to the most recent Deloitte Western Australian Stock Exchange Index, public companies in WA have achieved substantially faster growth than public companies in other States
The Deloitte WA Index has grown by 30.1 per cent in the past two years compared with growth in the ASX All Ordinaries Index of only 8.5 per cent.
While growth is strong in the public company arena there has also been strong and consistent growth in WA’s private sector.
We all understand that spectacular growth performance is not easily achieved and even harder to maintain. The Rising Stars have achieved top growth performance via a commitment to growth that is embedded throughout their organisations.
The Rising Stars survey supports a key finding of Deloitte global research that suggests consistent profitable growth is achieved when an enterprise manages itself around three interconnected principles:
• a strategy to grow – what is the direction, what is the action plan to execute this strategy;
• the capability to grow – talented people, funding new product processes, intelligent use of technology and a plan to change the organisation structurally as it grows; and
• a commitment to growth – employee participation and an open environment to allow the whole enterprise to embrace a shared vision, and operate together to achieve it.
Insights provided by the Rising Stars form a useful benchmark for all private enterprises aspiring to become tomorrow’s leaders. Key findings of the survey include:
• strong organisational culture is integral to the success of all of the top growth enterprises;
• leaders of fast growing private enterprises aspire to be recognised as employers of choice;
• a keen focus on product development is vitally important. Deloitte global research demonstrates that a desire to translate research and development into market leading products is vital to a company’s sustainable growth strategy;
• clear alignment of goals is essential to the effectiveness of all strategic alliances; and
• Top growth enterprises use technology to leverage their growth.
The top two issues affecting the growth of these successful WA business over the next 12 months are: domestic economic conditions and confidence; and the ability to raise capital.
The results of the Rising Stars survey complement international research by Deloitte on the metrics that successful growth companies observe to predict their future success.
This breakthrough research found that companies overwhelmingly use leading indicators, or metrics that act as predictors for future success. They use leading indicators to monitor their progress towards goals, shape short-term strategy and adjust longer-term objectives, and achieve balance between their productivity and growth objectives.
The indicators used by companies can be classified into five broad categories – strategy, finance, sales and marketing, product development and human resources. The focus on these categories at the various stages of a company’s growth does vary, however.
Finance, specifically the ability to raise capital and manage cash, is a key focus area for start up companies.
Human resources, specifically employees and organisational matters, become more important when the company has completed the start up and initial growth phase.
This is likely as a result of the company trying to evolve its corporate culture and maintain a focus on developing its customer base and becoming operationally sustainable.
By the time the company has become well established, its focus becomes much more on striking an acceptable equilibrium between growth and productivity objectives.
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