Good growth: the interconnection between shareholder and stakeholder value, where social, economic and environmental factors combine to create sustainable change.
In a world where acting purposefully matters, businesses need to demonstrate that they can grow in the right way at the right pace. It’s not just about good intentions. It’s about delivering positive outcomes while achieving sustainable, long-term growth. In the current economic climate, striking the balance between profits and purpose is challenging, but it’s a challenge worth facing.
At BGF, the five principles of ‘good growth’ are: lead well, grow sustainably, take thoughtful steps, keep broad minds, go further together. Each plays its part. But how does this translate into the day-to-day?
Leadership
Strong leadership is essential to any successful business. Good leaders set the tone; if they are consistent in their approach, build trust amongst all stakeholders, and have the ability to guide and inspire, the rest will follow. Accepting that you might not get it right every time is part of the process, but striving to get the best out of everyone will ease the way for good growth.
Structure
As with any form of growth, there needs to be a transparent strategy in place – a framework that allows for thoughtful governance and sustainable growth. This includes defining and communicating what your values, mission and vision are for the business. They will form the bedrock of any organisation, the fabric of a business that provides everyone with the guiding principles in which to deliver good growth.
Be open minded
Never be afraid to take a different path to the tried and tested route. Creating change is not easy, particularly if you’re doing something for the very first time, but by embracing change and gaining buy-in from everyone invested in going on that journey with you, opportunities will present themselves.
Collaboration
In order to scale and grow responsibly, collaboration is key. Achieving good growth is a collective effort and requires insight and inspiration from a wealth of sources. This includes non-executive directors – people who bring a different perspective, a positive influence; individuals who are dedicated to entrepreneurial growth and value creation.
The ‘Why’
Good growth is much more than numbers on a spreadsheet. You must have a clear sense of purpose; you must define what impact you want to create. Yes, you need to have a watchful eye on cost controls, operational efficiencies, and financial results, but without looking beyond those and understanding why you do what you do, you’ll struggle to align the social, economic, and environmental factors that are needed to create lasting change.