Vector Growth Strategy Methodology

Growth is essential for value creation

The two most important factors driving value creation are:

Generating profit margins that exceed the cost of capital and

Sustaining above-market growth rates

The dominant focus of most companies has been on cost side of the profit equation, and many are seeing diminished returns through cost reduction efforts that are beginning to cut into valuable resources needed for growth. While profitability is certainly important, over a 3-5 year horizon a company's demonstrated rate of growth is an even more important driver of future valuation.

Our services are designed to complement cost reduction initiatives like "lean" and to help our clients realize the compounded benefits of driving higher growth from a lower cost structure - taking full advantage of the improved operational flexibility and agility as well as the economic flexibility to drive increased market share.

When market conditions are uncertain there is a tendency to cut costs and focus on trying to maintain the status quo in order to survive until conditions improve. We believe that this defensive "business as usual" strategy can be a recipe for disaster as cost containment will prop up results only temporarily without revenue growth. In addition:

Competitors are likely following the same defensive strategy, leading to more price-based, commoditized competition and eroding margins
Your best employees will leave for situations where they can further their career rather than treading water in survival mode - often top salespeople are the first to seek greener pastures

We believe that the best defense is a strong offense. Improving sales and marketing practices while competitors are focused on cost containment represents a great opportunity to gain market share and provides a platform to gain even more share as the economy recovers - both organically and by acquiring weakened competitors. A disciplined approach is critical to defining the initiatives that will generate increased share:

Understand your company's strengths and weaknesses from the perspective of the market, answering questions such as:
- What are the buyer values of your customers and prospects? (they may have changed in the downturn)
- How do you compare to the competition in terms of price, service, and quality?
- Are you losing deals or leaving money on the table due to ineffective value propositions?

Align selling messages to emphasize your strengths and your competitors’ weaknesses - we commonly find that salespeople are using messaging that were designed for different economic conditions and market dynamics and no longer work

Reassess and streamline sales and marketing practices to eliminate activities that do not add value to the sales process and to simplify the decision making process

Align the organization, processes, and incentives to help (and not hinder) the sales team in their pursuit of share