One of my Vistage members asked me this question this week, “What is the common theme among the businesses you know that have grown significantly?”
Or to ask the question another way, why is it that less than 1.5% of U.S. companies are greater than $25mm in revenue and less than .27% are greater than $100mm*. And, why is it that Vistage members outperform their counterparts in their same industries?
The answer quite simply is the combination of a scalable business model and ruthless execution.
Peter Drucker says businesses have more than enough leaders; what they really need are “competent managers who can do the hard work of decision making, planning, and coaching”.
The leaders of companies I know that have scaled understand this. These are the companies that develop plans and execute on those plans. They follow the DIME method – continuously Design, Implement, Monitor and Evaluate. For more on the Dime Method, see 7/22/12 blog – Is Your Leadership Team Your Co-Advisor.
*Source Keith McFarland, Breakthrough Companies