Posted on May 1, 2013

What Leaders Need to Understand About the Value of Growth

The value of growth means to become larger, greater or bigger; expand or gain; a progression.

Leadership Questions:

What is your #1 barrier preventing healthy growth right now?
When you talk about growth, how do you know if others see the same vision as you?
Who was responsible for your last major growth spurt, and why?
Have you defined with clarity what growth means (e.g. larger, expand, or progress)?
Do you have plans in place to reward those who create healthy growth?

Good Growth vs. Bad Growth

Why is Jack Welch, former Chairman and CEO of GE, honored and celebrated so much? Because of the year-after-year success during Welch’s tenure (1981-2001) that led to GE’s market capitalization growing by $400 Billion.

Why is Ken Lay, founder and former Chairman and CEO of Enron, viewed with such disdain, even though he grew a $100 Billion business? Because of accounting fraud charges and corporate abuse that led to the company’s sudden demise and bankruptcy (2001).

For a leader, not all growth is equal. There is good growth and bad growth.

Good: growing a business; expanding capacity; obtaining bigger sponsors; helping someone progress forward in their skills.
Bad: growing unnecessary debt; gaining more of the wrong people; greater bureaucracy; allowing an issue to progress into a crisis.

Good leaders recognize and promote good growth, while managing and minimizing bad growth. Unfortunately, it’s impossible to eliminate all bad growth. But effective leaders maintain a healthy balance ensuring more good than bad.

Equally important, effective leaders clearly communicate the difference.