Organically Grown

I wrote about the balance of firms growing through acquisition (or merger) as well as organic growth.  I want to look closer at growing organically.  Typically, the task of growing organically is carried by the management of an operating unit.  I believe resources should be given to the operating units, who are on the front lines with access to market opportunities, but organic growth should be managed by CEOs and management teams together.  The task of growth organically only comes with a broader view than quick, easy opportunities in market adjacencies (new customer groups, new sales channels, expanding product lines).  The trend is that those returns generally fall off, and are frequently affected by the global economy.  By playing an active role in the organic growth of those operating units, the CEO can help to discern between a quick fix and a long term growth opportunity, and actively put funding to use that will result in big picture gains for the firm as a whole. 

Ann Banning - Wright