It’s easy for established companies to become risk averse after they’ve grown enough to forge a secure place in their competitive landscape. But stifling the relentless drive that got them there could hinder future growth. That’s why maintaining a challenger mindset—an attitude that seeks to change the status quo through innovation and risk-taking—is so important.
“Truist Business Lifecycle Advisory encourages leaders to see what’s over the horizon so they can proactively tackle challenges and seize opportunities,” says David Weaver, chief commercial community banking officer at Truist. “This forward-thinking approach can help reinforce the challenger mindset as companies discover new pathways to growth.”
Here’s how to stay competitive and continue thriving.
Always think about what’s next.
If one area of your business has seen success, is there an additional segment or geography you can break into? It’s a formula that can pay off: Businesses that expand into adjacent industries or segments are 20% more likely to achieve greater growth than their peers.Disclosure 1
Take Target, for example. The retail chain has found multiple ways to keep evolving as it secures its place opposite Walmart as a retail giant. In the early 2000s, it began stocking grocery items, and in 2008, it expanded into fresh food. That sector of products now accounts for one-fifth of the company’s total revenue.Disclosure 2
CVS Health—the largest U.S. pharmacy company—is another example. Expanding to include healthcare services beyond pharmacy and retail accounted for 67% of the company’s revenue growth from 2005 to 2019.Disclosure 1
Inspire your team to dream.
When employees embrace a challenger mindset, they feel encouraged to keep pursuing fresh ideas. That nimble thinking can help established companies swiftly adapt to changing market conditions.
“That’s important to keep in mind because many larger, established companies can mistakenly assume their size will protect them from disruption,” says Weaver.
Nurture an atmosphere that encourages growth, creativity, and an openness to explore conflicting viewpoints. Does your team know you care about their feedback and are genuinely interested in their point of view? How do they know? Challenge them—and yourself—by asking questions and actively listening.
“Encouraging innovative approaches is more than just trying to make your workspace ‘cool’ or ‘trendy,’” says Weaver. “Instead, discover what truly motivates your team to innovate, then create an environment that nurtures those motivators.”
Push the innovation envelope.
Innovation can come in many different forms for established companies. You might want to replace legacy systems with a technology solution that helps automate tasks or improves speed to market. You may be ready to create new products based on feedback you’re receiving from customers. You might even identify a niche market that no one else has tapped. Opportunities like these could propel you from the established stage back into a period of renewed growth—or even trigger a transition into a new business model.
“Leaders who embrace a challenger mindset can shape decision-making across all areas of their business,” says Weaver. “As your financial and advisory partner, it’s our job to help you see where those opportunities lie and help you build a solid plan to capitalize on them. We do that through regular, ongoing conversations that continually evaluate your evolving needs and goals.”
