Growth vs. Evolution

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

— Charles Darwin

It’s virtually impossible to think of building a successful business (or life) without the intention and traction to grow your business.
 
But growth for growth’s sake can be a trap.
 
The idea that you have to make a particular business metric go up at any and all costs can lead to unintended outcomes, such as hiring too fast, on-boarding the wrong people, or compromises in quality, customer service or innovation. In this HBR article, Professor of Innovation at Northwestern’s Kellogg School of Management Robert Wolcott cautions us not to get seduced by “old metrics” in business.

Near Enemy of the Truth

Business leaders often cite Peter Drucker’s misleading quote, “You can’t manage what you can’t measure.” Although this quote sounds appealing, it doesn’t hold up under scrutiny. While good metrics are important for guiding focus and achieving goals, they can sometimes overshadow common sense and meaningful actions. Poor measurement can result in poor management.

In most industries, a few key metrics dominate, becoming the ultimate measure of success or failure. Think of retail, where same-store sales or sales per square foot dictate who’s on top. These time-tested metrics act as compasses, guiding decisions and driving resource allocation. But there’s a dark side—these metrics can turn into tyrants. When the landscape shifts, clinging to outdated metrics can risk a company’s very survival. It’s not just about what we measure but how we adapt our measures when the world around us evolves.

Any company can examine a wider set of metrics than simply top-line growth. For instance, companies can measure their innovation index, customer loyalty and lifetime value, or employee engagement and retention rates, all of which lead to healthy growth.
 
What if, instead of growing your business, you nurtured its deliberate evolution instead?
 
What if, instead of growth, you thought about how you, your team, and your organization are evolving? 

Danger Signs of Growth:

1. Loss of Focus: Chasing growth by expanding too quickly or broadly can dilute what makes your business unique, leading to a decline in quality and value.
2. Increased Complexity: As you grow, added layers of management and systems can bog down decision-making, reducing agility and innovation and increasing inefficiency.
3. Culture Dilution: Rapid growth can erode the core culture and values that initially drove success, especially if it involves a flurry of new hires or mergers.
4. Financial Strain: Growth demands investment, which can stretch resources thin, increase debt, and make your business vulnerable to market changes.
5. Weakening Customer Relationships: Taking on more customers than you can serve risks deteriorating service quality and damaging trust, leading to higher customer turnover.
6. Misalignment with Purpose: Growing for growth’s sake can shift focus away from your core mission, leading to decisions that prioritize scale over meaningful, sustainable progress.

When you think in terms of evolving (making meaningful change as you adapt to circumstances) and nurturing (protecting something while it grows), you are compelled to be more intentional about how and why you’re growing. Focusing here makes all the difference.
 
If you focus on evolving, you mindfully and creatively adapt to the circumstances that surround you.
 
If you focus on nurturing, you can protect and steward what’s already established and valuable.

Consider these business evolution questions:

• Is the lack of potency of your brand inhibiting your business growth?
• How does your business need to grow? In what way, in what direction, and by what metrics? 
• What does healthy, intentional, and sustainable growth look like for you and your team? How would you measure that?
• What are ways you can nurture your team so that they have the direction, focus, and space to engage with one another, serve customers, and innovate?
• What are you unwilling to compromise on to achieve growth? What are the non-negotiables?
• How does your business define success? What does success look like for your customers?

Every expedition involves making two thoughtful decisions: where to go and how to get there. Success and goal achievement are no accident. Defining how you reach your focused goals can define the unique positioning of your business. Growing, nurturing and evolving your business is about forging your own courageous and bold path.
 
Let your business trajectory be a path of your definition and forging.
 
The most successful businesses aren’t aiming to be bigger; they’re evolving to become more valuable.