Growing revenues and profits in any organisation must be an ongoing focus.
With the ever changing environment, disruptive technologies and new opportunities and challenges, a culture of growth must be encouraged and embedded into the routine.
A structured model to do this on a regular basis may sometimes be helpful. And there is no better framework than Igor Ansoff’s strategic planning tool – the Ansoff Matrix.
The diagram above proposes a simple matrix that has worked for me in the past and is still quite effective today. (The word market and customers may be interchangeable in this model.)
Whilst we often operate within the bottom left quadrant – where we saturate our current market with our existing products and services – it is useful to turn our attention to other areas.
The first step is to work upwards vertically, targeting new markets with the existing range of products and services.
Secondly, one can work outwards horizontally, offering new products and services to our existing customers and markets.
Finally, the organisation can move diagonally, developing new products and services for new markets.
Each of these avenues have proven to be successful on their own, but when considered holistically can be a very powerful strategy for any organisation to pursue.