Growth is often measured in revenue, customers, people and market share. But not all growth is good growth.
The clients you take on, the people you hire and the partners you choose can all contribute to growth. The right relationships create momentum. The wrong ones can consume disproportionate amounts of time, distract good people and introduce risks that aren’t immediately visible on a balance sheet.
For business leaders, knowing when to say no can therefore be just as important as knowing when to pursue an opportunity.
Not all revenue is good revenue
In a recent Impact & Influence podcast, 4Sight Risk Partners Managing Director Gareth Jones reflected on the importance of trust, values and taking a long-term approach to relationships.
One of the principles behind that approach is being prepared to walk away when there isn’t the right alignment, even when there is revenue attached. That’s not always an easy decision in a growing business. There can be a temptation to accommodate every client, pursue every opportunity or tolerate a relationship because of its commercial value. But the immediate revenue is only one side of the equation.
The other is the cost of mismatch.
How much leadership time does the relationship consume? What impact does it have on your team? Does it align with your values and the standards you’ve set, or pull the business away from them? And, ultimately, is the relationship helping you build the business you want to become?
The same principle applies to your people
One of Gareth’s observations from more than three decades in business is the impact one person can have on a team. Skills and experience matter. But in a high-performing business, alignment with the organisation’s values and the way people work together can matter just as much.
As businesses grow, leaders inevitably become further removed from every interaction and decision. Culture starts doing some of the work leadership once did personally. That makes the people you bring into the business increasingly important.
The wrong fit doesn’t only create a people problem. It can become a business risk. It can affect decision-making, client relationships, productivity and the ability of good people to perform at their best.
Trust compounds over time
The opposite is also true. Strong relationships become more valuable the longer they last. At 4Sight Risk Partners, client retention sits at 97%. While retention is an important business measure, the relationships behind that number are more significant.
Long-term relationships create deeper knowledge. An adviser who understands where a business has come from, how it operates, where it is heading and what matters to its leadership team is better positioned to anticipate how growth and change may reshape its risks.
As a business grows, its exposures change. New people, acquisitions, contracts, systems, suppliers and markets can all alter its risk profile.
Good growth requires choices – what won’t you compromise?
For ambitious businesses, growth creates pressure to add more – more clients, more people, more partners and more opportunities. But sustainable growth isn’t simply about what you add. It’s also about being clear on what you won’t compromise to achieve it.
For leadership teams, two questions are worth asking: “Can this relationship help us grow?” And, just as importantly: “Is this someone who shares our values and who we want to grow with?”
Because over the long term, trust, alignment and commercial performance aren’t separate considerations.
Who you choose to grow with doesn’t just influence your success. It shapes the business you become.
Hear more from Gareth Jones, Managing Director of 4Sight Risk Partners, on trust, tough calls and taking the long view in his conversation on the Impact & Influence podcast: Trust, Tough Calls & the Long Game with Gareth Jones – Impact & Influence – Omny.fm
For more information please visit: 4sightrisk.com.au
Or reach out for assets or further details to:
[email protected]
Marketing & Communications
4Sight Risk Partners