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Les McKeown's Predictable Success Blog

  • January 31, 2011
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Beware the law of compound growth loss 

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It’s only the end of January, and already you’re thinking that you may have made one major strategic error. 

And you know that if you’re right, it will hobble the growth of your orgainzation this year. (How do I know this to be true? Find out here.)

Here’s why you need to act on that concern now. It’s called the law of compound growth loss, and I’ve illustrated it in the two diagrams below.

First, let’s take a look at what happens if you act now, correct the mistake and get back on the right path:

Recovering early from business growth errors

Recovering early from business growth errors

Here you can see that while you have lost some ground because of your early mis-step, your quick recovery means that by the end of the year you’re not far behind your original goals.

You also have all of the rest of the year to recover the lost growth and get fully back on track.

Contrast that with what happens if you wait say another say three months to act on your concerns:

What happens when you leave your business growth recovery too late

What happens when you leave your business growth recovery too late 

Here you can see that:

  1. you end the year far further behind your original growth targets, and;
  2. you have much less time to recover from the effect of the original mistake.

In another blog post I’ll show you what the most common ‘early growth errors’ are, then we’ll find out how to check if your gut is right – have you really made a mistake or not?

What About You? has your orgainization made a major strategic error or are you firmly on track?

Let Me Know In The Comments Below!

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