Why Only 3% Of Indian Firms Are Ready For Growth
Digital explosion has forced Indian businesses to rethink on their IT strategies and transform their work practices. They are fast realizing the role of digitalization in shaping their business and leading growth. High internet penetration and accelerating technology adoption has given organizations several opportunities to expand their services inside and outside the country.
Yet, there is something lacking. If one goes by a PwC study, only 3 pc of Indian companies are really ready for growth.
While investment in emerging technologies has gone up, many companies lack a roadmap for risk mitigation and sustainable growth.
The study titled ‘Why Indian companies need to get Fit for Growth and what you can do’ states that over 80 per cent of surveyed organizations lack growth potential because of they are strategically adrift, distracted or capability constrained.
It states that India has fewer ’strategically adrift’ companies than observed globally. A ‘strategically adrift’ organization should look to re-craft its corporate strategy and align it with core capabilities, a ‘distracted’ organization must channelize its resources towards core activities, while a ‘capability constrained’ organization should review its operating model, Economic Times wrote quoting the PwC report said.
Executives need to identify the areas they are lacking in and must initiate ‘ready for change’ measures by drawing a roadmap. An effective corporate strategy is essential for any successful business. Leadership is the core of planning and implementing a business strategy. Setting achievable targets accompanied with short and long-term plans is imperative.
There is always an element of uncertainty in launching new products or services. But setting short-term and long-term goals that are aligned with business values would go a long way in being in competition.
An HBR blogger writes: “When I ask business executives about their company’s strategy — or about an apparent lack thereof — they often respond that they can’t or won’t do strategy because their operating environment is changing so much. There isn’t enough certainty, they argue, to be able to do strategy effectively.”
As the world changes, there is a need for businesses to keep pace with every-day innovations and set the right tone for growth programs.
Another reason for poor growth of companies in India is lack of innovation.
As Anand Mahindra put it in an interview recently: “It is really about competition. It is about allowing the ecosystem here to compete with the world for everything. If you look at the past, we stagnated as an economy because of a lack of competition. People asked us why we were not investing more in R&D in India.”
Accepting competition and building the capabilities to address lacunae, will be beneficial for growth of companies as well as the economy. It requires an effort to draw a strategy, but it will be worth the time as it makes an organization ‘fit for growth’.
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