Middle market companies are in a constant state of transformation. But throughout all that change, they need to make sure they’re always growing, if they want to remain competitive.
With the upcoming 2013 National Middle Market Summit on October 30, we thought the time was ripe to outline recent findings on growth and success in the mid-market.
Success by Numbers
In its report, Blueprint for Growth: Middle Market Growth Champions Reveal a Framework for Success, the National Center for the Middle Market identifies six key qualities shared by most leading mid-market companies, referred to as Growth Champions. The qualities are as follows:
Strong Management Culture – Compared with the rest of the middle market, Growth Champions are 13% more likely to report having a high-performing management team. They’re also 27% more likely to be able to contain cost through operating efficiency, and 28% more likely to benefit from their management structure, as far as being able to quickly take advantage of opportunities as they arise. One highly effective way to drive operational efficiencies is to engage a BPO firm that can support growth. This also enables F&A management to stay focused on the big picture, rather than being distracted by day-to-day tactics.
Exceptional Talent Management – Growth Champions are almost twice as likely as their mid-market peers to put a premium on attracting top talent with valued skill sets. They’re also 38% more likely to tie compensation to growth goals, rewarding employees for good performance. One trend that we have seen here at Sutherland is mid-market (and enterprise) companies that want to keep your eye on training and developing their best in-house people while the BPO provider takes care of the transactional work. The end result is a center of excellence in which everyone can concentrate on what they do best.
Formal Growth Strategy – Getting specific is a key to success. Growth Champions are 35% more likely than the broader market to report that their company is excellent or very good at setting formal annual growth targets. They’re also 36% more likely to have a formal process for communicating growth targets through the business, and 64% more likely to have employed that internal communications process since the financial crisis began. Outsourcing F&A plays a big role in planning and emphasizing growth; it helps ensure standardized processes, and sets benchmarks and plans for efficiency gains, all of which support your organization’s overall business objectives. (Keep an eye on this blog in the coming weeks for a more in-depth look at formal growth strategies in the middle market.)
Sharper Customer Focus – Compared with other mid-market organizations, Growth Champions are 17% more likely to feel that strengthening existing customer relationships and/or acquiring new customers is important to meeting growth targets. As well, they’re 25% more likely to recognize the value of increasing the effectiveness of their sales force. F&A areas like data analytics can provide information and insights about your best customers and which marketing initiatives performed well, which you can use to strengthen and develop relationships.
Broader Geographic Vision – Best-in-class companies never lose sight of the big picture. Growth Champions are 57% more likely than other middle market firms to compete in markets outside the U.S. and 61% more likely to have global suppliers. On the flip side, they are 62% less likely to operate exclusively in local markets. One of the fastest and most effective means of growing your company is by trusting your services to a BPO provider; outsourcing enables you to easily scale up or down to meet demand, so you can expand from regional to national to global as needed.
Focus on Innovation – Among executives, those working at Growth Champion businesses are 32% more likely than their mid-market peers to emphasize investments in new product/service development as being essential to meeting growth targets, and 28% to do the same for investments in new business processes. Outsourcing F&A services enables innovation by empowering executives and management to focus on strategy rather than mundane operational tasks. It also fosters innovation in the F&A department because BPO firms are up on the latest industry developments and are actively looking for ways to help you grow, evolve and expand.
Plan on Healthy Growth
Outsourcing offers a simple, cost-effective way of ensuring that your business reflects the same key qualities that best-in-class mid-market companies share. By trusting your F&A services to a BPO provider, like Sutherland, you’ll be able to grow and remain competitive in the marketplace.
To learn more about how outsourcing may be a solution for you, and to arrange a free assessment of your current practices with one of our finance experts, schedule an appointment today.