SCALABILITY SCORECARD

Why Revenue Alone Canโ€™t Sustain Your Business: A CEOโ€™s Guide to Purposeful Growth

leadership Jan 08, 2025
A CEO's Guide to Purposeful Growth

Growth is hard. That’s a universal truth for business owners and leaders, echoed by N. R. Narayana Murthy, co-founder of Infosys, who said, “Growth is painful. Change is painful. But nothing is as painful as staying stuck where you do not belong.” For CEOs committed to building something greater, this is the ultimate challenge: to grow their businesses in meaningful and sustainable ways, not just for the sake of expansion but to create lasting value.

Every time I speak at CEO forums or conferences, I start with a few simple but revealing questions:

  1. Do you want to grow your business? (๐Ÿ™‹‍โ™‚๏ธ hell, YES)

  2. What specifically are you trying to grow? (๐Ÿ’ฐ๐Ÿ“ˆ revenue)

  3. Why do you want to grow? (๐Ÿค” not sure)

The answers to these questions often highlight a fundamental misunderstanding about growth. Most CEOs default to revenue when they think about scaling up. While there are instances where revenue growth is a reasonable desire, it is rarely sufficient on its own. Revenue growth, pursued without intention or strategy, can trap leaders in a cycle of busyness without progress—a scenario I call “growth purgatory.”

What Are You Trying to Grow?

The best CEOs recognize that growth must extend beyond revenue to areas like gross margins, leadership capability, organizational culture, operational efficiency, customer satisfaction, and innovation. These elements build the foundation for a truly scalable business. In my upcoming book Finding Freedom, I explore this in depth, recounting stories like Ryan Tansom’s experience turning around his family’s copier business. They scaled revenue but lacked systems, processes, and leadership alignment, which led to a “monster” business they had to feed.

Another example comes from Carl Saunders, founder of Vorum Research Corp. His business initially focused on growing revenue but shifted gears to measure success by the number of patients fitted with their prosthetic technology worldwide. This purpose-driven metric aligned the team around something bigger, ultimately driving exponential results.

Growth, when intentional, pulls businesses forward—not into chaos, but toward clarity and purpose. Without a clear focus, CEOs risk adding more complexity without solving the core problems that hold them back.

Why Do You Want to Grow?

The motivations behind growth are just as critical as the targets themselves. Over the years, I’ve encountered a range of reasons for growth—from ego to legacy. While some leaders are candid about their ego-driven desires, the most effective CEOs are grounded in deeper convictions. These reasons often include:

  • Creating a lasting impact on society: Leaders like Marcus Wasserle, whose climbing gym business focuses on family experiences, demonstrate how purpose can drive decisions. By understanding that children influence where families go, Marcus tailored his services to create deeper connections with his ideal customers.

  • Enhancing customer satisfaction: The best CEOs align their teams around improving customer experiences, knowing that loyalty drives profitability.

  • Building wealth for stakeholders: Whether it’s ensuring shareholder value or creating opportunities for their teams, CEOs with a clear “why” approach growth with intentionality.

A “why” rooted in purpose not only strengthens the leader’s resolve but also inspires the team to persevere through the inevitable challenges of scaling a business.

Growth Is Hard—Here’s How to Do It Right

In my coaching work, I emphasize the importance of alignment within leadership teams. Misalignment—whether in vision, execution, or communication—is a common barrier to progress. To overcome this, CEOs must:

  1. Define what growth means for their organization: This requires clarity beyond financial metrics, focusing on areas that enhance long-term value.

  2. Align their leadership team: A high-performing leadership team acts as a multiplier for business success. In my podcast, we’ve explored how uncovering hidden talents within teams—like using an employee’s photography skills for marketing—fosters alignment and engagement.

  3. Maintain brutal honesty: Growth requires self-awareness and the ability to confront hard truths. In my own business journey, I learned the painful lesson of holding onto control too tightly, which limited my team’s ability to lead independently.

  4. Build systems and processes: These are the scaffolding for sustainable growth. A business can’t scale if the owner is at the center of every decision.

A Challenge for Your Leadership Team

If you and your team are serious about growth, take 30 minutes to answer these three questions:

  1. What does growth mean for us?

  2. Why is it important?

  3. How will we achieve it?

Let your team respond privately, then discuss their answers together. This exercise often uncovers surprising insights and sparks meaningful conversations. It’s an approach I’ve used in workshops and with clients, and it consistently leads to breakthroughs.

Aligning for the Future

As we navigate uncertain times, the leadership teams that succeed will be those most aligned in their vision and most convicted in their purpose. Growth, in any form, is never easy. But when grounded in clarity and supported by a strong team, it becomes not just achievable but deeply rewarding. So, take a moment to redefine what growth means for you, align your team around that vision, and commit to the journey with intention and resilience.

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