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One of the best ways for companies to succeed is to invest in success. Allocate capital into a winning product or department, and your company will likely deliver growth and profits. 33 percent of companies fail to do this, however. They invest time and money wherever old habits and corporate politics lead them. If you break away from that pack and invest in success, you’ll have a better chance of achieving growth and profitability. So what does it take?

Winners Don’t Allocate, they Reallocate

The best companies do not simply provide uniform allocations to business departments year after year. Instead, they forecast the market, measure risk, and invest in the best probable outcomes.  Their capital allocations vary considerably each year, based on their strategy.  And the results they achieve are strikingly clear: companies that reallocate are often more successful than those that do not.

Winners Invest for the Long Term

Great companies are willing to forego short-term profits in pursuit of long-term success. Rather than pump up their balance sheets for the next shareholder report, they invest in winning research and development, or in great product lines. It’s no surprise that the long-term approach achieves results.

Winners Invest in Great People

The best companies also invest significant resources into finding, developing, and leveraging the very best people. Great executives expend significant effort on talent management. Executives at AB InBev, the world’s largest beer company, spend nearly 33 percent of their valuable time on personnel decisions. And for good reason: talent drives profits, so they invest in it.

Parting Thoughts

Many companies allow their corporate culture or status quo business practices to drive investment decisions. Great companies, however, do not. They allocate capital to enable success. They forego small profits today for great success tomorrow. And they take the time to find and empower the best people.

VerifiaBill is a great example of this. An insurance invoice auditing and consolidation company, VerifiaBill has invested in cutting edge technology and great people to deliver accuracy, transparency, and value to its customers. Overall, companies that focus on the long-term frequently outperform peers focused on short-term profitability.

Is your company investing for success?