What we learned working with Canadian high-impact firms for 10 years
Ten years ago, BDC launched an advisory team dedicated to growing high-impact firms. Mostly mid-sized, these fast-growing companies are extremely valuable to Canada’s economy. Not only do they punch above their weight in terms of jobs and wealth creation, but they also inspire other entrepreneurs to be bold and aim high.
They tend, however, to face hurdles in getting to the next level, and it became our mission to help them step up. Our group of seasoned business leaders and experts developed and refined an 18-month, intensive journey for CEOs, including regular face-to-face meetings, and one-of-a-kind retreats many have called life-changing.
A decade in, more than 400 companies have gone through the Growth Driver Program. Not all have met their objectives, but some have reached valuations, sales or profitability levels their founder didn’t even think possible. The most successful CEOs have shown an ability to listen, be challenged, and try new approaches. We, too, have learnt and we have adapted our journeys to their needs.
Here’s a few things we learned from working with them over the last 10 years:
1. Shooting for the stars is a must
When screening companies and their CEOs applying to the program, we qualify them on three criteria:
- high ambition
- size (revenue and employees)
- mindset—a willingness to challenge themselves and to learn from others
The most successful high-impact firms we have seen are all led by ambitious CEOs who are convinced they can reach their goals if they get the right support.
It may sound obvious, but it’s worth repeating: It implies a willingness to take risks in a country where the risk tolerance of entrepreneurs has been documented to be lower than in the U.S.
Some participants have surprised us. Is it amazing what a motivated and ambitious CEO can do.
2. Successful CEOs evolve from doers to leaders
Many companies come to us because their fast growth phase is over. Their revenue is plateauing, they are not adding staff.
To scale up, they need to cross what we call a leadership gap. They need to learn to surround themselves with complementary skills and to delegate, rather than be the sole decision maker. The biggest success stories happen when CEOs understand they are not the most important person in the company.
It takes time, but the results can be amazing. It took a few retreats for one of our clients in the auto parts industry to realize he needed to empower his team. Eventually, he appointed a general manager for each unit and let them run the business, freeing up his own schedule to look for new opportunities. It paid off: revenue increased nearly ten-fold.
3. Higher levels require stronger teams
To delegate, CEOs need to believe in their teams’ abilities. That’s why we always spend time with them developing and building their leadership team.
The more capable strategists, project managers and executors a company has, the better it will do. Positions need to evolve accordingly, too: maybe the comptroller could rise up and be a chief financial officer now. Alternatively, maybe the business needs to hire a different skill set to meet its evolving needs.
Early on, we realized we needed to create a leadership retreat for trusted managers, since they, too, need those skills to implement the CEO’s ideas. Just like CEOs, participants are put in cohorts and experience high-pressure situations. We ask them to develop as the second-in-command of their company.
It turned out we were addressing unmet needs: some clients have sent as many as seven employees to participate in this unique leadership program.
4. Focus is the best growth avenue
A lot of companies try to do everything, which often leads to mediocre results. Focusing can also be a challenge for entrepreneurs, who often can’t resist chasing new opportunities. Yet, understanding where they should be focusing is often the key to success.
One of the key steps in our journey with CEOs is to help them identify their highest value opportunities. It gives them confidence to act and becomes their guide to deciding how to allocate scarce resources, including their own time. It makes them more strategic. They end up making better, timely decisions, based on data rather than on gut feel.
5. High-impact firms are everywhere
Coming into this mandate, we had some ideas around what high-impact firms looked like. We expected to find them among tech start-ups and manufacturers, based in Canada’s main urban centres. In fact, high-potential, ambitious businesses have come to us from all types of industries and places.
We have had several companies from the construction, and other non-tradable sectors, going through the program. We have enjoyed working with companies who were based in Vancouver Island, smalltown Saskatchewan, the Atlantic, or up in the Territories. All share one dream: becoming part of the next wave of champions.
An inspiration for challenging times
At a moment when Canadian companies face unprecedented levels of trade and economic uncertainty, they could do worse than try to emulate high-impact firms. Many in Canada had assumed free trade with our southern neighbor was here to stay. The last year has shaken many of our convictions, but pivoting can feel hard, even when more recent treaties have opened new markets.
At the same time, there is a palpable energy in the country, an incredible pride of being Canadian. It is time to channel that energy to embrace risk, hop on a plane and explore opportunities.
Next step
Do you think the Growth Driver Program might be right for you? Don’t hesitate to contact us to start seeing what it could mean.