Organic company growth is typically seen as something that is steady.  Five to twenty-five percent a year growth is deemed reasonable and in many cases aggressive.  Hockey stick growth, that which is 50, 75, 100+ percent growth in a single year and then sustained at high rates in a few subsequent years, is usually thought to only occur through acquisitions or mergers. This does not always have to be the case and a shift in planning processes may in fact make periods of rapid growth possible organically.

Frame of reference for planning makes a difference

Most planning processes are done annually and look at where a company is today as the basis for determining where things will be in the next year.  Realistic growth targets are established based upon current performance.  Forecasts are often done taking that growth out three to five years.  With the current situation as the frame of reference, it is difficult to justify large changes in growth with out an acquisition or some other exogenous force.

Since some companies do experience hockey stick growth organically, we know that it is possible.  What are rapidly growing companies doing that is different from those who experience modest growth and how to they plan for it?

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