Six Key Principles for Developing New-Growth Initiatives

1. The foundation: operational excellence. Reinforce the strength of your core business in order to generate the funds to support new-growth initiatives.
   
2. The grass roots: mandating growth at the operating level. Use measurements and incentives to hold operating managers accountable for the growth oftheir business.
   
3. Support, then winnow maverick ideas. Develop focused gate-keeping techniques tailored to the economic and marketplace realities of your industry.
   
4. Run interference: high-level support for growth initiatives. Invest resources in your growth initiatives that are commensurate with their importance.
   
5. Structure the new-growth business. Establish different structures for new- growth initiatives, since they will be fundamentally different from your core business.
   
6. Build the asset base through acquisitions and alliances. Gain access to key capabilities by purchasing or forging an alliance with companies that will maximize the value of any hidden assets while neutralizing or overcoming any hidden liabilities.