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Strategy

The four decisions driving growth

People, strategy, execution, cash. Every growing business is failing at one of them.

Degree & MBAMindsets
Also called: people strategy execution cash, scaling up, growth decisions

Based on the Four Decisions framework popularised by Verne Harnish.

In one paragraph

Four areas that decide whether a business scales. They are not sequential — they are four plates, and the one you are ignoring is the one that breaks.

People. Do you have the right people, and would you enthusiastically rehire each of them? Growth exposes a wrong hire faster than anything else.

Strategy. Can you state what you do, for whom, and why they choose you — in a sentence somebody could repeat? If not, the marketing is guesswork.

Execution. Do things actually happen without drama? Priorities, rhythm, metrics, accountability. This is where most owner-managed businesses lose.

Cash. Do you have enough runway to fund the growth? Growth consumes cash, so the faster you grow the more this bites — see [cash flow and profit].

The diagnostic use is the point: score the four out of ten and work on the lowest. Businesses reliably spend their attention on the one they enjoy instead.

How to actually use it

  • Score them honestly this quarter with someone who will disagree with you. The gap between your score and theirs is informative in itself.
  • Only work on the lowest. Improving the one you are already good at feels productive and changes nothing.

Where it breaks down

  • Aimed at businesses trying to scale. A deliberately small business does not have a strategy problem for not growing.