What 707 Private Businesses Are Starting to Tell Us About Strategic Capacity
For years, we have described Strategic Capacity as a business's ability to predictably and sustainably grow profits and cash flow. That definition sounds straightforward, but measuring the organizational capabilities behind it is considerably more difficult. Revenue tells us how large a business has become. Profit tells us something about its current economics. Headcount tells us something about organizational scale. None of those measures, however, necessarily tells us whether the business has developed the leadership, systems, processes, culture, and strategic disciplines required to reproduce its performance reliably.