Imagine standing at the edge of a vast forest, where every towering tree, each lush canopy, and the dense undergrowth beneath represents decades, even centuries, of growth. This forest didn’t spring up overnight; it was cultivated with a long-term vision, nurtured with care, and sustained through continuous adaptation. Now, let’s translate this imagery into the world of business. Creating a customer-centric business that grows long-term value is much like intentionally growing a forest. And forests are valuable. The Boston Consulting Group estimates the world’s forests are worth $150 trillion, more than the U.S. stock market. Planning and design, species selection and planting, and forest protection and maintenance are critical steps for successfully producing a viable forest. Given their value, it makes sense to apply lessons and best practices of growing forests to growing a company: strategic planning, a strategy aligned to value creation, careful product selection and nurturing, robust performance management and operational excellence (OpEx), and a commitment to customer-centricity based on data-driven decisions. In no particular order, these five best practices for growing a business are the focus of this episode of What’s Your Edge?

A forest provides an excellent metaphor. Why? According to the United Nations, “over 1.6 billion people depend on forests for timber, food, fuel, jobs, and shelter—but all of us depend on forests in one way or the other. Forests provide critical ecosystem services that affect our climate, rainfall patterns, and watersheds, and at the same time they are also home to 80% of all land-based biodiversity.” Similarly, successful businesses are customer-centric since they provide valuable and needed services and products that create jobs and contribute to the business ecosystem.

A forest begins with a seed but it’s the vision of a thriving ecosystem that guides its growth. In business, this is like having a clear, long-term vision accompanied by a solid strategic plan. According to McKinsey & Company, companies with a focus on long-term strategy are 47% more likely to outperform their competitors in both revenue and profitability. Just as a forest needs time to grow, businesses must be patient and persistent.

To illustrate this idea, we can turn to Cargill, which has remained competitive for over 150 years. A global leader in agriculture, the company is committed to sustainable agriculture and global food security. Its investments in sustainable practices and innovations are like the deep roots of a forest, ensuring they can weather market fluctuations and continue to grow. Cargill doesn’t just react to market demands; it anticipates future needs and invests in ways that will allow it to meet them.

Just as the tallest trees in a forest started as small seedlings, businesses must plant the seeds of future success through a well-defined strategy and a commitment to long-term outcomes that deliver enduring business and customer value. What does that mean for you and your business? It means you and your board of directors, if you have one, must see beyond the immediate gains and focus on the enduring legacy you want your business to create.

A healthy forest is sustainable; it regenerates, adapts, and continues to grow over time. Similarly, a business needs a sustainable strategy that aligns with long-term value creation. In its report “How Executives Can Help Sustain Value Creation for the Long Term”, McKinsey & Company claimed that “when executives consistently make decisions and investments with long-term objectives in mind, their companies generate more shareholder value, create more jobs, and contribute more to economic growth than do peer companies that focus on the short term.”  This disconnect highlights the challenge of building a strategy that balances immediate needs with long-term goals.

John Deere provides an exemplary case of a company committed to a sustainable strategy. By investing heavily in precision agriculture and sustainable practices, John Deere ensures it not only meets current customer needs but also anticipates future demands. Its approach—akin to planting trees that will provide shade and shelter for generations to come—has allowed the company to remain competitive for nearly 200 years.

Forests require careful management to remain healthy and vital. Consider both short-term gains and long-term sustainability when you develop your strategies. When making decisions, keep customer value and long-term business growth in mind.

In a forest, diversity is key to resilience and growth. Different species of trees and plants are essential to creating a thriving ecosystem that can support a variety of wildlife. For a business to thrive, leaders must focus on delivering value to its customers through continuous innovation and the nurturing of talent. Studies suggest companies prioritizing innovation experience a 16% increase in efficiency, are 55% more likely to surpass industry peers in revenue growth, and have a 60% higher likelihood of organic growth.

3M, at over 100 years old, serves as a prime example of a company that understands the importance of innovation. Known for its longstanding commitment to research and development, 3M’s culture of innovation has led to the creation of thousands of products across various sectors, making it a leader in multiple industries. By nurturing talent and fostering a culture of innovation focused on customer value, 3M ensures it remains adaptable and competitive, much like a diverse forest that can survive and thrive in changing conditions.

Innovation is the lifeblood of growth, much like new seedlings in a forest. If you want your business to grow, invest in your people and create a culture where new ideas that provide real value to customers can take root and flourish.

A forest grows successfully when there is a balance between different processes—from photosynthesis to nutrient cycling. In business, performance management and operational excellence are the equivalent of those processes. These two elements make sure every part of the organization works efficiently and effectively toward achieving business results. Research by McKinsey & Company revealed companies that prioritize performance management are 4.2 times more likely to outperform their peers, seeing 30% higher revenue growth and lower employee and customer attrition.

Operational excellence and performance management in a business are about more than just efficiency; they are about creating processes that support long-term growth and an exceptional customer experience at every touchpoint. We believe companies that excel in OpEx and performance management are better equipped to respond to market changes, optimize their resources, and deliver consistent value to their customers.

Take Toyota, a company closing in on 100 years, as an example. Toyota’s commitment to operational excellence through its lean manufacturing processes has made it a leader in the automotive industry and allowed it to continuously improve and innovate. This relentless focus on process improvement is like the natural processes in a forest that support ongoing growth and renewal.

Just as a forest’s survival depends on the efficiency of its natural processes, your business’s success relies on its operational excellence. Continuously refine and optimize your performance measures and processes to ensure you are well-positioned to grow and thrive over the long term.

In a thriving forest, every element is interconnected; the health of one part affects the whole. In business, customer-centricity is what connects all aspects of the organization. While many companies claim customer-centricity is a priority, a study by Vantage Partners found that “only about 9% of companies operate in a truly customer-centric manner.”

Long-term strategies should be deeply aligned with evolving customer preferences and needs. Customer insights derived from data are the sunlight and water that allow businesses to grow in the right direction.

Slack provides an example of a B2B company that incorporated a customer-first philosophy into its strategy from day one. Slack puts its customers at the heart of its strategy, basing every update on feedback or user need.

Instill customer-centricity as a mandate in your business. It’s like ensuring the forest floor receives enough sunlight for new growth. Without customer-centricity, even the most well-planned strategies can fail to thrive.

Each of these five best practices contributes to a business’s overall health and growth. As you reflect on your own business, ask yourself: Are you planting the seeds today that will grow into a thriving forest tomorrow? Are you nurturing your talent and innovation to ensure your business can adapt and grow? Is your strategy designed to create customer value? Do you have the performance management and operational excellence to deliver on customer-centricity?

You’re only one growth idea away from an actionable step to transform your business into an enduring forest. Begin by evaluating your long-term strategy and aligning it with both the vision for your business and your customer needs. Invest in your people, refine your processes, and make data-driven decisions that will support sustainable growth. With the right approach, your business can grow into a thriving, resilient forest that stands the test of time.

Let’s have a conversation about how to map out your strategic plan and identify key areas where you can invest in growth, innovation, and customer-centricity. Remember, the seeds you plant today will determine the strength and vitality of your business tomorrow.