New Avascent Report Advises Companies on Developing Business Strategies in Wake of Stimulus
March 24 2009
Washington, DC – The Avascent Group,Washington, DC’s leading strategy and management consulting firm, recently released an analysis of the American Reinvestment and Recovery Act (ARRA) and its implications for businesses looking to expand into new markets. Titled “A $787B Glass Half Empty or Half Full? How Business Leaders Can Strategically Approach the ARRA for Maximum Success,” the assessment cautions companies against aggressive opportunity pursuits without careful, process-oriented evaluations of markets and associated funding streams.
“Companies need to be mindful of exceedingly high expectations just because of the breadth and depth of the ARRA,” noted Jon Barney, a Principal at Avascent and lead author of the report. “Too often, in the wake of massive spikes in federal spending, business leaders cast their nets as wide as possible in order to achieve long-term growth without understanding the value of focused, process-driven strategy and analysis.
In the report, Avascent notes areas of potential appeal in the ARRA, including infrastructure improvement, alternative energy, and health information technologies. Companies looking to gain footholds in these markets, however, should consider that the complexity, scale, and pace of implementation of the ARRA dictate a thoughtful approach to formulating any capture or growth strategy.
Specifically, Avascent’s process-oriented approach to any market pursuit is built upon three core tenants: 1) an external view of the markets in question; 2) an internal capabilities assessment; and 3) a comprehensive action plan, including the development of optimal organizational design. The first of these tenants requires a complete dissection of the overall market and a review of its value chain.
“Only a true understanding of the value chain allows a firm to align its core competencies with areas of greatest opportunity in the market,” according to Barney.
Getting to that point, however, requires more than just a capabilities match. Avascent’s report recommends an in-depth review of a company’s long-term objectives and overall vision for the future. The report asks, “Is the emerging business sector in my core business today?” Aligning this vision with identified capability gaps puts a company in a position to determine whether to pursue a market, and if so whether it should be done through organic or inorganic means. An action plan will result from this process, but the company must consider placement of the opportunity within the organization and form a broad, integrated product team to lead the execution.
Avascent concludes that the ARRA represents both a unique challenge and a tremendous opportunity. While there is never a guarantee of success, common pitfalls can be avoided so long as a systematic approach is taken as a means to balance the two.
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About The Avascent Group
The Avascent Group is the leading management consulting firm specializing in serving senior executives in the defense, aerospace, homeland security, logistics, technical services, and infrastructure sectors. Avascent provides a full range of management consulting services, from strategic planning to market analysis to organizational and operational improvement.
For further information, contact: Mr. Tim Stanos (202) 452‐6990 email: tstanos@avascent.com
Author(s): Jon Barney