Article | 11th QMOD Conference. Quality Management and Organizational Development Attaining Sustainability From Organizational Excellence to SustainAble Excellence; 20-22 August; 2008 in Helsingborg; Sweden | Driving Profitable Growth: A Study of Essential Management Practices

Title:
Driving Profitable Growth: A Study of Essential Management Practices
Author:
Lars Grønholdt: Department of Marketing, Copenhagen Business School, Denmark Anne Martensen: Department of Marketing, Copenhagen Business School, Denmark
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Year:
2008
Conference:
11th QMOD Conference. Quality Management and Organizational Development Attaining Sustainability From Organizational Excellence to SustainAble Excellence; 20-22 August; 2008 in Helsingborg; Sweden
Issue:
033
Article no.:
045
Pages:
537-544
No. of pages:
8
Publication type:
Abstract and Fulltext
Published:
2008-12-09
Series:
LinkĂśping Electronic Conference Proceedings
ISSN (print):
1650-3686
ISSN (online):
1650-3740
Publisher:
LinkĂśping University Electronic Press; LinkĂśpings universitet


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Purpose: The purpose of this paper is to examine how different management practices drive profitable growth and business success in Danish companies.

Methodology/approach: Both qualitative and quantitative research are conducted to study the relationships between eight general mangemement practices and key performance results. A survey among large companies in Denmark and the companies’ key performance results forms the empirical basis for the study. Two central key performance results are ‘increase in turnover’ and ‘return on invested capital’. It can be argued that sustained increase in turnover and high return on invested capital at the same time indicate profitable growth and return to shareholders in the long run.

Findings: The findings provide evidence that the eight management practices are linked to key performance results. The high-performing companies differentiate significantly from the low-performing companies with regard to how well they do the management practices. All eight mangement practices are essential in producing profitable growth.

Research limitations: This study is limited to the eight identified management practices in large Danish companies.

Practical implications: This study has clear implications in terms of identifying and measuring the importance of essential management practices which influence profitable growth and thereby separating the facts from the fads.

Originality/value: The study identifies and measures eight essential management practices and links these to actual key performance results.

Keywords: Profitability; Growth; Key performance results; Management practice; Denmark

11th QMOD Conference. Quality Management and Organizational Development Attaining Sustainability From Organizational Excellence to SustainAble Excellence; 20-22 August; 2008 in Helsingborg; Sweden

Author:
Lars Grønholdt, Anne Martensen
Title:
Driving Profitable Growth: A Study of Essential Management Practices
References:

Grønholdt; L. & Martensen; A. (2005); "Marketing Redefined: Changes and Challenges"; The Marketing Review; Vol. 5; No. 2; pp. 101-109.


Jørgensen; J.K.; Bisgaard; L.; Grønholdt; L. & Martensen; A (2007); "Fokus pü lønsom vÌkst i praksis"; article 4.1 in Børsen Ledelseshündbøger: Relationship Management; November 2007; Børsen Forum; Copenhagen; Denmark (in Danish).


Jørgensen; J.K. & Grønholdt; L. (2005); "Markedsudviklingsanalyse: Status og trends for de 500 største danske virksomheders markedsmÌssige muligheder; udfordringer og trusler"; article 4.3 in Børsen Ledelseshündbøger: Relationship Management; February 2005; and article 3.1 i Børsen Ledelseshündbøger: Effektivisering; August 2005; Børsen Forum; Copenhagen; Denmark (in Danish).


Joyce; W.; Nohria; N. and Roberson; B. (2003a); What Really Works: The 4+2 Formula for Sustained Business Success; Harper Business; New York.


Joyce; W.; Nohria; N. and Roberson; B. (2003b); “A Formula for Sustained Success”; Optimize; 15 May; pp. 69-72.


Martensen; A. & Grønholdt; L. (2005); “Return on leadership”; Proceedings of the 8th International QMOD 2005 Conference: Quality Management and Organizational Development; Palermo; Italy; 29 June – 1 July 2005 (pp. 25-37). Palermo; Italy: University of Palermo; Italy; and University of Linköping; Sweden.


Miller; L. (2004); “Book review - What Really Works: The 4 + 2 Formula for Sustained Business Success”; Journal of Change Management; Vol. 4; No. 1 (March); pp. 83-85.


Nohria; N.; Joyce; W. and Roberson; B. (2003); ”What Really Works”; Harvard Business Review; Vol. 81; No. 7 (July); pp. 42-52.

11th QMOD Conference. Quality Management and Organizational Development Attaining Sustainability From Organizational Excellence to SustainAble Excellence; 20-22 August; 2008 in Helsingborg; Sweden

Author:
Lars Grønholdt, Anne Martensen
Title:
Driving Profitable Growth: A Study of Essential Management Practices
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