J Curve Management Framework

Date: 11 June 2014
Category: J Curve Management
Tags: J Curve Management

In a previous blog, What are J Curve Investments?, we introduced the concept of a strategic decision to spend money today in order to gain a benefit in the future. In today’s blog we discuss how we can manage J Curves to drive business growth.

So, why do you need to manage J Curves?

J Curves for midmarket companies (larger than $1m and smaller than $100m) are broadly defined as any decision to spend money today where the benefit will not accrue until tomorrow or the future. You recognize that the short-term financial loss from these strategic investments is offset by the medium to long-term benefits to your business. At RealTimeCEO, we’ve analysed and worked with over a thousand businesses around the world and every single business in every single industry has J Curves in it. This makes the management of J Curves absolutely critical.

“The identification, prioritisation and management of J curves is the single most important determinant of entrepreneurial success.”

– Nick Setchell

Some J Curves that you need to identify in your business could be decisions such as:

• new product line
• new access to market strategy
• new equipment purchase
• new staff hire
• new business premises / opening other premises
• moving manufacturing overseas
• acquiring competitors.

We have designed a framework to help CEOs identify, prioritise and manage their J Curves. This framework is made up of:

• Three phases of a J Curve
• Measurement of J Curves
• 5 Rules for management of J Curves
• Other issues to consider
• Broad impact of J Curves

Stay tuned for our next three blogs where we provide more details on each of these aspects of the framework. Or for a personalised plan tailored to your business, contact us. We’d love to hear from you.