Personal growth: everything you need to know about it.

Issues discussed in the material:

Personal growth - what is it?
Psychology of personal growth
10 Signs of Personal Growth
Personal growth goals
Where to start your personal growth and self-development
What you need to know about personal growth trainings
Useful books on personal growth
How to find yourself and your business if you don’t know what to do
One-year program for successful personal growth
Finally, recommendations with examples on personal growth

Personal growth is an integral part of the life of a modern person. In order to be successful in such a rapidly changing world, you need to constantly challenge yourself and reach new heights. However, the very concept of self-development cannot be interpreted unambiguously, because existing schools give it completely different meanings. Let's try to figure out what personal growth is and why it is so important for business.

Personal growth - what is it?

Personal growth can be called a constant and continuous process of self-development, thanks to which a person upgrades himself, develops certain qualities, achieves his goals, and also increases the quality of life and the level of satisfaction with it. Realizing your own potential allows you to do what you love and live a bright, rich life.

By working on ourselves, we form a new world around us. But the whole path will definitely not be simple and cloudless.

Personal growth is a kind of challenge, a test of strength. You can overcome the difficulties that arise only thanks to your inner core and strength.

That is why self-development requires maximum time and diligence. And you shouldn’t think that once you reach a certain stage, you can stop. The world is changing, so in order to grow, you need to constantly upgrade yourself. It may seem like it's too complicated. But rest assured, your work will bring tangible results.

Start with yourself!

Each person must begin first of all with himself.
Change internally and develop, then the desire to compare yourself with others, impose something on them and condemn them will disappear, because the realization will come that everyone here on Earth has their own path, their own lessons and tasks. Those people who strive for knowledge and seek the truth will search for it on their own, persistently, constantly. No matter how many shoes they trample in search of meaning, they will find it. And for those who sincerely want to achieve something, one day all closed doors will open and answers to all the questions that have arisen will be found.

Psychology of personal growth

Modern psychology can give many definitions of personal development. However, no matter what it is called (growth, reaching a new level, pumping, etc.), the essence of such changes is the same. Self-development is a tangible and visible transformation of a person, increasing his potential, and unlocking internal resources.

You may not even know which path has been taken, but the metamorphoses that occur to a person are always visible to the naked eye. Personal development allows you to become a full-fledged master of your own life, it opens up new facets of personality, and literally enriches your inner world. The main characteristics of this process of change include its focus, activity and scale.

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The theme of personal growth is often explored in literary works. For example, the famous Russian psychologist V.L. Levi in the book “Where to Live. Man in the Chains of Freedom” said the following about this: “What is personal growth? If a person has more: interests - and therefore incentives to live, meaningful fulfillment of life; the ability to analyze - to distinguish one from another; the ability to synthesize—to see connections between events and phenomena; understanding people (including yourself) - and with that the ability to forgive; internal freedom and independence - responsibility taken on voluntarily; love for the world and people (including oneself), this means that a person grows personally. Synonyms: mentally, spiritually.”

To finally understand what self-development means, it is enough to analyze the personal growth courses and business trainings that are so popular today. The latter are aimed at acquiring the knowledge and skills necessary for business development. That is, participants receive and implement ideas that allow them to take their own business to a new level, but their personality does not change in any way. At a business training, a person learns how to increase sales, how to properly present a product, how to optimize processes within a company, etc. But this knowledge is unlikely to make you think about your own values, the meaning of life, relationships, etc. Such events improve professional skills , but do not in any way relate to issues of personal growth.

Self-development courses differ significantly from business training. First of all, growth trainings are aimed at transforming a person’s personality. As part of these events, the problems, fears, beliefs and views of the participants are explored. Moreover, the format of such meetings can be quite diverse. But ultimately, personal growth training allows you to get rid of existing complexes, psychological trauma, resentment and mental anguish.

Personal development courses focus on challenges and opportunities rather than problems. For example, instead of worrying about a situation, think about options for resolving it. If you are afraid, stop making up excuses and justifications - take responsibility for your life and find your own motivation for new achievements. Distrustful introverts need to learn to see the good in people and stop shutting them out. Those who want to live a bright and fulfilling life do not need to try to break patterns - just take a creative approach to solving daily problems.

As you can see, personal and professional growth are significantly different. People come to self-development trainings with completely different needs. But in the process of working on oneself comes awareness or rethinking of one’s own life views, values, and meanings.

Teaching a teacher means motivating a student

In the teaching environment, a certain professional pathology is often observed: always teach and be right. This is the worst form of pedagogical extremism. The surest way is to remain a living person, capable of constantly learning. And first of all - in children. Exactly. The Socratic method is not about - absolute acceptance of the assumption of error. And at the next stage of the process, a joint search with the student for a way to achieve the truth.

Professional growth is expanding horizons to find a true solution together with students, and not the process of technical transfer of information from different media. The result can be assessed by the quality of student motivation in the process of finding the answer, and not in trying to “guess” what the teacher requires of him. The professional growth of a teacher is measured by the student's results. The rule has been known since antiquity.

Personal growth goals

Although personal growth is aimed at working out internal aspects, it is necessarily reflected in the outside world. One of the most striking signs of development is the realization by a person of his own plans. Mobilization of internal resources allows you to achieve your goals in an environmentally friendly way, without harming other people.

However, you can look at it from the other side. The process of personal growth cannot be imagined without setting appropriate goals. In fact, the desire to become better is already an independent intention. That is, following a certain goal ensures human development, and vice versa. But sometimes the plans outlined do not require the development of personal qualities. Then self-development acts as a basis that helps to achieve success in this matter.

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For example, if a person needs to improve the skill of persuasion, he does not need to develop any moral qualities. But in many trainings, learning this ability will be presented as personal growth. Depending on what is meant by development, improving this skill will or will not constitute personal growth.

If the ability to persuade is one of the conditions for the formation of an integral and harmonious personality, development must occur in accordance with certain principles. If a person defends his own point of view, resorting to manipulation, intimidation and pressure, this has nothing to do with self-improvement.

As already mentioned, personal growth is inextricably linked with the principle of environmental friendliness. In this context, the ends do not justify the means at all, especially if the methods used may harm others.

For example, if a person plans to open his own business, then his goal is to launch this project. It should be remembered that business is impossible without customers. This means that you need to pay attention not only to ways to promote the product, but also to its quality. The goal of a business should be to sell a truly necessary and high-quality product, and not simply make a profit. Personal growth in this case will be conducting honest and decent business activities. To do this, it is enough not to deceive your customers: sell products with a good shelf life, do not pass off a fake as an original, speak openly about all the characteristics of the product, etc.

And the very idea of a future business project should be environmentally friendly. It's no secret that today there are plenty of fly-by-night companies that disappear with the money of customers or partners. Yes, this is also a business, but it has nothing to do with moral development.

It turns out that personal growth must meet certain conditions. It is not enough to simply improve a skill; you must constantly work on your character and values.

Components of success in personal development

Developmental psychology includes several aspects. Here are the main components of personal growth:

1) Personal growth goals:

developing awareness and giving up mechanical habits,
compliance with modern times and rhythm of life,
development of intelligence and acquisition of comprehensive knowledge.

2) Personal growth plan:

determining the starting point,
visualization of the desired result,
development of a strategic plan for solving assigned tasks.

3) Motivation – determining the driving force for self-development:

“movement from” - dissatisfaction with current life,
“striving for” - action to improve the state of things.

4) Trainings on personal growth. The topics of personal development trainings are very diverse and only experienced coaches can tell you exactly where to start with personal growth. Physical exercise is also indispensable in the process of human development as an aid in strengthening self-control, willpower and self-confidence.

5) Creativity is the engine of progress, developing:

creative attitude to life,
the ability to be yourself
spontaneity and freedom of expression.

6) Improvement – the formation of three interconnected aspects of human life:

body development,
development of the mind,
spiritual development.

7) Foresight, or wisdom – the ability to objectively assess the present and plan the future based on possibilities.

Acquiring knowledge is the path to self-realization.

Where to start your personal growth and self-development

Self-improvement is a labor-intensive process aimed at working out the weaknesses of the individual, realizing one’s own potential and normalizing health. To reach a new level, it is enough to follow simple but effective rules.

Know Yourself Self-knowledge is a prerequisite for personal growth.
To evaluate the results of your own work, you need to understand where you are starting from at the moment. It is important to accept your strengths and weaknesses, temperamental characteristics, values and guidelines. It is also worth paying attention to how you contact the outside world and react to its manifestations. There are several ways to get closer to understanding your essence. Meditation, journaling, working with mood - each of these methods is effective. But real transformation begins when you find what lights you up, what makes you happy. If you want serious changes, turn to your own desires and dreams. Ask what kind of life your actions today will lead to. Are you happy with your current reality? How do you want to be remembered by this world? Think about it seriously to formulate a list of true goals.
Take responsibility for your own life and actions
Almost every time when all plans collapse, we complain about fate and blame others for our failures. Even if the situation seems out of control, do not rush into victim mode. Of course, not everything in this world depends on us; the environment can really have a significant impact on our lives. However, it is worth remembering that the last word is always yours. If there is no option to change the situation, you can reconsider your attitude towards it. This is the secret of transforming your own personality.
Develop a Self-Improvement Strategy

Setting goals is one of the most important stages for upcoming changes.
But in order to implement your plans, you need to understand what path you will have to go through. The most obvious and simple solution in this case is to create a plan to achieve your goals. Analyze your own aspirations, break all the work into small stages and decide what steps and actions you need to take. For example, you want to build a successful career, but at the moment you are working in a job you don’t like. You can take it to the next level with these steps:
• First of all, understand in which direction you want to realize yourself.
• Having decided on a profession, clarify what knowledge and skills are necessary for this activity.
• Receive appropriate training.
• Create a new resume that presents you as a competent specialist.
• Check out existing vacancies and respond to the most interesting offers.
• Once you find a job, quit your previous job.
• Demonstrate and prove yourself in your new position.
• Improve yourself in your chosen field and climb the career ladder.
Expand the boundaries of your own comfort zone

The concept of “comfort zone,” as well as “personal growth,” is familiar to almost everyone. This is a certain way of life in which a person avoids risk and stressful situations by performing familiar and ordinary actions. This is not to say that this level is bad. From time to time we all need a quiet environment to relax and recharge.
Almost everyone says that leaving your comfort zone is useful for self-development. You need to challenge, take on your own fears, take risks, test your strength. Sometimes the thought of making such changes can be scary, let alone taking action.
The sooner you think about personal development, the easier it is to get out of your usual routine. As you age, it is more difficult to change yourself, which means taking new actions is much more scary.
Despite all calls, you should not leave your comfort zone. Try to gradually expand its boundaries. Try something new or change the way you approach your daily routine. Take small but confident steps towards your own goals.
Be prepared for the fact that you will begin to sabotage your own changes. People often convince themselves that nothing will work out without even trying. We are afraid and doubtful, forbidding ourselves in advance to even dream of a new life. If you encounter this, change your focus. Try to understand what exactly is stopping you, why you look at the situation only from this angle. After that, turn to what inspires you to achieve, and step by step move towards your goals.
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Form effective habits
For this rule, the following saying is more relevant than ever: “When you sow an action, you reap a habit.” If you sow a habit, you will reap a character. If you sow character, you will reap destiny.” Indeed, our habits shape the existing reality. Useful and correct patterns allow you to grow and develop; harmful customs, on the contrary, worsen the quality of life. Changing habits is quite difficult, because they take years to form. But, if you really want to reach a new level, mobilize all your internal resources and move forward with strong will.

To put all these rules into practice, do the following:

Keep a personal diary. Try to write down the brightest moments, significant events, interesting discoveries, thoughts and insights every day.
Create a bank of ideas. Good thoughts come and leave your head completely unexpectedly. Record everything that seems interesting to you, without evaluating the practical side of the idea that has arisen. Literally write everything down. After a while, refer to your storage, analyze the direction of your notes. Perhaps it is this area of life that needs to be worked on.
Enter into dialogue with yourself. You can call this practice meditative, since here the subconscious is involved in the work. Give yourself 15–20 minutes so that no one disturbs you and nothing distracts you from the exercise. Take a comfortable position, close your eyes and concentrate on your breathing, try to feel every inhalation and exhalation. When you are completely relaxed, ask yourself questions. What do I really want? What should I be like to achieve what I want? What should I do? Repeat the questions mentally, then again concentrate on your breathing and relax. As a rule, the subconscious mind joins the process after a few days. The brain begins to produce interesting ideas that are necessary in this situation. All that remains is to write down and rethink the information received.

The above practices allow you to reach a new level of personal development. By understanding and being aware of your desires, you can form true goals and think through ways to achieve them.

Strategic development of the organization

Where can an organization or business as a whole move in its strategic development? In the most general form, abstractly, the organization has the following options for strategic development:

leave everything unchanged;
choose an internal growth strategy;
choose an external growth strategy;
choose a strategy for withdrawing investments.

Let's look at these strategic development options in more detail.

I. No changes

This is also a strategy, and, like any other strategy, it can be well justified by research into the internal and external environment. Typically, this means that the company will produce or supply the same product or service to the same customers. Such strategies are often used in companies with long product life cycles (for example, in the heavy engineering industries) and are most often seen as desirable in organizations of public education, health care, the judicial system, municipal services and others, where failure to implement changes is not simultaneously an existential threat organizations. Unfortunately, in a dynamic, constantly changing environment, such a conveniently stable position is unacceptable for most companies and will lead to their defeat in the competition.

II. Inner growth.

This group of strategies is based on the assumption that the organization is doing the right things and that these activities are worth expanding. It is assumed that the organization has sufficient resources for development. Another question is in which direction to orient it. There are four strategies that an organization focused on internal growth can follow: concentration, market development, product development, and renewal. Let's take a closer look at them.

Strategies for internal company growth

1. Deeper penetration into the market (concentration). Such a strategy requires a company to focus on doing at a larger scale and better what the company has demonstrated success at. This strategy is usually successful:

when existing markets are not saturated with a specific product or service offered by the company;
when the share of existing buyers can be significantly increased;
when the market share of the main competitors decreases, while sales in the industry as a whole are growing;
when there was initially a close relationship between sales volume and marketing costs in value terms;
when increased economies of scale provide key competitive advantages.

2. Market development. In this case, the company introduces various modifications of products to already developed markets. This strategy is applicable:

when new distribution channels are available - reliable, inexpensive and high-quality;
when an organization is very successful at what it does;
when there are new undiscovered or unsaturated markets;
when the organization has the necessary capital and labor resources to cope with the expansion of production;
when an organization has excess production capacity.

3. Product development. The strategy involves significant product modifications or adding new ones to existing products in order to develop its presence in the market. The most successful strategy:

when a company starts a new activity;
when the organization has successful products that are at the maturity stage of their life cycle; the idea is to retain customers satisfied with its products (prices) as consumers of its new products in the future;
it makes sense to offer new (improved) products based on the positive experience of selling existing products and services;
when an organization operates in an industry characterized by rapid technological development.

4. Update. This strategy involves significant changes in products or services. Involves replacing existing products with new ones, which means a new product life cycle. Such a strategy can significantly increase the company’s prestige and create a competitive advantage, but is quite expensive, so it requires appropriate financing.

Internally driven growth or internal growth strategies are market development or product development or both, simultaneously or sequentially, through the use of organizational resources. Table 1 presents four internal strategies that appear independent of each other, but are actually closely related.

Table 1. Combinations of product-market strategies

Products
Existing	New
Markets	Existing	Market penetration or concentration	Product modification, development or update
		Reliance on a single product in a single market	Offering new products in existing markets
		Focus on significantly increasing market share	Extending or extending the product life cycle
	New	Market development	Internally related diversification in technologies and markets
		Delivery of existing goods to new areas	Unrelated diversification, where products are not related to existing or markets
		Changes in distribution and advertising

All of these strategies build on existing strengths, focus on relatively low-risk activities, and concentrate on existing products and markets.

There are a number of reasons why companies intend to pursue internal growth strategies. For example, an existing product (or service) is in a market approaching saturation, or the organization may expect synergies from pursuing this strategy (i.e., by adding more products or services, unit fixed costs can be reduced as much as occurs with economies of scale). Alternatively, a company may have a surplus of resources and therefore may decide to invest them in developing a new product. A company may wish to extend the life cycle of its product or increase sales of the product into additional, potentially profitable segments. The company can find new ways to produce a product that can be implemented without changing prices and in the same production facilities, and also focus on the same customers. Finally, psychological factors should not be ignored. For example, performers may become tired of working with a single product.

Let us consider in more detail the characteristics of the internal growth strategies presented in the table.

Characteristics of internal growth strategies

1. Concentration (deeper penetration)

T. Peters and R. Waterman (1988) called this type of strategy “doing better.” Concentration is based on a number of clear principles, which can be presented as follows:

growth is an important task;
it is necessary to constantly search for more efficient ways of production;
the strategy focuses on one product and tries to gain a larger share of the existing market;
Advertising is widely used to attract new consumers or users, as well as to increase the level of consumption of existing ones;
it allows you to capture consumer and market share from competitors.

1.1. Advantages of the concentration strategy:

is based on the known capabilities and capabilities of the organization;
a highly focused strategy can effectively develop existing skills to create competitive advantage;
the company can be more sensitive to market needs and gain a reputation in this area;
This is usually a low risk strategy;
gradual growth is easy to track from a management perspective.

1.2. Flaws:

it is more a progressive than a revolutionary strategy;
there are limits within which growth can take place in one market;
the company pursuing this strategy is subject to changes in consumer preferences and downturns in the economy;
it imposes significant responsibility on the company in monitoring the actions of competitors;
it also imposes responsibility for maintaining the level of innovation in its own products;
it requires significant financial expenses for advertising and product promotion.

2. Market development

This strategy involves moving a company into new market areas using existing products or services. It can take several forms. A firm may decide to modify its product slightly to make it more attractive to certain markets. (This is what some automakers do, for example, adapting their models to the characteristics of a particular geographic region.)

Let's look at the advantages and disadvantages of a market development strategy.

2.1. Advantages:

the strategy builds on existing strengths, skills and capabilities;
it is a strategy with relatively low commercial risk;
implementation of the strategy can provide significant income at relatively low costs;
it can provide enough income to develop a new product.

2.2. Flaws:

The scope of the strategy is limited: it is usually suitable when the product is at an early stage of its life cycle;
requires significant market research;
It will likely be difficult to identify specific market segments to target;
An organization may not be able to meet the needs of an identified market segment due to lack of capacity or other reasons.

3. Product development or update

This strategy option is most suitable for existing markets, and it may include new types of products resulting from technical developments or modifications (improvements). The following number of reasons for preferring this strategic option can be identified:

designed to improve the company's competitive position by attracting new customers;
designed to extend the product life cycle;
allows you to benefit from professional skills in areas such as research and development;
helps the company meet new needs in the market or cope with the problems of possible substitutes;
often simply necessary for the survival of the organization;
can be used to enhance product differentiation.

The update is a component of new product development. It involves major changes to a product or service. Renewal can significantly enhance a company's prestige and allow it to create a competitive advantage. However, this is an expensive strategy. Constant renewal requires that other products and strategies be successful and that adequate funding be secured.

These strategies have the following advantages and disadvantages.

3.1. Advantages:

New product development plays an important role in determining profitability later in the product life cycle;
it may have spillover effects from a manufacturing process perspective (eg, improved quality control, faster delivery, lower production costs);
in companies that produce products with short life cycles, it is necessary if continuous growth is to be achieved.

3.2. Flaws:

This is a relatively high-risk strategy: there is a high probability of failure of the new product;
requires significant investment in research, development and advertising.

4. Diversification

A company can diversify internally either by creating products or services that are similar to existing ones in terms of technology or markets, or by creating products that are completely different from existing ones. An example of the first type of diversification could be the construction of car washes or car services at gas stations: all these types of activities are aimed at the same clients - car owners. The second type of diversification would be the decision to build a hotel for a gas production company.

There may be different reasons why a company seeks to diversify. Let's highlight some of them:

new products may have cyclical sales patterns that balance the sales cycle of the organization's existing products;
the organization's existing distribution channels can be used to sell new products (services) to existing customers,
the profit received from the organization's existing products or services can increase significantly due to the addition of new, unrelated products;
Diversification may be necessary because the organization competes in a highly competitive or non-growing industry, resulting in low profit levels.

Let us note certain advantages and disadvantages of diversification.

4.1. Advantages:

may be necessary for the firm to survive over an extended period of time;
often leads to synergy;
promotes the efficient use of excess funds;
provides an organization with a broader range of products or services.

4.2. Flaws:

diversification is required on a large scale for strategic success;
organizations may not have the knowledge and experience to handle new products or services well;
may require significant investment in new technology;
This is an incremental strategy: it takes time to generate profits.

A key issue in choosing a strategy will be financial impacts. We have noted four internal growth strategies. Each has different financial impacts in terms of the amount of financial resources required to implement the strategy; the level of financial return expected from the chosen strategy; distribution of financial returns over time; financial synergy opportunities; the level of risk associated with the implementation of strategies.

In table Figure 2 presents an analysis of each of the internal strategies based on these criteria.

Table 2. Financial Impacts of Various Domestic Growth Strategies

Financial criteria	Internal Growth Strategies
Financial criteria	Market penetration (concentration)	Market development	Product development or update	Diversification
Required financial resources	Moderate	Moderate to significant	Significant / very significant	Very significant
Level of expected financial return	Moderate	Moderate to high	Very tall	Very tall
Distribution of financial returns over time	Medium to long term	Short	Long term	Long term
Existence of financial synergies	No	Eat	Maybe	Eat
The degree of risk associated with the strategy	Low	Moderate or high	Very high	High

Based on consideration of the financial impacts of various internal growth strategies, the following conclusions can be reached.

Diversification is a high-risk strategy. From a financial point of view, it requires significant investments. The financial return will most likely be received in the long term. At the same time, if the strategy is successful, the level of financial return can be significant and there is a high probability of achieving financial synergies.

Product development or renewal should also be considered a high-risk strategy. From a financial perspective, this strategy consumes a significant amount of financial resources, but the return can be significant if the product is successful. In the case of product modification, the payoff may be significantly less, as well as the risk contained in this choice. Returns are likely to be received in the long term.

Market development requires moderate to high levels of financial resources. This mainly depends on whether the markets are domestic or foreign. In the latter case, financial resources can be significant. The level of financial return will also be moderate to high, but the return can be realized in a short time. The level of risk is moderate to high, depending on the market being developed. However, foreign markets may have a higher level of risk. There is a strong potential for financial synergies to accrue as this strategy is implemented.

Deeper penetration or concentration on a single product or market should be assessed as low-risk strategies that require moderate levels of financial resources and promise reasonable returns, usually over the long term. Since costs are not spread across many products, financial synergies do not arise in this case. Small firms often find themselves in a similar situation.

III. External growth

These strategies are implemented through acquisitions, mergers, vertical integration, and diversification (i.e., the distribution of effort and investment among a variety of activities whose results are not directly related to each other). Typically, an organization is pushed towards external growth by the results of an environmental analysis: conditions are found in the environment that make it possible to combine the strengths of the organization and the ability to increasingly actively manage elements of the external environment, up to the inclusion of some of them in the company.

Strategies for external growth of the enterprise

1. Horizontal integration or merger of two or more companies engaged in the same field of production.
Strategy means that a company acquires or merges with a major competitor or with some other company operating at the same stage of the value chain. For example, currently the task of interregional horizontal integration of companies by type of business has been set by RAO UES of Russia. 2. Vertical integration or a combination of diversified companies, the production of which is connected by a single goal. An example could be the acquisition of a glass packaging plant by a concern producing various drinks. The strategy typically involves acquiring a company that supplies the firm with raw materials or is a buyer of its products and services. This can be done in the reverse direction of the value chain (i.e. in the direction of control of the supply of raw materials) or in the forward direction (in the direction of control of the distribution network). Direct integration makes sense:

when the organization's existing distribution network is extremely expensive, unreliable or unable to meet the organization's product (service) distribution needs;
when the quality distribution network is limited in such a way that it gives competitive advantages to those firms that have it;
when the organization has both the capital and labor resources necessary to cope with the new activity of distributing its own goods;
when the benefits of stable production are especially great; in this case, the organization can increase the demand for its products through direct integration;
when existing wholesalers or retailers have higher profit margins than the company; this situation suggests that the company can itself profitably distribute its own products and price them more competitively through direct integration.

Backward integration is appropriate in the following cases:

when the organization's existing suppliers are extremely expensive or unreliable or do not meet the company's needs for parts, components or raw materials;
when the organization competes in a manufacturing industry that is growing rapidly; therefore, diversification (transition) into an industry with a decline in production is less profitable;
when an organization has both the capital and labor resources necessary to cope with a new type of activity in supplying itself with its own raw materials;
when the benefits of stable prices are especially important; By adopting this strategy, an organization can stabilize the cost of raw materials and the associated prices of its products through backward integration.

3. Concentric diversification. Involves the introduction into an area of goods or services that are related to existing goods or services through technology or marketing. This strategy provides the possibility of synergy, that is, a situation where the overall result exceeds the sum of the individual results of two types of activities. This is exactly how, for example, the Nestle corporation behaves, the world's largest food manufacturer, which initially specialized in coffee, and is now positioning itself in other areas - the production of confectionery, fast food, pet products, pharmaceuticals, and drinks. Generally speaking, this strategy is recommended under the following conditions:

when the organization's main industry experiences a decrease in sales and profits for the year;
when the addition of new, but related to existing, products significantly stimulates sales of existing products;
when new, but related to existing, goods can be offered at highly competitive prices;
when new, but related to existing, products have seasonal sales levels that balance existing peaks and valleys in the organization’s activities;
when the goods produced by the organization are in the decline stage of their life cycle;
when the organization has a strong management team.

4. Conglomerate diversification. The strategy involves a company's entry into areas of goods or services that are not directly related to existing technologies or markets. It is considered a high risk strategy. For example, in 2002, specializing in the production of beverages, it acquired a 60% stake in the large metallurgical enterprise Dneprospetsstal, planning to enter a new market. But the management of non-core production caused a number of such serious problems that within a year the shares were sold. We can say that this strategy is justified:

when the industry in which the organization primarily operates experiences a decline in annual sales and profits;
when the organization has the capital and talented managers necessary to successfully compete in a new industry;
when an organization has the opportunity to acquire an unrelated enterprise that is an attractive investment opportunity;
when there are financial synergies between the acquired and acquiring firms;
when the organization’s existing markets for selling its products are saturated;
when legislation restricting competition can be used against an organization that has historically concentrated in one industry.

The potential for external strategies is significant. They are typically implemented through acquisitions, mergers and joint ventures, or may involve partnership arrangements with companies that are at the beginning or end of a given company's existing value chain, from raw material producers to end consumers. The main objectives behind these various forms of growth are to increase market share and the ability to achieve financial synergies.

There are a number of benefits that can be achieved by companies that choose externally funded growth strategies, such as the following:

growth through external funds is faster than in the case of focusing on internal growth strategies;
allows you to reduce competition by acquiring a competitor;
it becomes possible to quickly acquire necessary resources, such as new technologies or management skills;
allows you to balance or replenish the company’s product range;
provides a chance to achieve stability in the company's profits and sales: this is usually achieved by acquiring businesses whose income and sales structures balance the company's peaks and valleys;
allows you to increase efficiency and profitability; this is achieved through synergy;
provides the opportunity to make smart investments through the acquisition of businesses that can provide better use of funds than reinvesting them in an internal growth strategy.

These are some general reasons for implementing external growth strategies, but now we will concentrate on exploring specific external growth strategies - diversification (concentric and conglomerate) and integration (horizontal and vertical).

Diversification

Such strategies are characterized by the expansion of the existing portfolio in terms of product and market: the company expands the range of its activities by launching new products or developing new markets. It should be noted that diversification and acquisition of another enterprise are not synonymous. An acquisition may not lead to diversification (if a single-profile enterprise is acquired, for example, a company that owns a network of gas stations acquires another gas station), and diversification, as mentioned earlier, can also be achieved through internal development (if a company, relying on internal resources, begins develop new directions in their activities: the same company - the owner of a gas station can begin construction of multi-storey car parks).

As a rule, the main reason for diversification is the desire to reduce risk: failure in one area of activity can be compensated by success in another in the case of a diversified business. Thus, the firm's dependence on one product or market it has developed is reduced. In addition, diversification ensures the efficient use of available funds. For example, if an organization has several cash cow businesses (that is, those that generate a lot of cash), it can invest the profits in new areas of activity. This is especially important if the organization's primary industry is in decline, in which case diversification may be a route out of that industry.

A distinction is often made between concentric and conglomerate diversification. What are the differences between these two types of strategies?

Concentric diversification is used when an organization acquires businesses that produce products or provide services that are similar to existing products or services. (For example, the acquisition of another gas station by a company that owns a number of gas stations.) Organizations wishing to diversify concentrically by external means will look for business organizations that are significantly related to them in terms of markets, distribution channels, technology and resource needs. The financial benefits of concentric diversification typically accrue over a medium to long term.

Conglomerate diversification occurs when an organization acquires businesses that produce products or provide services that have no obvious connection with existing products, services, and markets. (For example, a construction firm acquires a store.) Conglomerate diversification often produces significant financial synergies. This may be due to opportunities to gain some tax advantages, better use of financial resources, etc.

This strategy is generally considered to have a high level of risk, since the company may not have the management skills necessary to effectively manage a new enterprise of a different profile. This strategy is mainly suitable for large companies that are less sensitive to price changes.

Integration

Integration can take place in two directions: horizontal and vertical. Accordingly, two types of strategy are distinguished.

Horizontal integration . Most typically, a horizontal integration strategy occurs when a firm acquires or merges with a major competitor or a company operating at a similar stage in the value chain. However, two organizations may have different market segments. The combination of market segments due to a merger gives the company new competitive advantages, and in the long term promises a significant increase in income. We can cite a number of characteristic reasons that contribute to the choice of a horizontal integration strategy, among them we note the following:

horizontal integration may be associated with the growth characteristics of a manufacturing industry (eg, rapid growth);
increased economies of scale as a result of the merger can enhance key competitive advantages;
the organization may have excess financial and labor resources, which will allow it to manage an expanded company;
pooling may be a means of eliminating a product that is a close substitute;
the competitor they want to buy may have a significant shortage of financial resources.

Vertical integration . This strategy means that the company expands in activities related to the promotion of a product to the market, its sales to the final buyer (forward vertical integration) and related to the supply of raw materials or services (reverse vertical integration). Forward vertical integration protects customers or the distribution network and guarantees the purchase products. Reverse vertical integration aims to secure suppliers who provide products at lower prices than competitors.

Vertical integration also has a number of advantages and disadvantages, some of which are given below.

Flaws:

Vertical integration has a tendency to increase risk: the concentration of an organization on one market segment increases its dependence on the general state of affairs in this industry;
vertical integration may lead to less flexibility in decision making due to changes in the external environment. This arises because a company's competitive advantage is related to the competitiveness of the suppliers or buyers included in the integration process;
it can also create significant obstacles for a company to exit this type of business, as the degree of attachment of the company's assets increases. They will be much harder to sell in a downturn;
new divisions of an organization may require different management skills. This can be a significant expense and will increase the degree of risk inherent in the strategy.

Advantages:

New savings opportunities arise that can be realized. These include better coordination and management, reduced handling and transportation costs, better utilization of space, capacity, easier collection of market information, reduced negotiations with suppliers, lower transaction costs and benefits from stable relationships;
vertical integration should guarantee delivery organizations within tighter deadlines;
This path allows one to counteract the significant market power of suppliers and buyers.

IV. Decline or divestment

With these strategies, money is not invested for growth. These strategies are typically used in crisis situations and include the following measures.

1. Savings . This measure involves the implementation of recovery actions in order to cope with the situation of declining profits. This strategy is used if, as a result of external and internal analysis, it is concluded that the company can survive if it recovers. Savings may include actions such as reducing costs, creating additional sources of income, reducing assets, or all of these actions simultaneously. All of these actions involve tightening cost controls.

2. Shift . Involves the adoption of a new strategic position for a particular type of product or service. Freed resources are redirected to that specific area. An example of such a strategy is reducing the range of goods (services). To do this, it is necessary to determine which of the individual goods (services) are the least and most profitable, and reorient production to those goods (services) that will help the company survive in difficult times.

3. Withdrawal of investments . They usually involve the sale of part of a business. Such a sale could provide desperately needed resources to develop the remaining areas of the business. The most common form of divestment today is a “management buyout,” where part of a company is sold to its management. The parent company (the one that previously owned the company) may retain a stake in the company being sold for a certain period of time. Typically this share is equal to the amount of deferred payments. Let's illustrate this with an example. A company with the code name “Alpha” owns a car service center and a store, but the crisis forces it to sell the car service center, as the least profitable part of the business, in order to provide better financing for the store. The car service is transferred into the ownership of the existing management - the manager(s) simultaneously become the owners. Buyout by managers is convenient for both parties: there is no need to look for a buyer, the management team that becomes the new owner of the car service has complete information about the enterprise, relationships and continuity are maintained. But, as a rule, management cannot immediately buy out the enterprise due to the lack of free funds, so an agreement is concluded on the gradual repayment of the debt at the expense of the enterprise’s profits. Alfa, no longer participating in the activities of the car service, regularly receives a certain part of its profit, but as the debt is repaid (which can take several months or several years), the percentage of shares in the car service owned by Alfa decreases. When the new owners fully pay the amount agreed upon when the car service was transferred to them, Alpha loses its share in this enterprise.

4. Liquidation . Involves the sale of an entire enterprise, either in its entirety as a going concern or in parts to different buyers. Elimination is a last resort and is used when other measures no longer work.

In the presented spectrum, strategies are not mutually exclusive, and organizations can use various combinations of them to achieve their goals. As discussed, there are many strategic alternatives available to a company, and therefore the potential for error is significant. The important question to ask here is: How can we achieve a strategic fit between the organization's capabilities and its desired goals? The answer depends on an analysis of the external forces affecting the company, as well as its strengths and weaknesses (internal analysis). Next, we will analyze the types of possible strategies.

Bizkiev, Zub A.T.

What you need to know about personal growth trainings

Personal growth training is a fairly common thing in the life of a modern person. However, some people misunderstand the meaning of self-development courses and confuse them with psychotherapy. Of course, training allows you to solve certain psychological problems, for example, develop self-confidence and improve certain personal qualities. But the classes are aimed at working with mentally healthy people, and therefore do not relate to psychotherapy.

The main objectives of self-development training are to increase a person’s potential, identify and develop the facets of personality, which allows them to achieve success in various areas of life. In the process of working on oneself, the worldview changes, thanks to which the course participant acquires new qualities and habits, and forms an attitude towards what is happening.

There are two types of such trainings. Some stimulate natural, passive transformation, others are aimed at active personal growth. Let's consider each option in more detail.

Natural personal growth trainings allow you to strengthen your inner strengths and get rid of beliefs that limit a person’s qualitative growth. Participants in the training work through various situations without focusing on the actual fact of transformation. Natural changes occur in accordance with a person’s internal attitudes. In this format, the coach’s task is to create optimal conditions for personal development. The training can be aimed at working with both the past and the present. By attending classes, a person finds answers to pressing questions, forms a model of behavior for various situations, and learns to interact correctly with the outside world.

Transformational trainings are considered the best natural growth courses. They allow you to expand the boundaries of your worldview, achieve a kind of enlightenment, get rid of limiting beliefs and the negative influence of the environment. After undergoing transformational training, a person realizes his inner potential, focusing on new opportunities and goals.

During active personal growth trainings, personality transformation occurs at the level of self-identification. The process itself involves obtaining certain knowledge and developing the necessary skills. Such events include training aimed at developing leadership qualities, increasing professional effectiveness, educational training, etc.

Classes can be held online and offline. The result of any training is the activation of thinking, rethinking of one’s own values, beliefs and plans.

Why don't people want to develop?

It's not that simple at all. Therefore, people who spend a lot of time reading literature, or endlessly attend trainings, but do nothing on their own, or do not study personally with a coach, remain in their original positions. What are the reasons for all this:

Lack of willpower

Procrastination or constant putting things off, or simple laziness, prevent a person from moving towards his goals. In some families, parents raised willpower in their children, while in others they did not. But this does not mean at all that you cannot raise her yourself. It's like a muscle, the longer you train, the better the results.

There are two approaches to training willpower: Do OR Don't. Our body will find thousands of reasons not to do it, since it does not want to leave the “comfort zone”. But as we wrote earlier, “if you do everything as always, then you will get the same result as always.”

Start training yourself with daily, constant actions: exercise, church fasts, daily 40-minute walks, maintaining a family budget, monitoring expenses and your free time. You need to make plans and carry them out. Otherwise there will never be a result.

Willpower is a spiritual quality, and it is cultivated by people with very high awareness.

Just by developing this quality you can achieve dramatic changes in your life.

Lack of motivation

A person needs a very strong desire to motivate himself to change. And as a rule, our inner voice often tells us: “Well, why do you need this? And so good!” And everything remains in the same place. Therefore, a person will never lose his extra 20 kg. Because you need to seriously deny yourself something, spend time on sports, count calories. To limit yourself means to deprive yourself of “sweets”. Who, the one who loves him, would bring himself to this?

In order to have motivation, you need to set the right goals, clearly see and visualize the result of what you want. And only then with willpower and overcoming yourself can you get results. The proverb: “Without labor, you can’t catch a fish out of a pond”... that’s what it’s about!

Lack of time management

This is another reason that slows people down on the path to their goals. There are plans, but there is no exact time when they will begin to be implemented. And this is a big mistake. Many people try to start “on Monday”, “on New Year”, etc. and they never start. Time is the most valuable resource. So years pass, but “things are still there.”

It’s not enough to plan, it’s also worth tracking the implementation, and giving yourself pluses for completing it, and be sure to encourage yourself.

Lack of discipline

Here you only need to write one thing: if you have started, then for at least 21 days you should do it every day, without days off, and without excuses. The body “will not help you in any way”; it will even “invent” a disease. But you still try and do it. This is the only way to get results.

Useful books on personal growth

Thematic literature will be an additional help for successful work on yourself. We recommend that you pay attention to the following publications:

“Be afraid... but act! How to Turn Fear from an Enemy to an Ally" by Susan Jeffers. The book contains effective ways to get rid of limiting beliefs. The author explains how to take responsibility for your own life and stop succumbing to the manipulations of your environment.
“Think slow, decide fast” by Daniel Kahneman. The work examines the features of slow and fast thinking. Kahneman shares decision-making mechanisms, tells how to avoid rash actions and direct energy in the right direction.
“Project Happiness. Dreams. Plan. New Life" by Gretchen Rubin. The book is a step-by-step guide for personal development. After reading, you will be able to determine your true goals and desires, and also receive recommendations that will help you become better and more productive every day.

Law One: Growth is a Process

We humans need constant development. The world moves forward, and if you don't keep up with it, you will inevitably slow down or, worse, degrade. This cannot be allowed, because otherwise you may find yourself on the career and intellectual sidelines.

It is not enough to get a diploma once and consider yourself an expert in your field: if you do not improve your skills, they will lose their relevance, and knowledge will sooner or later become outdated. It is important to monitor the market and determine in time what skills are in demand today.

How to find yourself and your business if you don’t know what to do

Each of us experiences periods of stagnation when we want to give up everything and run away from the outside world. This state does not bring much joy, but it can become a starting point for change, a moment of rethinking. Fatigue and blues are one of the signs that something is going wrong. Instead of struggling with depression and apathy, go on an exciting journey straight into your inner world. Try to remember what you want from life, what is the meaning of your life, what goals light you up. Once you find the answers to these questions, move on to decisive action. All you have to do is start doing what you like, and there will be no trace of depression left.

On the path of personal growth, many women and men face the problem of self-identification. Not everyone understands who they are, much less what they want to do. You can find the area of personal development in several ways:

Dedicate yourself to what you love. There is no need for unnecessary explanations here. When you do what you love, and vice versa, love what you do, you become happy.
Go through all the options

This trial and error method can be divided into several directions:

Spend time on things that interest you.

Almost every person has a hobby, but only a few know how to derive profit and benefit from it. Hobbies are always pushed into the background; it’s not as serious as, for example, work. Who might like what I do?

A striking example that breaks this pattern is blogging. Yes, at first it seemed strange, then the number of bloggers began to grow at incredible speed. Having shown themselves on social networks, such personalities become media figures. They are no longer just people on a smartphone screen - many bloggers appear on the radio, host TV shows and even act in films. Who at the beginning of their journey would have thought that their life would be interesting to at least someone? Almost no one can guarantee success in this matter. But if you take your hobbies seriously, you have a chance to make yourself known to the world.

Try to regularly devote time to upgrading the areas of your life that interest you. Gather a community, team up with like-minded people and constantly improve in what you love.

Don't be afraid to make mistakes

There are situations when there is no favorite activity that lights you up.
Something interesting, but nothing more than superficial. In this case, it's time to come up with a hobby. Just write down all the ideas related to your interests. What would you like to do full-time? Drawing, aircraft modeling, yoga, programming, design - feel free to capture everything that seems attractive. After analyzing the list, imagine how you implement each of the ideas. If your imagination paints pleasant pictures and you feel an emotional uplift, try learning a new activity. And even if you don’t like it, just move on to the next item on the list.

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You should not force yourself to do something for your own development. This path will not lead to anything good. At the very least, you will waste energy and strength in the wrong direction. Even worse, doing something you don’t like often becomes the reason for the development of complexes and various diseases.

Visualize

Remember the phrase “I think, therefore I am”? It means that personal growth begins with a change in thinking. Philosophy calls this way of thinking transcendental. That is, first you work with internal attitudes, and then move on to actions that lead to the desired results. Therefore, concentrate more often on your own development, think about plans and opportunities. This way you will understand in which direction you need to move.

Start doing

Of course, it is important to tune yourself to a certain wave. But the only thing that will bring real results is action. Everyone wants to be successful, beautiful and rich, but only a small part of people move from dream to business.

Don't forget that only you are responsible for your life, actions and environment. Stop worrying about what others think. You will always be criticized no matter what you do. Personal growth is not easy, but only by working on yourself can you become better.

Advice from a neuroscientist

The famous neuroscientist Wendy Suzuki (her book is on our RECOMMENDED page) suggests changing psychology by reinforcing it with physiology. To do this, she and her students engage in sports exercises during a lecture on neurobiology. For example, the following interesting conclusions can be drawn from her work:

Any physical exercise, and especially its repetition, increases the release of positive neurotransmitters (pleasure hormones in this case) in the head. These hormones immediately improve your mood, and last two hours after training, and even your reaction time improves. The same can be said about race walking at a speed of 4.5-5 km per hour.
Once you begin to exercise regularly and physically train your body, your memory improves and new neural connections appear. This means that the rest of your brain cells undergo these changes. Of course, treating Alzheimer's disease and memory loss is difficult. But it is possible to improve the consequences of senile dementia.
You don’t have to go to the gym; you can walk in the park at a sporting speed 3-4 times a week for just 30-40 minutes to train your heart muscle. In addition, if you add useful affirmations, your well-being will improve significantly.

And then you will definitely understand the difference between the word I want and the word I really feel. Summing up, in order to see changes when practicing self-development, you need to do everything consciously and physically, and then there will definitely be personal growth!

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One-year program for successful personal growth

We have already said more than once that personal growth must occur according to a certain plan. If you break down big goals into small tasks, achieving big goals won't seem so daunting. The strategy does not have to be designed for any long period. There are both short-term and open-ended goals.

We advise you to take a closer look at the annual personal growth plan. The following program will help you improve all areas of your life in just 12 months:

January

The beginning of the year should be devoted to the issue of self-confidence. Work through existing fears, complexes, grievances, etc. It is impossible to gain heights without freeing yourself from excess.

February

During this period, it is worth taking care of finding a purpose. Think about what you want and outline a vector of personal development.

March

The beginning of spring is the time to set bold and ambitious goals. Try to eat the elephant one piece at a time: break big tasks into simple steps and make a plan for upcoming changes.

April

Schedule your time according to your schedule. Check your diary periodically to stay on track.

May

This is a wonderful time when nature literally comes to life. Start transforming along with the world around you! It's time to take the first steps towards your dream! To maintain a positive attitude and motivation, keep a success diary and record any, no matter how small, victories.

June

In the first month of summer, it is worth paying attention to mental health and relaxation. You have already done a lot of work and received the first results of your own transformation. It's time to learn to relax, to find a balance between active action and rest. For example, incorporate meditation into your daily routine.

July

At this time, it is worth taking care of your relationships with your environment. Perhaps you got too carried away with “achievement” and forgot about the people you really care about. Pay attention to your family and friends, because there will always be a lot of worries, and lost time cannot be returned.

August

Devote yourself to creativity. Creativity and ingenuity are integral companions to personal growth. Figure out how to add variety to your usual daily activities, and, conversely, find new hobbies. Yoga, artistic modeling courses, vocal master classes - express yourself and discover new facets of your personality.

September

The beginning of autumn is always a moment of assessment and rethinking. Analyze the path you have taken and outline new horizons. Perhaps you should learn a new profession or attend thematic courses. It's time to bring unrealized plans and desires to life.

October

Finding a new environment is an essential stage of personal growth. Visit unusual places, make acquaintances, develop business connections. Be prepared for a little discomfort: other people, unusual topics of conversation - it can be scary. But as you grow personally, you will improve your communication skills and take a worthy position in the new community.

November

It's time to monetize your hobbies and passions. Think about how you can benefit people in exchange for a decent monetary incentive. Develop a strategy for promoting your own products and services.

December

As you close out the year, take stock of your progress. Remember the brightest moments, all significant achievements, evaluate your own success. This will help formulate plans and objectives for the next 12 months.

How to change yourself

You need to change your thoughts.

Reading books and working with a psychologist, you can remain in a state for a long time that “everything is clear.” But you also need to take and take action regarding these changes yourself. You don't need to think, but do everything physically.

You can't do without positivity

Everything you do must be done with a positive attitude. If every time you say that “I can’t”, “I can’t do this”, “this is hard”, then you will never move forward. A positive attitude and desire are required. Be sure to monitor your negative thoughts and change them into a positive mindset.

However, we should understand that not everything will work out the way we want. Something will not go at all as we planned. But even in this case, you shouldn’t despair and give up everything. We need to move on.

What do I want to change by engaging in self-development and personal growth?

It's worth asking yourself a few questions:

What do I want to start doing?

For example, learn to swim or ride a bike. Or maybe learn to set goals and plan.

What do I want to stop doing?

For example, working at a job you don’t like, or maybe smoking, engaging in idle pastimes and watching endless TV series.

What would you like to buy?

Some people want to acquire new skills, others want to find a new job and improve their income. Or maybe you want something material. It is worth thinking carefully about this issue.

What do I want to change in my life?

For example, place of residence, or maybe country of residence. Lifestyle, gain financial freedom or monetize your hobby.

Origin of the term

The term “personal growth” was originally formulated by American psychologists Abraham Maslow and Carl Rogers. They are also the founders of humanistic psychology. A little later, the term “personal growth” began to be widely used by other psychological trends.

The original concept of personal growth was based on the assumption that every person has a positive inner nature. That is, under certain circumstances, any individual is able to develop and also demonstrate his positive qualities: kindness, honesty, compassion, mercy, and the like.

In the concept held by Maslow and Rogers, a person, under appropriate circumstances, will manifest those positive qualities that are already inherent in him. If the environment is not conducive to this, then personal growth may be difficult or will not occur to its full potential.

Some psychological movements view a person as an entity that does not possess initially positive qualities. That is, a person in such concepts is initially neutral, but in the process of personal growth he can acquire positive qualities.

Examples of principles

For example, almost everyone understands that stealing is bad, but being honest is good. But if you conduct a survey among people in the office and ask them if they have ever stolen? Many will say no. These people really think so.

Ask them if they consider themselves honest. Many will answer yes. But at the first opportunity, they will print out their personal documents and letters on office paper. Among these people there are many who will not buy a train or bus ticket at the first opportunity. There will also be those who will not return the incorrectly calculated change. Little things like this happen every day. So is it right to talk about honesty and the absence of theft in such cases?

Or another example. The girl wants to get married, but she signs up for courses for “chic women.” Where they teach how to promote a man with money. Where they teach how to manipulate, lie, how to get benefits, and get married by deception. Where they teach you to kindle sexual desire in a man, and then use it.

But will such trainings develop love, kindness, and the ability to understand another person? And does a person go to such training only for the purpose of obtaining personal gain, or is he really based on the principles of goodness and love?

Law five: growth must be systemic

You need to grow constantly, systematically and systematically. Make self-improvement a habit and track the results. For example, set a goal to increase your income every year. If five years ago you rode a tram, and now you have switched to a personal car, then the movement is going in the right direction.

If the situation is the opposite, and you moved from a three-room apartment in the center to a one-room apartment on the outskirts, it’s worth working on your mistakes. The main thing is a firm intention to change and develop yourself. What is important is systematic, albeit small at first, victories and clear steps forward. As Steve Jobs once said, “All the greatest people started with something small.”