Middle market companies in the United States are comprised of firms from all industries with yearly revenue ranging from $10 million to $1 billion. There are a number of characteristics that these companies embrace to keep their champion profits at the top.
1. Strong Management Culture
Strong management culture is a common thread among middle market companies. These companies have managers who are nimble and know how to implement efficient operations. It is these intrinsic elements that give managers the ability to respond quickly to external challenges such as the competition and new opportunities. It is a strong corporate culture that reinforces itself.
2. Open to Innovation
Being open to innovation is another characteristic that middle market companies exhibit. About 72 percent utilize homegrown innovation and rely on their own dedicated teams to identify innovation projects in their products and services.
Innovation does not stop there. They seek out innovation by venturing a bit into new markets and accumulating new knowledge. At the same time, middle market companies are savvy about how they innovate. They manage innovation risk carefully.
3. Career Development Opportunity
Middle market companies create career paths and offer career development opportunities for employees. With training, employees are afforded promotions and upward mobility. It is these types of internal strategies that create company loyalty and lower the risk of losing talented workers.
As well, many of the top performing middle market companies tie compensation to meeting growth goals. Internal objectives are set, and employee progress is tracked. Their focus is on hiring an effective and active sales force.
4. Recruiting Top Talent
Middle market companies have the ability and recruiting power to attract talented employees with the right skill sets, and they are creative in how they go about it. In addition to using specialized recruitment agencies, some larger middle market businesses purchase smaller companies in the same industry to bring on experienced middle managers and senior officers who can help the company grow. Other middle market companies open new offices and facilities in talent-rich markets. For example, a Northeast city like New York City is a haven of talent.
5. Customer Loyalty
Customer loyalty is a must-have for any company, but many middle market companies take it to a whole new level. They are now establishing digital-physical integration to communicate with customers in a more in-depth way. They integrate social and mobile social platforms with 24/7 interaction opportunities for customers. This strategy helps shape service and product development, generates additional sales leads, increases revenue, and improves the overall customer experience.
With smart strategies that work in the 21st century, middle market companies are poised for success.
For more information, read our ultimate guide to recruiting and hiring top executives.
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