The halls of government contracting (GOVCON) companies hum with ambition. Organic growth is the holy grail – a coveted buzzword in boardrooms and a key metric investors scrutinize. Yet, the reality is stark: despite organic growth often being their top strategic priority- many companies stagnate, unable to propel themselves to the next level without M&A activity. What’s holding them back? It’s not about technical prowess, nor simply a crowded marketplace. The roadblocks to sustained growth lie within the very core of these organizations.

It begins by understanding the importance of nurturing a culture where every team member is empowered to be an agent of growth, armed with the skills and incentives to gather, share, and leverage customer intelligence effectively.

Let’s explore some internal challenges that cause GOVCON organizations to struggle to achieve their desired organic growth goals.

Disconnect Between Corporate Growth Objectives & Individual Growth Acountability

At the heart of this challenge lies a stark reality: a disconnect between organizational objectives and the roles played by individual teams and contributors. In an environment where not everyone comprehends their pivotal part in fostering growth, where relationship-building and intelligence-gathering skills are undervalued, and where accountability for growth in non-revenue-generating roles is a blind spot, the potential for organic expansion remains untapped.

To address this, create a “Growth Playbook.” This document should clearly outline your organization’s growth goals and how each team/individual role contributes. This fosters a shared understanding and empowers employees to see how their role contributes to the bigger growth picture.

Insufficient emphasis and accountability for developing Client Relationships

Another significant obstacle is insufficient emphasis or accountability for building winning client relationships. While technical expertise is undoubtedly essential, many companies prioritize it at the expense of nurturing trusted relationships with government decision-makers. GovTribe astutely observes that government contractors frequently overlook the significance of cultivating trust and rapport with their agency counterparts.

Furthermore, companies undervalue the investment required to build robust client relationships. Many companies perceive the process as time-consuming with no immediate returns, leading them to neglect investing in quality relationships. Consequently, when the need arises, they lack high-quality relationships, making gaining access to customers or acquiring high-quality intelligence challenging.

Additionally, there’s a common misconception about what constitutes a good relationship. Merely having an acquaintance-like connection where casual conversations flow easily doesn’t suffice. A winning relationship entails a deeper understanding and commitment where the customer feels understood and supported.

The Government Contracting Institute underscores the necessity for companies to hold teams responsible for customer-centric approaches, recognizing that trust and loyalty are pivotal for sustainable growth. Establishing connections with decision-makers can be particularly daunting, given the substantial role personal relationships play in securing government contracts, necessitating extensive networking efforts that can be time-intensive.

To address this, implement a “Client Touchpoint Program”: Designate specific individuals across teams (not just sales) to be responsible for maintaining regular engagement with identified clients.

Limited Training in Critical “Growth” Skills

Compounding these challenges is the limited training in customer engagement development and people skills professionals need for success. While highly skilled in their technical domains, formal training in BD, customer engagement, emotional intelligence, and how to develop relationships with government clients is frequently lacking. As Forbes highlights, “Investing in people-skill training across the organization yields greater returns than focusing solely on technical upskilling for new contract opportunities.”

To address this challenge, invest in “Growth Skills” Training: The Hi-Q Group programs provide training programs focused on customer engagement, emotional intelligence, and building relationships with government clients. Equip your team with the skills to connect effectively.

Siloed Departments and Lack of a Collaborative Growth Mindset

Another fundamental disconnect arises from the siloed nature of departments and the absence of a collaborative mindset conducive to growth. BD, capture, operations, and program management teams often function in isolation, leading to disjointed strategies and missed chances. McKinsey & Company stresses the importance of dismantling these silos, highlighting that collaboration among BD, capture, and operations staff is vital for organic growth, as each team harbors valuable insights essential for winning strategies and solutions.

Additionally, poor internal communication and knowledge sharing compound the difficulties in achieving organic growth. Crucial customer intelligence frequently fails to reach those who need it most, not due to ill intent but because team members may not fully grasp its significance or know who should receive it.

To address these challenges, organizations must instill accountability for growth within their teams and standardize processes and terminology across departments to break down perceived or actual barriers. Cross-Functional team meetings enable BD, capture, operations, etc., to explore opportunities, exchange intelligence, and formulate cohesive account or capture strategies. This fosters improved communication and ensures alignment in the pursuit of growth.

Challenges of Integrating Disparate Cultures After Mergers & Acquisitions

Finally, integrating disparate cultures after mergers and acquisitions (M&As) presents a formidable hurdle. These transactions often lead to a mix of processes, playbooks, and company cultures that can clash and hinder a unified growth strategy. Bain & Company aptly observes, “Successful organic growth after M&A requires intentional effort to align teams, create a shared vision, and establish consistent standards across the new, larger organization.”

To integrate new organizations, create a dedicated team responsible for aligning cultures, processes, and playbooks post-merger. This proactive approach streamlines integration and minimizes disruption to growth strategies.

The Path to Exponential Growth

In the quest for exponential growth, government contracting firms must confront these hurdles head-on, aligning every facet of their organization to solidify market positions, deliver long-term value to clients and stakeholders, and establish a leading presence in the market. The successful firm of tomorrow won’t merely rely on individual talent but will thrive as a cohesive ecosystem where every employee functions as a growth driver and intelligence node attuned to client needs.

This transformative shift demands investment in both technology and people. Training in relationship building and effective communication must complement technical upskilling and establish a collaborative, growth-oriented culture where every employee feels empowered as a “growth agent.” For investors, this translates into higher valuations and smoother exit strategies, recognizing that a company with embedded growth mechanisms is inherently more desirable than one reliant on fragile heroics.

In the relentless pursuit of growth, organizations must embrace the necessary mindset shifts, team dynamics, and cultural transformations to unlock the full potential of organic expansion. Otherwise, they risk being left behind in no man’s land!

Talk of the benefit and desire for organic growth surround us – isn’t it time to put the structures and training in place to propel your organizatio