Dr. Ayo Adepoju is currently the Group Chief Financial Officer of Ecobank, a pan-African bank.
Have you ever heard the phrase “there’s more than one way to crack an egg” or “all roads lead to Rome”? In business and finance, these proverbs remind us that while a team may share the same goals, strategies differ widely and the chosen path can make or break value creation.
Today, capital is more selective than ever. In an era of economic uncertainty and tight liquidity, the providers of capital (shareholders, lenders and investors) are laser-focused on returns. As finance professionals, we understand opportunity cost well: Every dollar invested in your business is one not invested elsewhere. There are always competing alternatives.
So, the question is: How do businesses retain the confidence of capital providers and deliver sustainable value? Two dominant schools of thought emerge. One emphasizes growth, while the other leans toward efficiency. These approaches aren’t necessarily mutually exclusive, but they often compete for leadership focus and strategic capital.
Growth: The External Expansion Play
The growth mindset is fueled by the belief that expanding the business such as growing revenue, assets and market share will eventually translate into stronger profitability and shareholder value. This approach prioritizes scale, reach and speed. It manifests in new store openings, market entries, acquisitions and rapid customer acquisition.
Companies that pursue aggressive growth believe that, over time, economies of scale, brand dominance and revenue momentum will smooth out inefficiencies. In fast-growing sectors or emerging markets, this strategy can be highly effective. But growth for its own sake can be dangerous, especially when strategic alignment or operational readiness is lacking.
Efficiency: The Internal Optimization Lens
On the flip side, an efficiency-driven strategy focuses inward. It asks: How do we do more with less? It challenges the business to optimize resources, streamline operations, reduce waste and enhance productivity. It examines organizational structure, cost-to-income ratios, workforce deployment and capital allocation.
Efficiency seeks precision over expansion. But a hyper-focus on efficiency can also stunt innovation or limit the company’s ability to seize market opportunities. It’s like driving a car where speed and safety are both important but difficult to optimize simultaneously. Often, companies shift between these mindsets in cycles: growth in one phase, consolidation in another.
The Case For ‘Efficient Growth’
Here’s the challenge and the opportunity: Is it possible to pursue both? I believe yes, and I call this principle “efficient growth.” This mindset ensures that every step forward is deliberate, well-calibrated and value-adding. It combines the boldness of growth with the discipline of efficiency.
To embed this principle, business leaders must ask two fundamental questions whenever growth is on the table:
Why are we growing?
Not all growth is good growth. Before launching a new branch, acquiring a portfolio or entering a new geography, ask:
• Does this opportunity align with our core strategy?
• Will it strengthen or dilute our value proposition?
• Are we pursuing long-term value or chasing short-term optics?
• Could we achieve the same goal more efficiently?
Numerous studies show that over half of acquisitions fail to deliver expected results. Often, this is because the “why” wasn’t clearly established. Growth must reinforce strategy, not distract from it.
How are we growing?
The “how” is just as important as the “why.” Reckless or opportunistic growth can drain resources, distract management and damage reputation. Leaders must establish guardrails to ensure they pursue growth with structure, discipline and purpose.
Five Principles Of Efficient Growth
1. Intentionality
Opportunistic growth is rarely sustainable. Be deliberate: Build a framework that defines what types of growth the organization will pursue and what it will not. A well-defined growth strategy provides clarity and direction, so define the destination before choosing the mode of transport.
2. Ownership
Growth initiatives must have clear accountability. Assign sponsors, set measurable outcomes, and hold teams responsible for delivery. Avoid “orphaned projects”—initiatives with no clear owner or champion. Organizations must build a culture where results are expected, tracked and evaluated. If it’s not measured, it’s not managed.
3. Adaptability
Be willing to pivot. If a strategy isn’t working, don’t double down; course-correct. Some of the world’s most innovative companies are known for quickly abandoning failed experiments and reallocating capital. There’s no shame in changing direction; only in failing to learn.
4. Long-Termism
Beware of growth that only looks good in the short term. Short bursts of revenue can flatter results but may not create lasting value, so make decisions with a long horizon in mind. Growth must be sustainable, and expansion must contribute to a durable competitive advantage.
5. Uniqueness
Don’t grow by copying the competition. If your growth strategy is easily replicable, you’ve already lost your edge. Create value in a way that is uniquely yours. Competitive advantage lies in differentiation, not imitation.
Remember to stay disciplined.
In the early years of my organization’s journey, our strategy firmly focused on expansion. Within the first three decades, it had successfully established a presence in over 30 countries; a clear demonstration of an aggressive, inorganic growth strategy aimed at rapidly building scale.
But in the past 10 years, the organization has shifted gears, adopting a consolidation strategy focused on deepening value creation within its existing footprint. This second phase is characterized by organic growth, operational efficiency and maximizing returns from existing assets.
In my experience, this evolution is common. The early stages of a company’s life cycle are often driven by ambition for scale and market presence, while the later stages tend to prioritize consolidation, optimization and long-term value delivery. Most companies first build scale and then leverage that scale to drive efficiency and sustainable performance.
There’s absolutely nothing wrong with having a growth mindset, but it must never evolve into a “growth-at-all-cost” mentality. Capital providers are watching—not just where you grow, but why and how you grow.
Efficient growth is not a buzzword, it’s a discipline. It demands clarity of purpose, rigor in execution and courage to say no to flashy but empty opportunities. Ultimately, the most successful businesses grow intentionally, execute efficiently and never lose sight of the value they promise to create.
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