"A typical company grew at a measly 2.8 percent per year during the ten years preceding COVID-19, and only one in eight recorded growth rates of more than 10 percent per year."
This quote is from a McKinsey & Company study of 5,000 companies growth performance over the past 15 years.
Makes me wonder how many companies out there have a goal of double digit growth and are not going to realize it. The typical 2.8% is a long way from 10%.
Here is the list from the article on the 10 rules of growth. More details on each one in the article:
1) Put competitive advantage first. Start with a winning, scalable formula.
2) Make the trend your friend. Prioritize profitable, fast-growing markets.
3) Don’t be a laggard. It’s not enough to go with the flow—you need to outgrow your peers.
4) Turbocharge your core. Focus on growth in your core industry—you can’t win without it.
5) Look beyond the core. Nurture growth in adjacent business areas.
6) Grow where you know. Focus on growing where you have an ownership advantage.
7) Be a local hero. Commit to winning on the home front.
8) Go global if you can beat local. Expand internationally if you have a transferable advantage.
9) Acquire programmatically. Combine healthy organic growth with serial acquisitions.
10) It’s OK to shrink to grow. Ruthlessly prune your portfolio if you need to.
How many of these does your company excel at? Any that you know would help you grow if you did them?
https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-ten-rules-of-growth
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