We are able to measure vitality by using BCG’s proprietary methodology behind the Fortune Future 50-the result of a two-year research partnership between BCG and Fortune magazine. They must develop their capacity for growth and reinvention. Even when their positions seem comfortable, incumbents need to create a sense of urgency and preemptively address the requirements to sustained success. Many of today’s large incumbents are vulnerable, even if they have a solid track record of past performance.Īnd abrupt failures happen increasingly frequently-think Kodak or Blockbuster-in no small part because of the risk of digital disruption. Current performance is less and less predictive, and an overreliance on backward-looking metrics can be deceptive. In today’s rapidly changing environment-with elevated political, social, and technological uncertainty-what will make a company thrive tomorrow is different from what makes it succeed today. Yet in the long run, most value creation comes from top-line growth, which accounts for 74% of total shareholder return of S&P 500 top-quartile-performing companies over a ten-year period. In the short term, companies can create value by optimizing costs or assets or by building investors’ expectations. The challenge is straightforward: growth is critical for sustained value creation. VITALITY: A NECESSITY FOR LONG-TERM GROWTH
The drive to maintain vitality has organizational, financial, and cultural levers-all of which reinforce each other. How can legacy leaders remain vital-to preserve and develop their capacity for growth, risk taking, innovation, and long-term success? In creating a quantitative measure of corporate vitality and its underlying drivers, we hope to provide a working framework of what matters when managing the balance between delivering near-term execution and investing in the future. Nontraditional competitors, disruptive technologies, and new business models are making corporate reinvention a critical priority. But our research shows that as companies age and grow, incumbents increasingly focus on internal matters, have more difficulty freeing themselves from legacy businesses and approaches, and progressively shift their priorities toward running-rather than reinventing-the business. Leadership has its benefits-scale, knowledge, influence, and financial stability among them. “How do you keep the vitality of day one, even inside a large organization?” - Jeff Bezos “Vitality shows in not only the ability to persist but the ability to start over.” - F.
#BUSINESS THRIVE MEANING HOW TO#
How to by BCG: Turn Insights into Action.Technology, Media, and Telecommunications.
0 kommentar(er)
