The Granularity of Growth E-Book

Patrick Viguerie

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 336

Veröffentlichungsjahr: 2011

Beschreibung

While growth is a top priority for companies of all sizes, it can be extremely difficult to create and maintain--especially in today's competitive business environment. The Granularity of Growth will put you in a better position to succeed as it reveals why growth is so important, what enables certain companies to grow so spectacularly, and how to ensure that growth comes from multiple sources as you take both a broad and a granular view of your markets.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Special thanks

Acknowledgements

Preface

The nature of the challenge

A definition of terms

Understanding growth better

How this book is organized

NOTES

Introduction

Perseverance among the growth giants

Decline among the performers

Resurgence among the challenged

Uncertainty among the unrewarded

Growth, survival, and value creation

Time to go?

NOTES

PART I - Your growth ambition

NOTE

Chapter 1 - A granular world

Why granularity matters

Levels of granularity

Handle megatrends with caution

NOTES

Chapter 2 - Understanding your company’s performance

Getting to the sources of growth

Peer comparisons

Growth for the average large company

Portfolio momentum: Thank your predecessor

M&A: More important than you think

Market share: Seldom a growth driver

Location, location, location

Tailwinds or headwinds?

NOTES

Chapter 3 - Firing on multiple cylinders

Defining cylinder firing

Exceptional performance

Great performance

Good performance

Poor performance

Firing on more cylinders over time

A six-cylinder engine?

NOTES

Chapter 4 - A granular company

Combining cylinders with segments

Understanding firing performance

The granularity of choice

NOTES

PART II - Your growth direction

Chapter 5 - Firing on Firing on momentum

How to fire on momentum

Climbing a growth staircase

Beating the odds in market entry

Using reference classes to test entry decisions

NOTES

Chapter 6 - Firing on M&A

Studying the studies

Leaders do more M&A than you realize

How growth companies use M&A

The building blocks of growth

Don’t forget divestment

Balancing acquisitions and divestments

Lessons from private-equity firms

NOTES

Chapter 7 - Firing on Firing on share gain

A tough task

Learning from the winners

Shaping your own destiny

Segment size matters (but not just in the way you think)

Short-term wins

NOTES

Chapter 8 - Mapping your growth direction

The growth map

Mapping your growth

NOTES

Chapter 9 - To move or not to move?

Who moves?

When does moving pay?

Don’t stop in a downturn

Advantage, not adjacency

NOTES

PART III - Your growth architecture

Chapter 10 - The architecture of growth

Scaling up

Scale and granularity

The art in architecture

Applying the architecture framework

NOTES

Chapter 11 - Looking in the mirror

Looking in the mirror

Common patterns in architecture

The Unilever story

NOTES

Chapter 12 - A blueprint for granularity

Finding the sweet spot

The impact of new technology

Granularity and the three cylinders

Designing your organization blueprint

Putting a blueprint into practice

NOTES

Chapter 13 - Building scale platforms

Rethinking scale

Building an insight engine

Building an M&A engine

Other scale platforms

NOTES

Chapter 14 - Cluster-based growth

Accounting for growth

Clusters elsewhere

NOTES

Conclusion: Choosing to lead growth

Appendix 1 - Growth and value

Appendix 2 - Two ways to grow, two ways to go

Bibliography

Index

Copyright © 2008 by Patrick Viguerie, Sven Smit, and Mehrdad Baghai. All rights reserved.

© McKinsey & Company, Inc. United States 2008. First published in the United Kingdom by Cyan/Marshall Cavendish.

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ISBN 978-0-470-27020-2

To Susie, Shaun, Alex, and Sam Viguerie Bibi and Veerle Smit and Jan Ferdel Smit, an ideas man Roya and Naysan Baghai

Special thanks

We owe a great deal of gratitude to our partner Angus Dawson, who for all intents and purposes has been the fourth author of this book. He has been instrumental in the development and refinement of our thinking, especially on the architecture for growth. As McKinsey’s growth service line leader in Asia, he has also ensured a more global orientation to our work. In addition, he has led the writing of The Granularity of Growth: Asia, a companion volume that explores the particular opportunities and challenges of growth in this most dynamic and fast-changing region.

We have also been lucky to have truly gifted team leaders who have superbly managed our many working teams. Carrie Thompson and Martijn Allessie were our first thought partners and the leaders who led our teams through the murkiest days of the research. Ralph Wiechers subsequently picked up the team leadership role and drove the advancement and refinement of our thinking brilliantly.

Quite simply, there would be no book without the four of them.

Acknowledgements

This book is the product of a collaboration among many people. Our clients, colleagues, friends, and families have all made major contributions to our thinking and we would like to recognize and thank them for their support.

First, and most important, we want to thank our clients who have encouraged us to develop our ideas. Achieving and sustaining growth in multi-billiondollar corporations is a serious leadership and management challenge. Our ideas have benefited enormously from our work with clients who have taken on this challenge.

We thank those who, as reviewers, braved early drafts of this book to give us feedback and encouragement. In particular, we appreciate the frank and constructive voices of Charles Conn, Costas Markides, Anita McGahan, David Redhill, and Phil Rosenzweig in helping us to reshape our thinking.

We acknowledge the support of our partners who have supported our multiyear research effort. Beyond funding, our colleagues have contributed enormously to the ideas we put forward on their behalf and to their application in real corporate environments. Without their intellectual challenges and the ability to test our ideas, no book would have been possible. We would also like to note the leadership of Ian Davis, Lenny Mendonca, Scott Beardsley, Gordon Orr, and Peter Bisson, who have been advocates and sponsors of our work inside and outside McKinsey.

While scores of other partners have contributed to McKinsey’s work on growth, we would like to mention specifically Claudio Feser, Will Garrett, Carlo Germano, Asmuss Komm, Robert Palter, Stefano Proverbio, Occo Roelofsen, and Stefano Visalli. We also acknowledge the original contributions made by our former partners Steve Coley and David White to our early thinking on growth.

Our teams conducted painstaking, detailed analysis and case research that not only formed the analytical basis for our idea development but also provided extraordinarily valuable documentation of case studies. At one time or another, all of the following made significant contributions to our work: Kevin Cheng, Abhijeet Dwivedi, Olga Hallax, Giovanni Iachello, Robert Mulcare, Carlos Ocampo, Amee Patel, Sejal Patel, Mary Rachide, Gajan Retnasaba, Namit Sharma, Christian Sønderstrup, Teun van der Kamp, and Robert Weston. We are also indebted to the hard work of the entire team at McKinsey Knowledge Center in India: Megha Agarwal, Ankit Ahuja, Ripsy Bakshi, Vineeta Chopra, Chintan Dhebar, Sumit Dora, Himanshu Jain, Amit Jeffrey, Dipty Joshi, Vipin Karnani, Rohit Malhotra, Amit Marwah, Devesh Mittal, Bhawna Prakash, Mudit Sahai, Abhishek Sharma, Amit H. Sharma, Ashish Sharma, Sidhartha Sharma, Richa Suri, and Sakshi Trikha.

We also want to make a special acknowledgement to Ivan Hutnik and Jill Willder who, through many tireless hours, helped us to synthesize our thinking and express our thoughts more clearly and succinctly. They have been an invaluable source of intellectual challenge, and, indeed, have played a real role in the refinement and articulation of our ideas.

Pom Somkabcharti and Martin Liu of Cyan Books have worked with us during this entire research and writing effort. Pom in particular has been an enduring source of encouragement, emotional support, creative magic, and hands-on work to drive our publishing effort. Both have believed in our project from the outset and been tireless advocates for its success. We are truly indebted to them. We would also like to thank Pamela van Giessen and her team at Wiley for all their hard work to make our North American edition a success.

And, of course, none of this would have been possible without the professional assistance of Nichole Brien, Marije Kamerling, Vicki Lunceford, and Emma Peachey who helped us through the many iterations of the manuscript. We are thankful for their professionalism and constant support.

Finally, we note the influence that McKinsey legend Marvin Bower has had on our thinking. We remember him best by a remark he made at a partners’ conference:

“For the future, my great ambition—and I’m assured it’s being carried out—is that we produce a firm that is going to continue indefinitely into the future. There aren’t many organizations of that sort.”

Preface

After a brief spell out of the management limelight, growth has once again taken center stage. Following the collapse of the internet bubble, it disappeared from view for a while as companies scrambled to rebalance their businesses by focusing on execution. But now it’s back, and with a vengeance.

Of course, growth never really went away as a management concern. Without growth, companies can’t hope to deliver the continuous increase in revenues and returns that shareholders are looking for. As CEOs are only too aware, such expectations aren’t easy to meet and involve much more than simply steering the performance of the business. The markets take competence and effective delivery for granted, and discount them; what they want to see is performance beyond the current trajectory. But where will this growth come from?

The nature of the challenge

The purpose of this book is to answer that question by exploring the particular challenges faced by large corporations in driving and sustaining growth.

The first of these is a basic numbers problem: the bigger you are, the harder it is to drive the next quantum of growth. Take the median Fortune Global 500 company with roughly US$25 billion in revenue. To sustain growth at just the rate of global GDP growth (say, roughly 6.2 percent), it needs to find about US$1.6 billion in incremental revenue every year. As Procter & Gamble’s CEO said recently, his company’s growth challenge is to add a business the size of its entire UK operation or a brand the size of Tide