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The characteristics of high growth companies.
Organic Growth
Research confirms that high-growth, high-profit companies are doing very unique and different things compared with their slower growth peers to grow from within
Examples of Participating Companies
DHL
FedEx
General Mills
Humana
P&G Reebok Texas Instruments United Airlines Xerox
IBM
ING
Lockheed Martin Mattel
The Growth Wanabees
175 Companies from all sectors
95% say organic growth is critical to success
90% say they are doing a lot to create growth
The Seventeen Growth Champions
Growth Champions do certain things to a much greater extent then others
Their financial performance is significantly stronger on revenue, NOI and cash flow
0
25
50
75
100
125
2000-2001 2001-2002 2002-2003 2003-2004
GrowthChampions
OtherCompanies
Identifying Growth Champions
Growth champions versus other companies on % change in annual revenue
Growth Champions versus Other Companies
% that say practice is deployed in their organisations
0
25
50
75
100
Clarity ongrowthsources
Understoodprofit
models
Focus onfew
initiatives
Culture ofexecution
GrowthChampions
OtherCompanies
Strategy Culture
Growth Champions versus Other Companies
% that say practice is deployed in their organisations
0
25
50
75
100
Translatecustomer
insights intoactions
Disciplinedexecution at
all levels
Buildingleaders to
growcompany
Alignmenton actionsto support
strategy
GrowthChampions
OtherCompanies
Work People
Growth Champions versus Other Companies
% that say practice is deployed in their organisations
0
25
50
75
100
Effectivetrade-off
decisions
Strongmetrics &feedback
loops
GrowthChampions
OtherCompanies
Formal Organization
The High Growth Practices Be clear on sources of growth
Focus on a few initiatives
Understand how you make money from them
Have a culture of superb execution
Continuously translate customer insight into action
Build leaders who can grow the company
Ferociously align actions with strategy
Build strong metrics and feedback loops
People•Build leaders who can grow the business•Sustain leadership alignment
People•Build leaders who can grow the business•Sustain leadership alignment
Work •Translate customer insight into business offerings•Execute growth plans with discipline
Work •Translate customer insight into business offerings•Execute growth plans with discipline
Informal organisation
•Promote excellence in execution
Informal organisation
•Promote excellence in execution
These Practices are Congruent with one another and mutually reinforcing Formal
Organisation•Make effective trade off decisions•Strong metrics and feedback
Formal Organisation•Make effective trade off decisions•Strong metrics and feedback
