We apply the concept of granularity to the banking sector. A mckinsey global survey executives are most positive about the outcomes of strategy formulation for their companies business units when they work at companies that use a collaborative approach. How to identify the sources of growth and drive enduring company performance book online at best prices in india on. Authors mehrdad baghai, stephen coley and david white, who are mckinsey consultants or alumni, explain that growth can transform an ordinary business into an exciting, vibrant environment where employees feel a sense of purpose. Demographic changes, with peak employment approaching in many economies, is set to place a drag on future growth. As mckinsey s growth service line leader in asia, he has also ensured a more global orientation to our work. Specifically, the report aims to explore and address the following key questions.
It is increasingly clear to us that granularity and economies of scale canindeed. Part of the explanation for the difference in performance is that scale increases an orga. In order to achieve this goal, you need to think through the growth challenges your organization faces and follow a detailed approach that will allow you to uncover, understand, and capture potential growth opportunities. Mar 11, 2019 from the mckinsey growth pyramid, seven opportunities for growth can occur that could lift a company to a higher level. According to mckinsey global institute this can be offset by increasing the annual productivity growth by 80% over for the next five decades. The alchemy of growth download ebook pdf, epub, tuebl, mobi. Organizational health in healthcare how to drive and sustain. These include operational skills, privileged assets, growth skills and special relationships gupta, gupta and krishnaswami, 20. The granularity of medicaid mco growth 3 reached a cagr of 19%, and the companies increased total market share. How to identify the sources of growth and drive enduring company performance patrick viguerie, sven smit, mehrdad baghai 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. To find out, we tested the extent to which industry growth rates correlate with the growth rates of companies at five levels of market granularity, which we call g0 to g4.
Seven ways of achieving business growth, are summarized below. This model is similar in some respects to the wellestablished ansoff model. Whereas technology was traditionally confined largely to operations and execution, its digital expression now informs all aspects of business, from. Organizational health in healthcare how to drive and. One of their most surprising conclusions is that increased marketshare is seldom a driver of growth. Strategic analysis through the general electricmckinsey. While many companies stick to just one or two proven plans for how they are going to continue to get bigger, that choice may wind up limiting them in what they can accomplish into the future. A finegrained view of the sources of growth open interactive popup the authors of the granularity of growth explain why the best strategies begin with a precise understanding of market and product opportunities. Growth in business today is like alchemy, as business leaders try to turn everyday metals into gold.
Jan 02, 2012 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. After reading it, you understand the core of this strategy theory what is the mckinsey growth pyramid. About the authors richard dobbs, james manyika, and jonathan woetzel are directors of the mckinsey global institute, where jaana remes is a partner. The granularity of growth shows, with typical mckinsey rigor, that where you compete is even more important than. Click download or read online button to get the alchemy of growth book now. He is the coauthor of the bestselling book granularity of growth. Innovating in the digital era introduction in a business climate driven by powerful digital forces, disruption, and rapidfire innovation, every company is now a technology company. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. One common growth strategies is the mckinsey growth pyramid, which has similarities the wellestablished ansoff growth model, but deviates by looking at strategies of business growth using four distinct pillars.
The granularity of growth free summary by patrick viguerie et al. Over the past 20 years, the world economy has grown by roughly 7 percent a year. He leads mckinsey western europe and, before that, led mckinsey s strategy practice. In addition, he has led the writing of the granularity of growth. Introduction it is well known that the traditional transactional marketing has been replaced by the relational marketing cf. 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. Our 2007 book, the granularity of growth, made the case, and our latest research which. He leads mckinsey western europe and, before that, led mckinseys strategy practice. Mehrdad baghai, stephen coley and david white, partners at mckinsey and company, developed the seven degrees of freedom for growth model and published it in their 2000 book, the alchemy of growth. The granularity of growth mehrdad baghai, sven smit and patrick viguerie may 2007 read the article growth and innovation mckinsey special collection 3. I selected the ones which as less than 10 years old. Pdf the granularity of growth download full pdf book. The countries that comprise the g8 have been experiencing slow economic growth. 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.
The promise of granularity theory in simplifying challenges. If, like many executives, you take an average view of markets, the answers. According to the research granularity of growth carried out by mckinsey, total. But what about the environmental impact of sustained high economic growth. Organizational health in healthcare how to drive and sustain high levels of performance over time. This article explains the mckinsey growth pyramid in a practical way. Mckinsey global institute from to demographic dividend driving growth high growth but low volume in emerging economies aging and the productivity imperative high absolute growth in emerging economy cities factor inputs policy 1 demand 2 4 technology 3 stability 5 decreasing global cost increasing scarcity of talent.
Asia, a companion volume that explores the particular opportunities and challenges of growth in this most dynamic and fastchanging region. The granularity of growth, with new analyses and descriptions of several companies experiences adopting more granular approaches to growth. It will also argue that a finegrained knowledge of the drivers of the companys past and present growth, and of how these drivers perform relative to competitors, is a useful basis for developing growth strategies. Growth spurt in a recently released research report from mckinsey global institute. Confidential the granularity of growth need for dynamics in strategy helsinki university finland june 5th, 2008 this report is solely for the use of client personnel. The granularity of growth available for download and read online in other formats. Unlike previous books based solely on anecdotal evidence, the granularity of growth derives from the authors threeyear, indepth, analysis of four hundred of the worlds largest companies. Taking a cleansheet approach allowed management to make tough choices and free up resources for three. Almost half of the 100 largest companies on the stock exchange that. Download citation the granularity of growth a large companys topline. Patrick viguerie is a director in mckinseys atlanta office, and.
This model can be compared to the product market matrix of igor. While growth is a top priority for companies of all sizes, it can be extremely difficult to create and maintainespecially in todays competitive business. General electricmckinsey matrix, fashion marketing, luxury brands, business strengths, industry attractiveness, productportfolio analysis, competitive marketing 1. Mckinsey s growth decomposition tool helps companies apply the granularity of growth approach by breaking down their revenue growth among three sources. Or growing concern in the developed world about stagnating median incomes and widening inequality. Highproductivity tradable segments of services cannot absorb as much labor since they are typically skillintensive fire, business services low productivity nontradable services cannot act as growth poles since they cannot expand without turning their terms of trade against themselves continued expansion in one segment relies on expansion on others.
Patrick viguerie is a director in mckinseys atlanta office and leads the firms. The granularity of growth 43 growth, as this article will explain. Feb 23, 2018 sven smit is a senior partner in amsterdam. Mckinseys growth strategy aka fourth arrow for japan i. 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. American organisational consulting agency mckinsey has developed quite a few strategies throughout the years, among which is the mckinsey growth pyramid.
Whats more, corporate executives hold a consistently rosier view than business unit executives do. Download this issue for free from zinio mckinsey on the web as the us economy begins to. The granularity of growth by patrick viguerie overdrive. The extraordinary economic expansion of the past 50 years was clearly a success in terms of gdp. Mckinsey, a university of chicago professor, opened a consulting office in. Since 2005, mckinsey has maintained a database containing performance information on the portfolios of more than 700 global public companies.
This article is excerpted from the mckinsey global institute report global growth. The authors objective is to help leaders make strategic decisions on a granular level without increasing complexity providing a stepbystep. A new approach to changni g your growth trajectory ni a digita wl ordl growth budli s value. While growth is a top priority for companies of all sizes, it can be extremely difficult to create and maintainespecially in todays competitive business environment. Granular growth decomposition ggd is our analytical technique for breaking down companies revenue growth into three sources.
However, it looks at growth strategy from a slightly different perspective. In contrast, aggregate growth for the smaller mcos that yearthose not in the top 15was just 6% cagr. Mckinseys seven degrees of freedom for growth from. Pdf the granularity of growth download full pdf book download. These include operational skills, privileged assets, growth skills and special relationships. Many of these are from conferences, or governmental nonprofit organizations clients who have chosen to make them available online. Mehrdad baghai is coauthor of the alchemy of growth and managing director of alchemy. This wall mural becomes the workspace on which participants brainstorm, using postits. Guiding our efforts is the fundamenta l belief that sustainable economic growth and national prosperity are strongly intertwined. Blog posts on consultingrelated skills, tools, frameworks. A finegrained view of the sources of growth mckinsey.
The mckinsey model argues that businesses should develop their growth strategies based on. Practical insights for building the enduring enterprise. This is a stepwise process, which explains the name pyramid. Apr 06, 2015 the problem is that as mckinsey descends from the macroeconomic heavens to the temporal realm of japanese corporations, and, moreover, claims to discover within this realm the ills that plague. Sven smit the granularity of growth the mckinsey quarterly patrick viguerie. The granularity of growth, with new analyses and descriptions of several companies experiences adopting more. Below you can find the seven ways of achieving a growth strategy for companies. Pdf the alchemy of growth download full pdf book download. Unlike previous books based solely on anecdotal evidence. Mckinsey growth pyramid growth strategies explained toolshero. They created the model to address the constraints that many leaders subconsciously apply.
There are a number of different ways in which an organization can choose to grow. Download pdf the granularity of growth book full free. Mckinsey growth pyramid growth strategies explained. The basic rules of the game for creating and capturing economic. Charting icelands growth path we seek to assess icelands current economic performance and chart a way forward. This site is like a library, use search box in the widget to get ebook that you want.
The problem is that as mckinsey descends from the macroeconomic heavens to the temporal realm of japanese corporations, and, moreover, claims to discover within this realm the ills that plague. Designing for granularity in data crowdsourcing find, read. The tool produces easytoread analyses by value cell within the businessat the right level of granularity for each organization. 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. Pdf on jan 1, 2020, ryan murphy and others published capturing the forest or the trees.