A
What happened
As companies mature, they often face stagnation, a common phase in the corporate life cycle. However, recent research has shown that stagnation does not have to be a permanent state. A global study of 848 companies that experienced five years of below-industry revenue growth identified 99 firms that successfully achieved breakout growth. These companies managed to increase their sales at least twice as fast as their peers for five consecutive years, followed by maintaining above-industry growth for an additional five years. This finding is significant as it provides a framework for other organizations looking to overcome stagnation and reignite their growth potential.
★
Key insights
-
1
Stagnation is common: Many companies face stagnation as they mature, but it is not an unavoidable fate.
-
2
Breakout growth defined: Breakout growth is characterized by sales growth at least twice that of peers for five years.
-
3
Successful companies identified: 99 companies were identified that overcame stagnation to achieve sustained growth.
Takeaways
The research underscores that with the right strategies, companies can break free from stagnation and achieve significant growth, providing valuable lessons for corporate leaders.