Leaders of large companies face a tough challenge: how do you grow your business in fiercely competitive and maturing markets? The sheer size of your organization can induce inertia and stifle innovation. What's more, you run up against a basic numbers problem: the bigger you are, the harder it is to drive the next quantum of growth.
The Granularity of Growth sets out to show executives how they can uncover pockets of opportunity even in the most crowded markets. It argues that many widely held beliefs about growth - 'China is where the action is,' 'Pharmaceuticals is a high-growth industry' are oversimplified, unhelpful, and often downright misleading. In reality, so-called mature industries are likely to contain sectors that are growing rapidly, while so-called growth industries frequently harbor segments that are barely growing at all. So executives looking for meaningful growth opportunities should shun what the authors call the tyranny of the average view. Instead, they should adopt a much finer, more granular perspective on market segments, their needs, and the capabilities required to satisfy them.
This new approach to growth requires executives to dig down more deeply within their businesses and organizations, something that many of them have been unwilling or unable to do in the past. The difficulty they face is finding a way to make strategic choices at a more granular level without losing sight of the big picture or drowning in a sea of complexity.
The Granularity of Growth shows how to do just that. Using fact-based analysis, it presents powerful insights into sustaining profitable growth as well as practical suggestions derived from hands-on experience. It will be an invaluable resource for any executive or entrepreneur involved in company growth and performance, as well as a rich source of provocative ideas for business school teachers and students.
PATRICK VIGUERIE is a director in McKinsey & Company's Atlanta office and leads its strategy practice in the Americas. His work focuses on helping companies develop and implement strategies for renewal and growth. He has served companies in a wide range of industries, and has published several articles on corporate strategy. He holds an AB from Dartmouth College and an MBA from Harvard Business School.
SVEN SMIT is a director in McKinsey & Company's Amsterdam office and co-leads its initiatives on growth. He has served companies in a range of industries including telecommunications, high tech, and media, and has worked in Europe, the US, Africa, and Asia. He holds a degree in mechanical engineering from Delft University of Technology and an MBA from INSEAD.
MEHRDAD BAGHAI is managing director of Alchemy Growth Partners in Sydney. He is a former partner in McKinsey & Company's Sydney and Toronto offices and was co-leader of its then global growth practice. He holds a BSE from Princeton University, an MPP from the Kennedy School of Government, and a JD from Harvard Law School. He is co-author of the international bestseller The Alchemy of Growth.
