Innovative growers: A view from the top — from mckinsey.com by Matt Banholzer, Rebecca Doherty, Alex Morris, and Scott Schwaitzberg
McKinsey research shows that a focus on aspiration, activation, and execution can help companies out-innovate and outgrow peers.
To find out, we identified and analyzed about 650 of the largest public companies that achieved profitable growth relative to their industry between 2016 and 2021 while also excelling in the essential capabilities associated with innovation.3 Some of these companies outgrew their peers, others were more innovative than competitors, but 53 companies managed to do both. The 50-plus “innovative growers,” as we call them, are a diverse group, spread across four continents and ten industries. They include renowned brands with a trillion-dollar market capitalization as well as smaller companies that are just starting to make a name for themselves, some as young as three years old (see sidebar, “Where do innovative growers come from?”).
For all their diversity, these companies consistently excel in both growth and innovation—and they share a number of best practices that other companies can learn from.
Do innovative growers perform better than others?
In a word, yes.
From DSC:
I’m adding higher ed to the categories of this posting, as we need to establish more CULTURES of innovation out there. But this is not easy to do, as those of us who have tried to swim upstream know.
Also see:
- The eight essentials of innovation — from mckinsey.com by