Why is corporate growth so difficult to achieve?

Master the ten rules of growth ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Alexandra Mondalek   Associate Editor, New York Growth kit In the news • Resilience starts now. A recent CEO survey indicates that 98% of executives expect a global recession to come in the next several months. There's less consensus, however, about how long a downturn might last and how severe it might be. Seemingly contradictory economic signals—such as increased consumer spending in spite of high inflation—also make predicting the future more difficult than usual. Given the ambiguity, executives are adopting a range of measures, including closing offices, to shore up business resiliency. [Fortune] • Recession proof? Warehouses are a bright spot in the logistics business—and the broader economy—despite some industry leaders warning of economic headwinds. While rents for warehouses soar, they remain, at 6%, only a fraction of a company's supply chain costs. Meanwhile, the cost of transporting goods makes up roughly half of such expenses. The big-box boom that's expanding warehouse demand can be polarizing, though: some claim it is further damaging the environment, while others say that new warehouse jobs are a boon for local economies. [Economist] A typical company grew at a measly 2.8% per year during the ten years preceding the COVID-19 pandemic. On McKinsey.com • The 'growth code.' A study of 5,000 of the world's largest public companies over the past 15 years reveals that creating a business that has healthy, sustainable growth is difficult to achieve. From 2009 to 2019, only one in eight of those organizations grew more than 10% per year. To help companies buck these trends, McKinsey partners Chris Bradley and Rebecca Doherty and their coauthors outline ten rules for achieving growth. For example, periodic pruning of slow-growing areas of a business and reinvesting the proceeds into new areas can jump-start growth. • Grow where you know. A successful company must both excel in its core offering and create adjacent business areas that may complement the original product or service. Companies that grow into related industries in a way that makes their portfolios more similar earn an additional one or two percentage points of TSR every year. In a slowing global economy, with inflation and geopolitical uncertainty on the rise, see all ten rules for growth that business leaders should know. Learn the ten growth rules Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007