growth champions ispim barcelona - june 2012
TRANSCRIPT
www.growthchampions.org
Sustained Innova.on Leadership ISPIM Barcelona | 19 June 2012
www.growthchampions.org
CONTEXT
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The Growth Champions research highlights how and why companies deliver successful organic growth
§ Sustained growth is a priority for most leaders today… § But of then they fail to achieve their ambi.ons § What is it about growth that is such a challenge? § Who are the companies that consistently deliver growth? § What makes them so special?
The research has three sec.ons: § The Growth Agenda – Why we need growth § The Growth Champions – The leaders in growth § The Growth Challenge – How to become a growth success
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This presenta.on covers the highlights from the research that are covered in more detail in the book
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THE GROWTH AGENDA
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Over the years, growth has become an impera.ve for countries and companies as they compete more
The Economists Perspec.ve § GDP | The Wealth of NaDons | Gross DomesDcs Happiness Na.onal Growth § Factor-‐driven economies § Efficiency-‐driven economies § InnovaDon-‐driven economies Company Growth § ExisDng market growth § Customer-‐driven market growth § InnovaDon-‐driven products and services growth
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New approaches have been adopted to improve both organic and M&A growth performance
The 1990s § Core competences § MulDfuncDonal teams § Stage gate processes § Consumer insight § Technology licensing
The 2000s § Open innovaDon § Smart M&A § Customer engagement § Strategic collaboraDon § Using foresight
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Today we can see a host of other drivers of change having wider impact across many different sectors
§ Small companies ac.ng bigger § Big companies geVng smaller
§ Emerging economy growth: India – China -‐ Global § Fragmen.ng markets § The impact of the financial crisis
§ The resource based view § Dynamic capabili.es § Dis.nc.ve competences
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THE GROWTH CHAMPIONS
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The analysis focuses on 10 pairs of companies that have delivered sustained high impact innova.on
Changing a sector for the be9er: Reinven=ng healthcare:
Design as a growth driver:
Making the most of insight:
Delivering a unique experience:
Using data to get close to customers:
Technology partnerships:
Growth with constrained resources:
Leapfrogging from India:
Bringing magic to the everyday:
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Most of the companies assessed have also delivered significant value crea.on over recent years
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PepsiCo has grown steadily but shi[ed its centre of gravity through its performance with purpose focus
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Nestle has created shared value and is the worlds leading nutri.on, health and wellness company
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Audi has created a unified premium global brand experience to become VW’s major profit center
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Samsung, the worlds most ver.cally integrated hardware company, creates value across categories
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Procter & Gamble makes big brands bigger with major consumer-‐focused global and local innova.on
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Recki` Benckiser delivers sector leading fast incremental margin enhancing product innova.on
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Starwood drives high loyalty by efficiently delivering consistent and memorable guest experiences
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Inditex, the worlds best retailer, has a culture of autonomy, fast decisions and con.nuous change
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Amazon is a massively efficient business delivering customer sa.sfac.on via proprietary technology
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Google excels at par.cipa.ve product development that supports incessant adjacent sector disrup.on
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Narayana Hrundayalaya leads in efficient surgery through integrated process and business innova.on
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Novo Nordisk has grown steadily by focusing on a total healthcare view for a clear global challenge
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Rolls-‐Royce manages deep, long-‐term research partnerships to support a growing 10yr order book
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ARM is dominant in smart-‐phone chip design by building communi.es based on technology sharing
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BASF leads from the front by simultaneously managing constant growth and improving impact
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Shell provides integrated solu.ons at large scale to sustain growth and move to lower carbon reserves
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Tata is India’s largest company and delivers change globally across mul.ple sectors simultaneously
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Bhar. Airtel’s extreme outsourcing business model enabled it to scale quickly and it is now the world #5
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LEGO, the world’s best toy company, has deep self belief in a unique ability to invent the future of play
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And Apple consistently delivers great products that people love but that they never knew they wanted
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THE GROWTH CHALLENGE
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Across all the Growth Champions several key common characteris.cs that drive success are clear
1. Inspira.onal Leadership § Founder CEO Drive § Catalyst of Change
2. Clarity of Ambi.on 3. Shared Values 4. Organiza.onal Confidence 5. Innova.on in the DNA
§ InnovaDon beyond the core § InnovaDon acquisiDons
§ Foresight and insight together § Return of the Conglomerate
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There are also a number future challenges that different companies around the world are facing
§ China § Accessing China § AccommodaDng China’s demand § Chinese Growth Champions
§ Open Network Collabora.on § Sustainability
§ Local supply § Resource use § Choice
§ The End of Intellectual Property? § The War for Talent?
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The Essen.al Implica.ons: The things that make the difference for successful and sustained growth
1. Clear Ambi.on
2. Dis.nc.ve Competence
3. Innova.on Priority
4. Unique Insight
5. Organiza.onal Confidence
6. Risk Appe.te
7. Innova.on Balance
8. Disrup.ve Innova.on
9. Aligned Investment
10. Ac.ng at Speed
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MORE INFORMATION
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The Growth Champions research was undertaken by 20 experts in innova.on and growth strategy
§ James Alexander § Peter Bryant § David Coates § Charlie Dawson § Cliff DenneX § Roger Dennis § Caroline Dewing § Mariah Hartman § Lucy Hooberman § Stephen Johnston
§ Tim Jones § Joss Langford § Dave McCormick § Lisa McDowell § SaDsh Rao § Tobias Rooney § Hamsini Shivkumar § Palie Smart § Neal Stone
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The Growth Agenda is a global network of leading exper.se that helps companies deliver growth
thegrowthagendaIdentifying emerging opportunities
The Growth Agenda 84 Brook Street London W1K 5EH www.growthagenda.com
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Sustained Innova.on Leadership ISPIM Barcelona | 20 June 2012