This presentation of the IRG Growth Study starts from a single claim: traditional business growth formulas are lacking. It traces the question back to the marketing challenge set at Cannes in 2018.
The study contrasts the revenue growth of overperformers and underperformers, and organizes the answer into seven building blocks of growth. It was updated after COVID struck.
Key findings
- The evidence base is four streams: more than 750 qualitative interviews, more than 5,000 quantitative responses across markets and functions, AI analysis of more than 3,500 growth publications, and behavioral analysis of more than 3 million LinkedIn members.
- Reading the market is the widest single gap: 86 percent of overperformers assess and understand market developments against 36 percent of underperformers.
- Delivering ever-evolving experiences splits 81 percent against 32 percent, and competitive agility 68 percent against 16 percent.
- Growth ambition separates the groups by what they name first. Top-line revenue is near-universal, indexing at 98 and 93. Bottom-line is where underperformers index at 130 against 85, and impact on people is where overperformers index at 120 against 76.
- After COVID the study recorded a significant shift toward Humanized Growth, with 78 percent against 4 percent reporting more of it, and 65 percent against 11 percent reporting increased CMO influence on growth.
Markets, models, and experiences
The first block is abundant markets. Overperformers think about Nielsen, Amazon, and Kickstarter, and the worked example is Mars moving from pet food to pet care.
The second block is multiple models, where overperformers play chess and checkers simultaneously. Willingness to accept new business models splits 71 percent against 39 percent, illustrated by a move from supermarket shelves to cafes and subscription models.
The third block is evolving experiences. Overperformers embrace the always beautifully dissatisfied consumer and focus on eliminating friction.
Culture and organization
The fourth block is open culture, where overperformers rewrite the culture script. External connectivity, meaning an ecosystem of complementary partners, splits 67 percent against 39 percent, and diversity in strategic decision making 70 percent against 45 percent.
The culture description that overperformers name first is innovation, change, and entrepreneurship, indexing at 133.
The fifth block is the anticipative organization, which starts by switching perspective on organizational change. Effectively removing internal barriers splits 50 percent against 24 percent, and marketing and sales collaboration for e-commerce 68 percent against 37 percent.
Connection is measured too. Overperformers report 3.5 times more connections with other functions and 5.5 times more connections with senior leaders.
Whole-brained, and humanized
The sixth block is whole-brained. Overperformers unlock data with human insight, combining technology and human creativity. Attracting whole-brain talent splits 65 percent against 25 percent, and putting data and analytics at the core of strategic decisions 66 percent against 36 percent.
The seventh block is Humanized Growth, and the example given is Haidilao, described as obsessed with colleagues, consumers, and communities.
The new reality
The study frames a stakeholder shift. Before COVID the focus sat on customers and capital markets. At the outbreak it moved to colleagues and community. Humanized Growth is defined as all four together.
The equation given multiplies colleague value, customer value, community value, and capital market value, and sets short termism against it.
The external markers cited are the 2008 crisis, Laurence Fink of BlackRock in 2018 on companies having to show a positive contribution to society, and the 2019 US Business Roundtable. The conclusion drawn is that the future is uncertain and systems are being questioned.
The session ends by turning the framework on the audience. Participants are asked which building block should be prioritized right now, taking impact and feasibility into account.
Scope and limitations
The COVID figures come from a separate and later source than the main study. Both the shift to Humanized Growth and the rise in CMO influence are attributed to the IRG 2020 CMO Survey.
Source
This page summarises IRG Growth Study, by Institute for Real Growth, 2021-10-11.