At the current churn rate, approximately 75% of companies listed on the S&P 500 today will be replaced in the next decade.1 The pace of change is accelerating. The future will be littered with underperforming companies that did not effectively evolve to meet it.
Growing both the top and bottom lines is more challenging than ever. For the past thirty years we have pursued three growth strategies; global distribution, effeciencies and acquisitions. The first two are running out of gas and the M&A market is both pricey and risky. That leaves us with organic growth from innovation as the best option for lead macro strategy in the years ahead.
The highlight of my week was speaking at an industrial client’s internal “Growth & Innovation Forum” in Allentown, PA. The event gathered hundreds of innovation professionals from within the company to talk about the opportunity to drive growth from innovation. Dozens of other people from around the world participated via live video link even though in some places it was the middle of the night.
Will our current portfolio deliver our organic growth goals?
It is not uncommon to hear CEOs talk publically and explicitly about growth goals. It is, however, a rarity for these same executives to be able to link those goals to specific innovation initiatives in any tangible way. Proclamations of organic growth expectations can leave those responsible for innovation scratching their heads and wondering which development portfolio the CEO is looking at when making these statements.