Companies have three strategies for growing their business: investing, creating and performing. While no one size fits all, we have come to a conclusion that there is no one-size-fits-all approach. A diversified approach is more common at larger companies than smaller ones. It is also reported more often in developed markets than emerging markets, where reliance on the creating strategy is most common. The impulse to create makes good sense, given the current challenges to faster growth that executives identify.
To succeed, companies must master a handful of core skills. In all three paths to growth, the most successful companies develop a strong brand and the right mind-sets and organizational culture. For companies pursuing an investing strategy, resource allocation is also one of their table-stakes capabilities. And “creators” who follow a performance strategy say that developing products and services is one of their strongest capabilities. Sales and pricing are important to “performers” as well.