BCG’s 2016 Global Challengers report is out and the short excerpt in the link below identifies the ‘five under-the-hood success factors’ that were common to previous Challengers that have graduated to become Global Leaders.
Some of the key pull out quotes…
- “Many former global challengers [that are no longer on the list] also articulated a compelling vision. But they failed to create a culture that unified the company and amplified individual effort and achievement.”
- “The operating models of global leaders are built to go global and to be adaptive. They are not modified versions of the model designed for the company’s home market.”
- “They make smart local acquisitions and develop local partnerships to fill in the gaps in their coverage, product portfolio, or distribution networks.”
- “One invested heavily in innovation, especially localized R&D. … The other company remained true to its command-and-control bureaucratic structure, which led to sluggish decision making and a lack of local adaptation. Its innovation strategy was reactive, responding to requests from customers, rather than forward looking. [Two similar companies, one that has become a leader, one with falling revenues.]”
Interesting how important the intersection of vision and culture is to success. Further reinforces for me how important it is to have a winning view of the future backed up by an adaptable plan that creates clarity for multi-level decision making.