Double-Digit Growth: How Great Companies Achieve It--No Matter What

240 Pages·2004·9.12 MB·English

by  Michael Treacy

DOUBLE-DIGIT
GROWTH
How Great Companies Achieve It
No Matter What
MICHAEL TREACY
PORTFOLIO

PORTFOLIO
DOUBLE-DIGIT GROWTH
Michael Treacy is a world-renowned consultant, speaker, manage
ment thinker, and entrepreneur. He is currently the cofounder and
chiefstrategist ofGEN3 Partners, a firm based in Boston and St.
Petersburg, Russia, dedicated to creating science-based product
breakthroughsforawide rangeofclients.Prior to GEN3,Treacywas
a professor ofmanagement at MIT and founded and led a strategy
consultancy. Visithim atwww.michaeltreacy.com.

DOUBLE-DIGIT
GROWTH
How Great Companies Achieve It
No Matter What
MICHAEL TREACY
PORTFOLIO
PORTFOLIO
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Acknowledgments
Thecentralthesis ofthis book-thatanybusinesscan achieve steady
double-digitgrowth-isn't for everyone. After all, there isn't enough
growth in our economy for everycompany to achieve double-digit
growth. Butyourorganization can achieve it, even ifothers can't. If
you believe this, or want to believe this, then this book is written
for you.
When I began gatheringdatafor Double-DigitGrowthmore than
fiveyears ago, myhypothesiswas that the difference betweensteady
fast-growth businesses and also-rans would be found in their strat
egy.Growth companies must be making different decisions, placing
different bets, and building better strategies than everyone else, I
thought. As the research progressed, however, and more data were
gathered and analyzed, what became clear was that the majordiffer
encewas thathigh-growthfirms approachedthechallengeofgrowth
in a more sophisticated way.They built robust portfolios ofgrowth
initiatives that spread risk and improved the predictabilityofresults.
Further, theyemployedsophisticatedmanagement systems for plan
ning, controlling, and measuring growth that were different from
otherorganizations in the study. In slower or unsteadygrowthfirms,
growthmanagementwasamuchmorehaphazardprocess.
Steadydouble-digitgrowthwas theresultofacomprehensivesys-
vu
Vlll • ACKNOWLEDGMENTS
tern for managing growth asaportfolio ofopportunities and initia
tives.Any firm'can adoptthis systemfor managingagrowthportfo
lioand achievesteadydouble-digitgrowth. Thisbookdescribeshow.
Overthe years,I havehad the good fortune to knowscoresofex
ecutiveswho have generously hosted me at their companies for dis
cussion, debate, and discourseaboutthe challengesandopportunities
theywrestlewith on adaily basis.Some ofthose conversations stand
out as seminal learning opportunities, including those with Keith
Bailey;Marc Belton,Scott Bush,Michael Dell,Mike Eskew,J.P. Gar
nier, Michael Glenn, Joe Grano, Clay Jones, Jerry Karabelas, Bob
Kistinger,John Leggate, SteveMaritz, FrankMcKone,Joe Nacchio,
Jim Orr, Howard Pien, Ron Sargent, Rick Scott, Naomi Seligman,
BillStavropoulos, Tom Sternberg, David Stern, Jim Swartz, BobTo
bin, andLaurieTucker.From eachofthesepeopleItookawaysome
thingthatfounditswayinto this book.
Three executiveswith whom I haveworked deserve specialmen
tion. CharlieFotehasbeengenerouswithhistime and allowedmeto
studyhiscompany; FirstDataCorporation, in greatdetail. Charlieis
acompleteexecutive-strategicallyinsightful, operationallyengaged,
unfailinglyinspirational,andboundlesslyenergetic. Istandin aweof
hiscapacities.
John Weber ranks among the very best executiveswhom I have
met. Hehasaremarkable abilityto reduce growthand profitissuesto
theirsimplest andclearestterms and motivateamanagementteam to
exceedhishigh expectationsforperformance.
It has been almost ten years since I last worked with Gerry
Schwartz ofOnex Corporation, but I've not forgotten the lessons I
learnedobserving aworld-classinvestor inaction. Gerrycontinuesto
guide hisfirmto evergreater heights.
Ihavehadtheverygood fortunetospendlong hours discussingall
mannerofgrowth and govemanceissueswithseveralcolleagueswhile
this bookwas in development. Disque Deane isa good friend who