Out of about 2,500 companies studied by BCG, only a small fraction can manage growth and profitability during both the good and hard times. These companies termed the 2% club are leaders at business innovation but are also ruthlessly efficient at the same time. Their experimentation does not imply any loss of business. Three key examples stand out for these 2% companies. Spanish fashion retailer Zara for example taps into evolving fashion trends at jet speed and designs accordingly. Amazon maintains its position in this club through a startup mentality where it is constantly able to innovate by studying use patterns. Toyota keeps itself in this club through its lean production principles. The 2 percenters excel due to their explorative stance rather than any exploitation aimed. The latter have a short-term and internal focus, with production and efficiency the hallmarks. For the former, it is agility, empowerment and a growth-oriented long-term, external focus. They share some traits beginning with a clear balance between exploitation and exploration. The have an “outside-in” focus. The embrace the disruptions around. They possess a model for renewal each time things fail.

Source:https://www.bcg.com/en-us/publications/2018/2-percent-company.aspx?linkId=48400612

Uploaded Date:13 June 2018