"As companies mature, their growth tends to slow. Research has shown that stagnation is a normal part of the corporate life cycle-but it is not destiny. Some firms defy the trend, achieving and sustaining what we call breakout growth: they increase their sales at least twice as fast as their peers for five years, and then sustain above-industry growth for five subsequent years."
"Research has shown that stagnation is a normal part of the corporate life cycle-but it is not destiny. Some firms defy the trend, achieving and sustaining what we call breakout growth: they increase their sales at least twice as fast as their peers for five years, and then sustain above-industry growth for five subsequent years. In a global study of 848 companies that experienced stagnation-defined as five years of below-industry revenue growth-we identified 99 companies that beat the odds over the subsequent 10 years."
Company growth typically slows with maturity, and stagnation commonly follows five years of below-industry revenue growth. Breakout growth occurs when firms increase sales at least twice as fast as peers for five years and then maintain above-industry growth for another five years. A global analysis of 848 companies that experienced five-year stagnation identified 99 firms that achieved breakout growth and sustained superior performance over the subsequent decade. These breakout firms beat industry trends and demonstrated that stagnation is reversible. The breakout metric requires both an initial sustained acceleration relative to peers and continued above-industry growth to confirm long-term outperformance.
Read at Harvard Business Review
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