McKinsey&Company
Five mindsets shared by growth leaders
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Strong headwinds. Businesses around the world are facing strong headwinds: the energy crisis, record-high inflation, rising interest rates, and the return of lockdowns in Asia. Some UK companies are already bracing for a possible recession. As consumers tighten their belts, businesses that depend on discretionary spending (such as travel and leisure) may be especially vulnerable. Households cutting back on discretionary spending could also hurt retailers in the US, where some big-box stores have already warned of falling profits. [FT] |
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US stocks slide. Wall Street wrapped up its worst first half of the year since 1970, with US stocks losing trillions of dollars in value. One major US stock market index has fallen nearly 20% since early 2022. But things could get bumpier still. In a recession, corporate profits usually decline by a quarter, and even a mild downturn could see earnings fall by 15%. If interest rates keep rising, the market could be facing a blow to earnings and higher interest rates later this year. [Bloomberg] |
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Beating the odds. Many leaders aspire to grow their businesses, but for many, that goal may seem difficult to achieve. Only one in eight companies grew their revenues more than 10% in the decade between 2010 and 2019, a McKinsey analysis revealed. Moreover, about 25% of companies don’t grow at all. But delivering sustained, profitable growth—even in a downturn—is possible. In fact, many high-growth companies, including Airbnb, Burger King, Hyatt Hotels, and Microsoft, were founded during an economic downturn.
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Five mindsets. C-suite leaders who outperform their peers often share common mindsets, exemplified by statements such as “I have a growth story I tell all the time,” “I am willing to fail,” and “I favor timely action over perfection.” In fact, leaders who adopt at least three of five key growth mindsets are more than twice as likely to profitably outgrow their peers, finds McKinsey senior partner Michael Birshan and colleagues. See our blueprint for growth, including examples of companies that have successfully expanded beyond their core businesses.
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| — Edited by Belinda Yu |
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