Successful Companies Stay Ahead of the ‘S-Curve’
Recently, several business books have provided information on how companies reach greatness and achieve long-term success. But only few have explained how some companies successfully navigate the highs and lows of business, while others fail.
Jumping the S-Curve: How to Beat the Growth Cycle, Get on Top, and Stay There does just that and is co-authored by Paul Nunes and Tim Breene of Accenture, the global management consulting company.
They identify key differences in the companies that successfully make the transition from today’s successes to tomorrow’s lows. High performing companies tend to:
- Change top management while the business is still thriving.
- Look for market insights based on marketplace changes
- Refuse to scale up for scale’s sake and manage downside of scale at every turn.
Breene, strategy director for Accenture, says companies that failed were not illogical. They acted reasonably, but didn’t correct their response to market changes in time.
He also points out that high performing companies fix what doesn’t seem to be broken yet. The ride up the S-Curve is exhilarating, but they use it to prepare for their next act.
Incremental innovations are useful for extending an S-Curve and bringing in revenue to fund the next S. High performers are committed to breakthrough innovation. They turn their businesses into hothouses of talent, where they can give people room to grow. They glean insights from employees at all levels.
One reviewer recommends this book as an excellent training manual for leaders of both large and small companies.