DOCSLIB.ORG

Aligning HR to the CEO Growth Agenda

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Aligning HR to the CEO Growth Agenda Aligning HR to the CEO Growth Agenda Compliments of Accelare Accelare is the leading provider of operating model design and management tools on the Microsoft Share- point platform. Accelare’s WhatFirst toolset provides the fastest, lowest cost and most effective environment for developing and managing a modern process or capabil- ity based operating model and using it to manage the performance of the organization. Visit us on the web at www.accelare.com or contact Richard Lynch at 781.961.1760 to learn more about the role capabilities play in core business fitness and growth. Aligning HR to the CEO Growth Agenda Donald L. Laurie & Richard Lynch hroughout much of the 1990s and early of the bottom line, has shifted to the top line. 2000s, CEOs were rewarded for cost Covering the views of 658 CEOs from more than reduction and cost containment. To 40 countries, the 2006 Conference Board’s Sixth compete in the global arena, Boards Annual Survey1 found that: Tdemanded dramatic improvement in efficiencies. In the United States, the top future challenges Companies such as General Electric, Motorola, will be how to sustain and generate steady and Allied Signal fueled the trend by reporting top-line growth. Profitable growth and product 10 times or higher ROIs from their Six Sigma innovation were also high up on the list. programs. With a clear focus on the bottom line CEOs based in Europe are most concerned and tantalizing ROIs, companies invested heavily with speed, flexibility, and adaptability to to get lean, outsource nonstrategic work, improve change, followed by profit growth and quality, and introduce better products. sustained and steady top-line growth. The new CEO agenda, while not losing sight HUMAN RESOURCE PLANNING 30.4 25 Spurring company growth has become a team. This is generally described as a financial shortfall, but the root cause is a gap in the enterprise’s capabilities and processes major CEO concern in Mexico and South to identify and exploit new opportunities beyond the reach of the America. core businesses. For example, in a $10B multi-business chemical company, its core businesses were able to generate 5 percent growth CEOs of Asian companies are more concerned though current know-how, but the board of directors and CEO with stimulating innovation, acquiring top talent, desired 10 percent growth in order to increase stock price and market capitalization. The size and reach of generating new businesses to and other people issues. Half of CEOs in close the $500M revenue gap made it the prime responsibility of the CEO and Executive Team to create new families of products Asia report that inspiring innovation is their and services. greatest concern. Almost 60 percent of respondents to the HRPS/i4cp survey list the primary objective for their organization as organic growth HR demonstrated in the earlier period that it (28.2% say this will come through new product and service platforms). Yet most companies believe and act as if this will be can be a strategic player in efficiency initiatives achieved by doing better at and more of the same things. Oyster by sourcing work and talent for better leverage, International research has found, however, that good strategy, understanding of markets and technologies, and analytical support outsourcing routine work, and moving some talent will not insure that the growth gap will be closed. Instead, the costs from fixed to variable. For HR to remain a most significant elements of success are found in the answers to the following questions: strategic partner in the new, growth-driven future, 1. Is there an enterprise growth gap? it must answer the call to support and systemize 2. Is the leadership team unified around growth goals and the path to them? innovations that achieve the growth goals now 3. Is the organization designed to achieve the growth that has been topping the corporate agenda. identified? 4. Is the source of growth clear? Many companies have a significant enterprise growth gap: the difference between the sum of the forecasted business units’ growth goals and the overall enterprise target. This next phase requires significant retooling, according to the 5. Can the innovation process deliver new businesses that will HRPS/i4cp 2007 survey “HR’s Role in the CEO Growth Agenda.” achieve the growth goals? This retooling and reinvention must come most dramatically in the areas of leadership development and organization design.2 The HR will be aligned closely to the CEO growth agenda only when survey highlighted several issues of concern to most HR leaders, it is actively involved in driving the organization to “yes” answers including: for these questions. This will require HR to adapt by adding the development of leaders who can identify and execute new ideas in Helping leaders to frame the growth challenge for the organization. new spaces and the realignment of the organization systems and Developing new learning programs that lead to clarity of roles structures for growth to its strategic competencies. The rest of our and responsibilities in managing growth and new executive article details how HR can make these required and rather dramatic team behaviors; and changes so it becomes a full partner in creating new, substantial Designing and staffing the growth-related organization. growth. The Growth Gap Closing the Growth Gap Growth, in many ways, is its own reward: Growth attracts talent, After studying 24 high growth companies such as Procter & creates the capital to grow faster, and can transform the market Gamble, UPS, and Medtronic, Oyster International identified two valuation of a company. Yet many companies have a significant major success factors in closing the growth gap.3 First, these com- enterprise growth gap: the difference between the sum of the fore- panies were successful in creating New Growth Platforms (NGP): casted business units’ growth goals and the overall enterprise target. material new families of products and services typically outside the In other words, it is the difference between what the core businesses reach of the current businesses. Opportunities lay within domains can deliver and the expectations of the CEO and top management at the intersection of technology, trends, and customer dynamics. 26 HUMAN RESOURCE PLANNING 30.4 EXHIBIT 1 Sample New Growth Platforms Company Description Results UPS Domain: Service and repair $1 Billion business unit in 2005 NGP: Service Parts Logistics UPS’ capabilities in providing the physical connection between buyer and seller almost anywhere in the world, when juxtaposed with PC customers demanding same-day repair, led UPS to enter the computer repair business (with the acquisition of missing capabilities of such PCB repair) Apple Domain: Portable music Apple split into separate iPod and Macintosh NGP: iPod divisions in 2004 just three years after the iPod Known for stylish, elegant design, great user interface, cool was introduced. software, and intimate knowledge of its youthful customer base, Apple’s portable media players account for Apple projected these core capabilities into the portable music 71.5 percent of the market in 2007. domain, reshaped the digital music business with iTunes, and is now extending into the consumer electronics market. Analog Devices Domains: Automotive safety, musician’s studio The majority of 2005 revenue from micro- NGP: Accelerometer/ iMEMS machined products was derived from accel- A company with strong capabilities in making small devices erometers used by automotive manufacturers (micro-machinery) and analog and digital signal processing, in airbag applications (about 8% of total rev- Analog projected these capabilities into new domains such as enue). However, revenue from consumer and automotive (motion devices for airbags in automobiles opened up industrial customers is increasing as Analog by new regulations and customer demand for safety) and music develops products using this platform for appli- (“Hot Hand,” a device for a guitarist to manipulate sound effects cations in new end markets. without the need for pedals). Explorations into these domains are guided by the company’s demands skilled operators who are aligned around strategy and are core capabilities. Unlike new products, NGPs are the kernels to accountable for a share of market growth and cost containment. create new strategic opportunities that leverage company size and Their horizons are the next quarter and next budget cycle. position. (See Exhibit 1 for examples of NGPs.) Key attributes of good operators include: Second, the companies exhibited a common set of characteristics in innovation, leadership, and organization design to sustain the 1. A good knowledge of current markets and key customers; flow of NGPs. These characteristics include: 2. A highly analytical nature; 3. Ability to run lean operations; 1. A credible chief growth officer is in charge of a new unit; 4. Experience in product enhancements and product cost reduc- 2. A recognition that the team is more important than the idea; tions; and 3. NGP units are independent units and with strong interdependencies 5. Ability to expand into new geographical areas. to the core businesses; and 4. The process for screening, selecting, and building NGPs is disci- NGPs, on the other hand, demand a different breed of leader—a plined, systematic, and repeatable. business builder. Leaders here must be constructively dissatisfied; they turn things on their sides and see how things could work in a Herein lies the opportunity for HR to be a player in the company whole different way. Their horizon for building NGPs is the next growth agenda and not just sit on the sidelines. HR can help design three to four years. They rely on insight and intuition, not just the and build a more agile organization capable of identifying, designing, numbers. They see things others do not see and make connections and iterating a pipeline of NGPs. In other words, HR can help create others cannot make.
Load more

Recommended publications
  • Unlocking the Value of the Platform Economy
    Unlocking the value of the platform economy Mastering the good, the bad and the ugly November 2018 Foreword Everyone and everything is connected these days. This development has given rise to a new type of organization: digital platform organizations (hereafter simply: platforms) that provide digital infrastructures where individuals and organizations can find each other and coordinate their activities on a very large scale. These platforms add convenience, transparency and trust to all kinds of markets and ecosystems. And in the process, often creates a lot of new consumer welfare. The platform model is rapidly finding its way into a broader range of sectors, up the value chain into B2B markets and is increasingly driven by large incumbent companies. In the emerging platform economy, at first glance most platforms are “just an online store” (Amazon, Bol.com), “just a smart taxi service” (Uber) or “just a way to earn something on the side” (Deliveroo, Temper). In reality, such platforms operate as both orchestrators and regulators of multi-sided markets, where they set and enforce their own rules on how this market should function. There’s good and bad news in this: most rules help to make the market (much) more efficient, but many simultaneously increase the power of the platform over its users. And as platforms move to increasingly important aspects of our lives (from entertainment and shopping to our jobs, housing, healthcare, finances, mobility), their broader impact on the economy and society as a whole, as well as their broader future potential, are now becoming apparent. And while their negative impact on income security, antitrust, privacy and fake news is coming under intense public scrutiny, their positive effects such as their major contribution to consumer welfare seem to be going largely unnoticed.
    [Show full text]
  • Making Innovation Work, First Edition
    Praise for Making Innovation Work, First Edition “This is the book I wish I had read thirty years ago. Making Innovation Work is an important resource for leaders who are trying to improve innovation in their organizations. It’s crammed with examples and practical ideas that can trigger improvements in innovation, starting tomorrow!” —Lew Platt, Chairman of Boeing, former Chairman and CEO of HP, and former CEO of Kendall-Jackson Wine Estates “Davila, Epstein, and Shelton remind us that even if the end product is rocket science, the process need not be. To the contrary, tried-and-true practices of management, process, metrics, and incentives are all that it takes to let innovation happen consistently.” —Andrew Beebe, President, EnergyInnovations “Making Innovation Work is a fresh approach to systematically manag- ing innovation. It integrates the innovation management literature in a way that is insightful, creative, as well as pragmatic. Davila, Epstein, and Shelton have particularly fresh insights on learning, culture, leadership, and executing change. This book will be of great help to those managers leading innovation and change.” —Michael Tushman, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration, Graduate School of Business, Harvard Uni- versity, and author of Managing Strategic Innovation and Change and Winning through Innovation “This impressive book offers specific techniques for driving systematic, repeatable, and managed innovation at all levels in your company. It will help you build a balanced portfolio that integrates both incremental and radical innovations—so you can sustain growth indefinitely, instead of flaming out.” —Guerrino de Luca, President and CEO, Logitech “Making Innovation Work provides an excellent roadmap to innova- tion: its various facets, why each facet matters, and how they can be enhanced—separately and collectively—in any organization.
    [Show full text]
  • Creating Growth Platforms Working to Deliver Sustainable Long-Term Revenue Growth Realizing Value Series
    Creating growth platforms Working to deliver sustainable long-term revenue growth Realizing value series It is widely known organic growth is challenging, but well-rewarded. This is driven by one simple idea: organic growth is the best indicator of whether management has the necessary insight and judgment to make the best use of company resources. Growth platforms are a means to identify, prioritize and organize for growth. They are the potential business units or divisions of the future. Robert Browne Dr. Christoph Zinke KPMG in the UK KPMG in China Global Strategy Group Ronan Gilhawley Daniel Shaughnessy KPMG International KPMG in Australia KPMG in the US © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Creating growth platforms 2 The importance of organic growth... …But the difficulties faced by organizations in delivering it. For some companies, their culture is to aim high for but perhaps also to further their own reputation and growth (and risk missing) rather than low, but perhaps career. more realistically. We frequently hear executives declare they “want to grow faster than the market”, a recent There is another fundamental problem, however, in example being an executive at a global luxury company that many companies simply don’t have a framework or that set a target to double the size of their business in process for growth.
    [Show full text]
  • David Clough
    June 2020 DAVID R. CLOUGH [email protected] · +1 604 822 5413 · www.davidrclough.com · @David_Clough1 2053 Main Mall, Vancouver, BC Canada V6T 1Z2 ACADEMIC POSITIONS Sauder School of Business, University of British Columbia 2017 – Assistant Professor Organizational Behaviour and Human Resources Division Entrepreneurship & Innovation Group RESEARCH INTERESTS Technology strategy, organization theory, organizational learning, social networks, entrepreneurship EDUCATION INSEAD 2012 – 2017 PhD in Management (Entrepreneurship & Family Enterprise Area) Dissertation: “Coordination and Interorganizational Networks in Innovation Ecosystems” Committee: Philip Anderson (Chair), Jason Davis, Henrich Greve, Henning Piezunka The Wharton School, University of Pennsylvania Fall 2013 Visiting PhD Student King’s College, University of Cambridge 2005 – 2009 BA, MEng in Manufacturing Engineering RESEARCH Publications Clough, D. R., & Piezunka, H. (2020). Tie Dissolution in Market Networks: A Theory of Vicarious Performance Feedback. Administrative Science Quarterly, Forthcoming. Clough, D. R., Pan Fang, T., Vissa, B., & Wu, A. (2019). Turning Lead Into Gold: How do Entrepreneurs Mobilize Resources to Exploit Opportunities? Academy of Management Annals, 13(1): 240-271. Conditionally accepted papers “Platform Diffusion at Temporary Gatherings: Social Coordination and Ecosystem Emergence” Tommy Pan Fang, Andy Wu, and David R. Clough. Conditionally accepted at Strategic Management Journal. Refereed ‘best paper’ conference proceedings “Untangling the Behavioral and Relational Antecedents of Learning Traps in Inter-Organizational Ties” David R. Clough and Philipp Reineke. (2017). In Guclu Atinc (Ed.), Proceedings of the Seventy-seventh Annual Meeting of the Academy of Management. “From Chicken-or-Egg to Platform Ecosystem: Mobilizing Complementors by Creating Social Foci” Tommy Pan Fang, Andy Wu, and David R. Clough. (2019). In Guclu Atinc (Ed.), Proceedings of the Seventy- ninth Annual Meeting of the Academy of Management.
    [Show full text]
  • Recapturing the Perrigo Advantage
    Recapturing The Perrigo Advantage Investor Day May 9, 2019 This information is confidential and was prepared by ACME Corp.; it is not to be relied on by any 3rd party without ACME's prior written consent Forward Looking Statements Certain statements in this presentation are “forward-looking statements.” These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “forecast,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or the negative of those terms or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, including: the timing, amount and cost of any share repurchases; future impairment charges; the success of management transition; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources or larger market shares in certain product categories than the Company does; pricing pressures from customers and consumers; resolution of uncertain tax positions, including the Company’s appeal of the Notice of Assessment (the “NoA”) issued by the Irish tax authority and the Notice of Proposed Assessment (“NOPA”) issued by the U.S.
    [Show full text]
  • Increasing Investment in Priority Growth Platforms
    2018 Investor Day Mike Roman Chief Executive Officer November 15, 2018 Today’s meeting highlights • Our 3M Value Model positions us to win • Four strategic priorities delivering value for our customers and shareholders • Portfolio management … more to do • Transformation … enhancing customer experience • Innovation … accelerating priority growth platforms • People and culture … developing and advancing • Balanced and disciplined capital allocation • Announcing new 2019 – 2023 financial objectives; previewing 2019 outlook 15 November© 3M 2018. All Rights Reserved. 2 Agenda 2018 Investor Day | Nov 15, 2018 The 3M Value Model Priorities Financial objectives 15 November© 3M 2018. All Rights Reserved. 3 The 3M Value Model VVision i s i o n Strengths Technology Manufacturing Global Capabilities Brand Priorities Portfolio Transformation Innovation People and Culture VValues a l u e s 15 November© 3M 2018. All Rights Reserved. 4 Our vision Vision Strengths Priorities Values 15 November© 3M 2018. All Rights Reserved. 5 Our strengths: the power of 3M Customer Insights Fundamental Strengths Customer First Customer Inspired Innovation Unique and differentiated value End-user focused Technology Manufacturing Global Capabilities Brand Vision Strengths Priorities Values 15 November© 3M 2018. All Rights Reserved. 6 Our priorities Delivering on our commitments for growth, value, and returns Portfolio Transformation Innovation People & Culture Fully leveraging our 3M Activating our Realizing the full potential Developing our people and value model transformation advantages of our innovation model advancing our culture Vision Strengths Priorities Values 15 November© 3M 2018. All Rights Reserved. 7 Our values Leadership Behaviors Play to win Prioritize and execute Foster collaboration and teamwork Develop others and self Innovate • Inclusion Act with integrity and transparency • Diversity Code of Conduct: Be 3M • Sustainability Be good • Respect, encourage, challenge Be honest Be fair Be loyal Be accurate Be respectful Vision Strengths Priorities Values 15 November© 3M 2018.
    [Show full text]
  • 1 Overview of Study “The Biopharmaceutical Research And
    Overview of Study “The Biopharmaceutical Research and Development Enterprise: Growth Platforms for Economies Around the World” A new study by the Battelle Technology Partnership Practice examines the increasing efforts by other countries to grow their economies by focusing on the biopharmaceutical sector and related industries.1 As a research-intensive, knowledge-based industry, the biopharmaceutical sector supports high-wage jobs, generates exports, and is recognized by the U.S., and increasingly other countries, as an important contributor to economic growth and sustainability. While the U.S. has led the world in biopharmaceutical research and development (R&D) for the past three decades, an increasing number of countries are focusing on the biopharmaceutical sector and related industries in their economic development, innovation, and science and technology strategic plans. Battelle found that the U.S. is not improving on several key innovation indicators whereas other countries are seeing significant advances, suggesting that “the U.S. environment for innovation is showing signs of relative weakening compared with other nations in such areas as net output, exports, publications, and patents.” It should be noted however, that a favorable environment for innovation also requires a number of aspects not directly addressed in this report including strong intellectual property rights and enforcement; a well-funded, science‐based regulatory system; and healthcare payment and coverage polices that provide access to innovative therapies, among other factors. Key Findings: Battelle examined the policies and programs being implemented to promote innovation, with a focus on the biopharmaceutical and related sectors, in a mix of 18 developed and developing countries and the EU.
    [Show full text]
  • A New Way to Work with Data in Life Sciences
    BiopharmaTrend.com [email protected] A fresh viewpoint on drug discovery, pharma, and biotech [Interview] A New Way To Work With Data In Life Sciences Sept. 25, 2020 by Andrii Buvailo Founded by renowned database researcher, Turing Award laureate MIT Professor Michael Stonebraker, Paradigm4 is not just any data analytics company in the Life Sciences. The organization is built on the decades of pioneering research in database design and possesses unique technological know-how in scientific data management and scalable computation. The firm has recently launched its REVEAL™: Single Cell app to offer biopharmaceutical developers the ability to break through the data wrangling and programming challenges associated with the analysis of large-scale, single-cell datasets. Paradigm4’s Agile Science Platform, REVEAL™, transforms hypothesis generation and validation to advance drug discovery, biomarkers, and precision medicine, providing FAIR (Findable, Accessible, Interoperable, and Reusable) data access and elastically scalable analytics and machine learning to power discovery from population-scale to n-of-1. Below is my interview with Marilyn Matz, CEO and Co-founder at Paradigm4, and 2020 NACD Directorship 100™ honoree, and her colleague Dr. Zachary Pitluk, VP of Life Sciences and Health Care at Paradigm4. Andrii: How did Paradigm4 start? What was the key driver behind the founder’s ambition to delve into a complex area of scientific data analytics? page 1 of 7 BiopharmaTrend.com [email protected] A fresh viewpoint on drug discovery, pharma, and biotech Marilyn: Michael Stonebraker, a Turing Award Laureate who has been behind almost all major advances in databases for over 30 years, spent time listening to scientists talk about the limitations of current technology for scientific data management and scalable scientific computing.
    [Show full text]
  • Strategy and Profitability: Managing Profits in Inflation Economy Mohamed Jaffar Mohamed Sharaaz Walden University
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Walden University Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2016 Strategy and Profitability: Managing Profits in Inflation Economy Mohamed Jaffar Mohamed Sharaaz Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, and the Management Sciences and Quantitative Methods Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Mohamed Sharaaz has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Patricia Fusch, Committee Chairperson, Doctor of Business Administration Faculty Dr. Peter Anthony, Committee Member, Doctor of Business Administration Faculty Dr. Denise Land, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2016 Abstract Strategy and Profitability: Managing Profits in Inflation Economy by M.J.M.Sharaaz MBA, Postgraduate Institute of Management, University of Sri Jayewardenepura, 2013 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Abstract The inflation rate in Dubai, United Arab Emirates (UAE) rose to 5-year highs in 2014 and higher by 28% in the first half of 2015.
    [Show full text]
  • How Catalysts Ignite: the Economics of Platform-Based Start-Ups
    HOW CATALYSTS IGNITE: THE ECONOMICS OF PLATFORM-BASED START-UPS David S. Evans* Forthcoming, in Gawer, A. (ed) (2009), Platforms, Markets and Innovation, Cheltenham, UK and Northampton, MA, US: Edward Elgar. September 2008 * Executive Director, Jevons Institute, and Visiting Professor, University College London; Lecturer, University Chicago Law School. I have benefited from discussions with and comments from Howard Chang, Annabelle Gower, Andrei Hagiu, Richard Schmalensee, and Karen Webster. I would also like to thank Alina Marinova for exceptional research assistance. E-mail: [email protected] ABSTRACT Entrepreneurs who start multi-sided platforms must secure enough customers on both sides, and in the right proportions, to provide enough value to either group of customers and to achieve sustainable growth. In particular, these entrepreneurs must secure ―critical mass‖ to ignite the growth of their platforms; the failure to achieve ―critical mass‖ quickly results in the implosion of the platform. There are a number of strategies available to entrepreneurs to reach critical mass. For example, the ―zig- zag‖ strategy involves successive accretions of customers on both sides to build up the value to both. The relevant strategies depend in large part on whether the nature of the platform requires securing participation by both platform sides at launch (e.g. dating venues), whether it is possible to acquire one side before approaching the other side (e.g. search engines), and whether it is necessary to make pre- commitments to one side to induce them to make investments (e.g. video games). 2 I. INTRODUCTION Starting a business and getting it to the point where it is economically viable is the most difficult problem for all entrepreneurs.
    [Show full text]
  • A Steeper Ascent: Growth in the Testing, Inspection and Certification (TIC) Industry
    A steeper ascent Growth in the testing, inspection and certification (TIC) industry A steeper ascent 1 Growth at different speeds 2 Who said scaling is going to be easy? 3 An industry on a shopping spree 4 M&A still has a long way to go 5 What lies ahead — being a TIC player in a digitized world 6 How we can help 9 A steeper ascent Providers of testing, inspection and certification (TIC) services have been fortunate to see their playing field grow for many years now. But achieving growth appears to be increasingly challenging, as organic growth of the large and increasingly complex TIC players is slowing somewhat. Not surprisingly then, the pace of acquisitions in the TIC industry is notably high, mostly driven by the top 12 TIC players as well as by private equity-owned growth platforms. We take a look at how competition As growth becomes harder to achieve, it has evolved over the last years, which is even more important to make the right factors have been driving markets and decisions about what to focus on in the who performs best in an M&A-driven future and how to tackle the challenge environment. Interesting targets are still of adapting the proposition in a world of plentiful, few players benefit from M&A in rapidly evolving technology. We therefore terms of profitability, and some are more take a look at key technology trends focused on working to round out their relevant to the TIC industry. service portfolio. A steeper ascent Growth in the testing, inspection and certification (TIC) industry | 1 Growth at different speeds Top 12 working hard to sustain their pace For many years, TIC market growth appeared to be unshakable, and Top 12 organic vs.
    [Show full text]
  • Growth in Turbulent Times Future Confident Growth in Turbulent Times
    Growth in Turbulent Times Future confident Growth in Turbulent Times Contents Growing in turbulent times Growing in turbulent times 03 Using an adjacent growth strategy during Using an adjacent growth strategy during turbulent times 09 turbulent times Building a growth engine during Building a growth engine during turbulent times 15 turbulent times Creating a Creating a sustainably advantaged portfolio 18 sustainably advantaged portfolio Leveraging lazy balance sheets in turbulent times 22 Leveraging lazy balance sheets in turbulent times Accelerated growth in turbulent times 28 Accelerated growth in turbulent times Strategic sensing during turbulent times 32 Strategic sensing during Leading in turbulent times 35 turbulent times Leading Managing risk in turbulent times 40 in turbulent times Managing War gaming for business during turbulent times 44 risk in turbulent times Key contacts 47 War gaming for business during turbulent times 02 Growth in Turbulent Times Growing in turbulent times Author: Mike Vincent Growing in turbulent times Death and taxes apart, the only other certainty in the world is change. Using an Nothing has brought this into sharper focus than COVID-19. adjacent growth strategy during turbulent times Building a growth engine during The 20th century experienced regular periods of relative calm, followed The SARS-CoV-2 (COVID-19) pandemic has caused the largest global turbulent times by calamities – two world wars, the great depression, the cold war, recession in history, with more than a third of the global population and even the Spanish flu. This 21st century appears to be following the being placed in lockdown. Global stock markets experienced their Creating a same trajectory.
    [Show full text]