Large acquisition
Divestitures
–2%
–1%
4%
7%
17
56
17
10
23
25
29
24
Large deal
Inconsistent growers
Shrink to grow
Consistent growers
Median xTSR²
Share of outperformers among four main growth archetypes,¹ %
About 30 percent of recent growth outperformers have shrunk to grow.
Others
Recent growth outperformers
McKinsey & Company
Source: McKinsey Growth code research, corporate performance analytics, “The ten rules of growth,” McKinsey, August 12, 2022
Excess TSR calculated as the company’s annual shareholder returns less the median return in its primary industry.
²
We analyzed the revenue growth of the largest 3,000 companies in 2019 from 2010 to 2021. Each company classified into one of four categories: “Large deal” are those with a single year where revenues grew by 50%; “Shrink to grow” are not ‘large deal’, had one or two years with net divestitures (shrunk revenue by more than 5%), and grew in at least all but two of the other years. “Consistent growers” were not “large deal” or “shrink to grow”, and that grew in 7 or more years of the analysis period; all others were “Inconsistent growers.”
¹
