Mastering three strategies of organic growth

Organic growth is key to companies’ futures. According to survey results, the best firms follow more than one path to achieve it and also are better at developing the right capabilities to support it.

There’s no single formula for delivering organic growth. In fact, the results from a new McKinsey Global Survey on the topic suggest that the companies that see the most growth follow diverse paths.1

That insight has significant implications for a company’s health and performance. Organic growth could not be more important to companies’ survival. A look at the share-price performance of 550 US and European companies over 15 years revealed that, for all levels of revenue growth, companies with more organic growth generated higher shareholder returns than those whose growth relied more heavily on acquisitions.