Growth is imperative. It is the principal pillar of total shareholder return (TSR). Growth is also difficult, especially for companies in mature markets and sectors. Absent a megatrend or big wave to ride, most companies have relatively few options—none of which is easy to execute. One is innovation that leads to new products or services. Another is new products and services that expand into adjacent lines of business or new markets. A third is M&A. One more is simply outthinking and outexecuting the competition.
Suppose that there was a type of sophisticated compass that could direct a company toward the most promising routes to growth. Suppose the same compass could guide all of a company’s growth efforts, from innovation to expansion, from screening acquisition candidates to executing in the marketplace. Suppose the compass could be applied in any segment or industry where consumers make choices. Identifying—and acting on—the highest-growth-potential options could become a lot less difficult and a lot more precise.
The Boston Consulting Group has developed such a compass and proven its effectiveness, providing newfound focus, accelerated growth, and increased share. We call it demand-centric growth (DCG), and we have put it to work on more than 100 projects across multiple sectors since 2009. (See “Demand-Centric Growth: How to Grow by Finding Out What Really Drives Consumer Choice,” a September 2015 BCG article based on the book Rocket: Eight Lessons to Secure Infinite Growth.)