Reinvent your business
Decoding the formula for superior performance
This study aims to determine which management practices contribute most to sustained and superior corporate performance. Discover the winning three-rule formula that has allowed a series of Super Achievers to consistently outperform their respective markets over the last 10 years.
The three rules
Management is all about making difficult trade-offs in conditions that are always uncertain and often volatile. But high-performing companies approach these trade-offs and competing priorities with three simple rules in mind – sometimes consciously, sometimes unconsciously.
Rule # 1: Prioritise increasing value over reducing prices
Differentiation is a primary driver of superior long-term profitability. Research shows that organisations are more likely to succeed in the long run by offering superior non-price benefits – such as excellent functionality, convenient service, or a great experience – as opposed to minimally acceptable standards at lower prices. Highperforming organisations have systematically adopted a unique, differentiated, competitive position based on non-price dimensions that create superior value for their customers.
Rule # 2: Prioritise increasing revenue over reducing costs
While keeping an eye on operational efficiency, highperforming organisations continuously look for new ways to strengthen their top line. Indeed, in place of decreasing costs, organisations are more likely to achieve superior corporate performance by achieving higher revenue than their competitors, charging higher prices, or reaching out to more customers.
Rule # 3: Prioritise rapidly experimenting with new ideas over developing extensive business plans
As we navigate through a weak economy and systemic disruption, corporate leaders appear to be awaiting the arrival of a more robust recovery and a lessening of uncertainty before committing to large investments. While it is understandable, we have entered a new era characterised by low growth, rapid change and fundamental uncertainty. High-performing organisations understand the dynamics of today’s economy. They encourage employees to innovate and look for rapid ways to experiment with different ideas and models. And they expect and accept failure.