Praise for Stretch!

"Stretch! is an important book. It talks about growth as the lever to profits. Filled with sound, practical advice, it takes the mystery out of how to achieve extraordinary growth. Whether you are a production manager, profit center, or a corporation, this is a must-read experience."

–Whitney MacMillan, Chairman Emeritus, Cargill, Incorporated

"We have learned how to raise productivity, but we know that we cannot shrink to greatness. Now we must learn how to meet our organic growth potential. For this long-distance Olympic challenge, Deans and Kroeger prescribe an effective fitness program to help companies stretch beyond their current limits."

–Hermut Kormann, CEO, Voith AG

"One of the numerous insights in this book is that CEOs admit that their companies are able to achieve just 50 percent of their growth potential. These CEOs need a model that will enable them to capture their potential for growth–even during economic downturns. Using a database of thousands of companies and insights from their extensive consulting experience, the authors meet this pressing need through a comprehensive four-stage model that is illustrated with interesting case studies."

–George Siedel, Williamson Family Professor of Business Administration

University of Michigan Business School

"The media and entertainment sector in North America has largely righted itself after intense industry consolidation activity. Stretch! provides a useful context for ‘what next?’–polish, swap to strengthen, or go big? We are entering a new era of strategic growth management."

–John M. Cassaday, President and CEO, Corus Entertainment Inc.

"Through numerous examples and case studies, Stretch! describes how a pattern of focus on core competencies, attention to operational detail, and an unwavering commitment supports the thesis that growth can be achieved whatever the external conditions might be. It is an enjoyable, commonsense approach to good management. An excellent companion to Winning the Merger Endgame."

–Bruce S. Chelberg, retired chairman and CEO, Whitman Corporation

"Stretch! is truly an ambitious and important work that fills a gap in current management philosophy; it is a call to arms for business leaders to focus on value-building growth. Deans and Kroeger resoundingly affirm the importance of developing a long-term strategy; their book provides a clear alternative to the deferred decision-making and tactical focus evident in many firms today. At the same time, Stretch! offers a practical road map to overcome barriers, guide growth efforts, and execute for sustained success."

–Clifford J. Porzenheim, Senior Vice President, GATX

Stretch! shows business leaders how to achieve sustained business growth even in the toughest economic times. A.T. Kearney surveyed some 29,000 global companies over fourteen years and studied more than eighty companies in depth, in order to determine how the best companies continue to grow in good times and bad. Based on this extensive research and on the best practices of the most successful companies, this book presents a practical, step-by-step plan for positive organic growth.

Stretch! offers a four-stage framework for growth, then outlines the precise steps for implementing each stage. Contrary to accepted wisdom, research shows that growth has little or nothing to do with industry maturity, geography, or business cycles. Strong and successful growth is possible in any industry, in any region, at any time–growth isn’t dependent on outside factors, but on the internal actions a company takes.

The book begins by describing the current predicament for companies that find their growth has flatlined, then uses intriguing case studies to illustrate the four stages of growth:

• Operations: dramatically improve internal processes such as product development, sourcing, quality, delivery, customer service, sales, and pricing
• Organization: find the organizational structure that best suits the company, determine opportunities for value chain reconfiguration, evaluate and adjust compensation, reward, and incentive programs
• Strategy: reinvent the core strategy, stretch brands, and extend lines, focusing on the value proposition offered to the customer
• Stretch: expand the business frontier, venture into new territory, break down barriers to create new products and reach new customers, markets, and geographic regions

Truly great companies find ways to grow no matter the current state of the economy or the business climate. They focus on innovation and calculated risk, continuously improving products and jumping into new opportunities to secure future sales. They understand that growth should be accomplished through a combination of mergers and acquisitions, product innovation, organizational efficiency, and new markets. Stretch! lets you follow the lead of the most consistently successful companies in the world with a proven, step-by-step plan for sustainable growth.

For more information go to stretchbook.atkearney.com.

Learn how to achieve sustained business growth even in the toughest economic times. Author A.T. Kearney surveyed some 29,000 global companies over fourteen years and studied more than eighty companies in depth, in order to determine how the best companies continue to grow in good times and bad. Based on this extensive research and on the best practices of the most successful companies, Stretch! presents a practical, step-by-step plan for positive organic growth.

GRAEME K. DEANS is a Vice President at A.T. Kearney, where he leads the company’s global strategy practice, and Chairman of A.T. Kearney Canada. He specializes in business and marketing strategy, organizational design and effectiveness, and corporate restructuring, and is also the author (with Fritz Kroeger) of Winning the Merger Endgame.

FRITZ KROEGER is a Vice President at A.T. Kearney and the author of nine books on restructuring, growth strategy, and merger integration, including The Value Growers.

Preface.

Acknowledgments.

Introduction.

Part I: The Growth Landscape.

Chapter 1:Mapping the Challenges and Hurdles to Growth.

The Growth Challenge: It’s More Than One Summit.

Many Popular Growth Concepts and Strategies Have Failed.

The Coca-Cola Challenge: Growth Hurdles at the Turn of the Century.

Can We Overcome the Growth Challenge?

Chapter 2:The Consolidation Game.

Learn by Example.

Chapter 3:Governments Can Help and Hinder Growth.

Industry Growth Rates Vary by Country.

Governments Promote Specific Target Industries.

Mixing Business and Politics on the Endgames Curve.

Heightened Levels of Protectionism.

A Brief World Tour.

Lessons Learned.

Part II: The Case for Growth.

Chapter 4:The Growth Objective.

Find the Right Path.

; Pulling All the Right Levers.

Chapter 5:Getting Ready to Grow.

Positive Aspects of Growth.

The Impact of Industry Consolidation.

The Growth Diagnostic.

Part III: The Stretch Growth Model.

Chapter 6:Introduction to the Stretch Growth Model.

A Tale of Two Strategies.

Decentralized and Unified.

Chapter 7:Operations: Removing Bottlenecks and Barriers.

Operations-Driven Growth at Wal-Mart.

1. Sourcing and Vendor Management.

2. Product and Service Quality.

3. New Product Development.

4. On-Time Delivery.

5. Superior Customer Service.

6. Sales Effectiveness.

7. Pricing Strategy and Execution.

Graco.

Chapter 8:Organization: Creating High-Performing Companies.

Goldman Sachs.

Eliminate Friction.

Break Down Growth Barriers.

Sara Lee.

Improve Decision-Making Processes.

Align Compensation and Growth.

HSBC Holdings.

Chapter 9:Strategy: Exploiting Strategic Levers.

Toyota.

What Industry Are You Really In?

What Is Your Customer Growth Strategy?

What Distribution Channels Fuel the Best Growth?

Which Countries Should You Compete In?

What Is the Best Product Portfolio?

Teleflex.

Where Do Mergers and Acquisitions Fit In?

Robert Mondavi.

Chapter 10:Stretch: Achieving Extraordinary Growth.

Nestlé.

Value Chain and Business Model.

Customer Base.

Service.

Partnership and Risk Sharing.

Distribution Channels.

Brands.

Convenience and Customization.

Geographic Reach.

Technology.

Johnson & Johnson.

Part IV: Execution and Conclusion.

Chapter 11:Organizing for Growth: Resourcing Implementation Considerations.

Gaining the Conviction for Growth.

Selecting the Right CEO for Growth.

Establishing a Growth Culture.

Organizing for Globalization and Geographic Expansion.

Chapter 12:Reengineering Your Business Processes for Growth.

Basic Enabling Processes.

Innovation: The Birth of New Products and Services.

Growth Portfolios.

Managing Merger and Acquisition Decisions.

Chapter 13:Future Challenges for Growth.

Reasons for Hope.

Growth Prospects for Major Regions.

Growth Predictions in Key Industries.

Stretch into the Future.

Appendix:Overview of Economic Value Added (EVA) and Other Value Frameworks.

Pricing Strategies.

Notes.

Index.