The Importance of Economic Profit in Innovation

Today’s guest discovered that over 10 years, just 1 in 12 companies managed to jump from the middle tier of corporate performance—where 60% of companies reside, making very little economic profit—to the top quintile, where 90% of global economic profit is made. This movement does not happen by magic—it depends on your company’s current position, the trends it faces, and the big moves you make to give it the strongest chance of vaulting over the competition. This is not another strategy framework.

Instead, today’s book shows, through empirical analysis and the experiences of dozens of companies that have successfully made multiple big moves, that you have to overcome incrementalism and corporate inertia to improve performance dramatically.

We welcome the Chairman of the McKinsey Global Institute and Author of “Strategy Beyond the Hockey Stick”, Sven Smit.