HBR On Strategy

To Grow Profitably, Take It Slow

Feb 26, 2025

Gary Pisano, a Harvard Business School professor specializing in strategy and sustainable practices, discusses the pitfalls of the 'growth at all costs' mentality prevalent in the tech industry. He emphasizes the need for companies to prioritize sustainable growth strategies over rapid expansion, using examples like Peloton to showcase the consequences of overextension. Pisano advocates for aligning growth ambitions with core values and operational capabilities, highlighting the importance of talent development in fostering long-term profitability.

30:10

Episode guests

Gary Pisano

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Episode notes

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Quick takeaways

Leaders must redefine growth strategies by evaluating the rate, direction, and method of growth while considering their internal capabilities.

Emphasizing sustainable growth over rapid expansion helps organizations avoid operational pitfalls and maintains long-term profitability despite market fluctuations.

Deep dives

The Obsession with Rapid Growth

Many companies have an ingrained obsession with rapid growth, spurred by investor expectations and market dynamics. This drive often leads organizations to pursue aggressive growth targets without considering their actual capacity to meet such demands. As a result, a significant number of businesses find themselves chronically under-resourced and over-invested, akin to an individual who cannot keep up with the demands of a growing houseplant collection. The emphasis on growth must shift towards a more sustainable and strategic approach, considering factors such as market demand, internal capabilities, and the long-term viability of growth goals.

Intro

5min

Navigating Growth: The Balance Between Ambition and Sustainability

6min

Sustainable Growth Strategies

9min

Sustainable Growth Through Talent Development

7min

Credible Growth: Balancing Ambition and Realism

5min

Many companies, especially in the tech world, have come to embrace the idea of growth at all costs. But according to research from Gary Pisano, professor at Harvard Business School, most firms fail to consistently increase revenues and profits over the long term, adjusting for inflation.

In this episode, Pisano explains why it’s important for leaders to think more strategically about not just the rate of growth they want to achieve but the direction they want to grow in and their method for doing so. Trying to grow too fast can be the downfall of many organizations. He shares examples of companies that have fallen into this trap, as well as those getting the balance right.

Pisano wrote the HBR article “How Fast Should Your Company Really Grow?“

Key episode topics include: Growth strategy, strategy, competitive advantage, profitability, sustainable business practices

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

· Listen to the full HBR IdeaCast episode: Rethinking Growth at All Costs

· Find more episodes of HBR IdeaCast

· Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org

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HBR On Strategy

To Grow Profitably, Take It Slow

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Obsession with Rapid Growth

Adjusting Growth Expectations

Lessons from Successful Growth Strategies

The Importance of Capabilities Over Ambition

Remember Everything You Learn from Podcasts