High-growth companies aim to transform the world, not just make profits. They prioritize enhancing their customers' lives, a strategy that has proven successful for market leaders. Surprisingly, growth is best achieved indirectly, by focusing on customer improvement. Ideals are the key driver of growth. To harness an ideal for growth, there are five essential steps. A decade-long study of over 50,000 global brands reveals that companies centering their operations on improving lives significantly outperform the market. The paradox is that prioritizing ethical practices is beneficial for business. Companies that understand this dominate their sectors, innovate new categories, and maximize long-term profits. - Jim Stengel
A decade-long study of 50,000 global brands revealed that companies consistently outpacing others in growth share common traits. The top performers, categorized as the "Top-50," not only outperformed the Standard & Poor’s 500 index by 400 percent in investment returns over the same period but also demonstrated that their success was the result of effective, long-term strategies rather than mere chance. These companies are unified by their commitment to transformative brand ideals, aiming to profoundly improve their customers' lives in ways relevant to their industries. For instance, Accenture's mission is to accelerate ideas to help people achieve their dreams, while Amazon.com promotes freedom of choice, exploration, and discovery. Coca-Cola aspires to inspire moments of happiness, and Discovery Communications satisfies curiosity about the world and universe. FedEx delivers peace of mind in everyday interactions, HP fosters human innovation and progress, and IBM is dedicated to building a smarter planet. Jack Daniel’s celebrates personal authenticity, independence, and integrity, MasterCard simplifies and adds flexibility to commerce, Red Bull energizes the world, Samsung inspires imagination in a world of limitless possibilities, and Starbucks creates connections for self-discovery and inspiration. The leaders of these Top-50 companies are described as business artists, who are technically astute yet view their companies through an artistic lens, focusing on making a significant positive difference in people’s lives through brand ideals that resonate on an emotional level. These ideals are centered around five fields of fundamental human values: eliciting joy, enabling connection, inspiring exploration, evoking pride, and impacting society. Furthermore, these business artists excel at five basic activities: identifying a resonant brand ideal, building a culture aligned with that ideal, communicating their mission honestly and compellingly, structuring their business to deliver a customer experience that embodies the ideal, and regularly measuring their adherence to that ideal. They also add three other competencies: hiring passionate individuals who bring the ideal to life, uniting them with a shared culture, and strategically determining their competitive advantages. By doing so, these companies attract customers they aspire to serve and pursue market opportunities that allow them to meet their financial goals.
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