The New Blueprint for Corporate Performance

The rules of the game are changing. While growth in traditional markets has plateaued, new markets, including those created by technology disruption, are hot. Growth opportunities are expanding in areas related to the energy transition and low-emission technology as well as in gene therapy, the metaverse, and quantum computing. The basic drivers of lasting superior corporate performance are shifting—and companies that wish to thrive need to adapt to a world defined by digital engagement, embedded (and generative) AI, and low-emissions products, processes, and supply chains.

Some companies are already on board. They know how to rack up gains from digital and data investments without falling into the trap of lengthy IT projects with large cost overruns. They’ve found a way to invest not only in smart technology but also in their people, operations, and culture to realize value from their investments. Their financial and nonfinancial performance is dramatically superior to that of companies still playing by the old rules.

How are these high-performing companies getting it right? BCG’s latest research offers a clear, pragmatic blueprint for CEOs who want to ensure that their organizations are built for the future. Leaders can tailor this blueprint to their company-specific change agendas, but our research shows that future-built companies share six key attributes that, regardless of sector, underpin success:

• Leadership and Purpose. Top leadership teams in advanced companies communicate a clear vision and purpose; they create an environment of inclusion, access, and equality; and they empower people throughout the organization to make decisions.
• People Advantage. There are many aspects to delivering superior people performance, including better recruitment, retention, and development of the right talent. And the best companies offer innovative employee value propositions.
• Agile Operating Model. An operating model that enables agility and resilience combats exogenous risks and brings advantages such as faster decision making and better adoption of innovations.
• Innovation-Driven Culture. Scalable innovation often involves continuous customer feedback loops that power rapid iteration and constantly explore new technologies to push the boundaries. It’s an attribute that requires an entrepreneurial culture with a “fail fast and learn” mindset.
• Data Platform and Modernized Technology. A robust approach to making data available and defining a value-optimizing pathway to modular, scalable technology is critical.
• Embedded AI. Leading companies focus aggressively on leveraging advanced analytics and AI, finding the best ways to use the technology to create value for the organization.

A GROWING GAP

Based on a survey of 725 C-suite members, we scored each company on its journey to acquiring all six attributes and identified four groups on the basis of their progress: stagnating, emerging, scaling, and future built. The results show a widening chasm in which scaling and future-built companies are significantly outperforming their competition:

The more advanced companies (scalers and future-built firms) excel in both financial and nonfinancial measures and can boast powerful results:

• Five times as many advanced companies are scaling AI solutions as opposed to running pilots at a subscale level (72% versus 14%).
• Advanced companies invest twice as much in AI solutions and realize 3.5 times greater ROI.
• Three times as many advanced companies have stronger capabilities in the operational value chain—for example, intelligent asset management, smart factories, automated maintenance, and Industry 4.0.
• More than twice as many have stronger capabilities in sales and marketing, and twice as many have stronger capabilities in customer experience and journeys—for example, personalization, consumer-centric services, and customer support and services.
• Twice as many have stronger capabilities in digital ecosystems, such as leveraging platforms and partnerships to drive sustainable revenue growth beyond their core.
• Advanced companies show a greater proclivity for earlier-stage innovation, launching 1.6 times more ventures or new companies than less advanced firms.

There are two options. CEOs can forge high-value-creating, resilient, adaptive, and future-proofed companies that are built for the future. Or they can risk underperformance and even extinction by failing to respond fast enough to the massive changes taking place.

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