WHY MOST BUSINESSES FAIL – AND HOW TO BUCK THE TREND – Footnotes

1. “Creative Destruction – why companies that are built to last, underperform the market”, by Richard Foster & Sarah Kaplan.

2 “Unstoppable” by Chris Zook, 2007, Page 7.

3. Accenture Thriving Disruption Infographic, 2016 

4. Christoph Loos, CEO Hilti Group, Swiss AmCham Luncheon, September 1, 2015.  Analysis based on about 2,000 public companies in 2002 with revenues greater than $500 million.  Sustainable value creation defined as: real revenue growth exceeding 5.5% per year, real profit growth exceeding 5.5% per year, and earning cost of capital.

5. Improving Board Governance”, McKinsey Quarterly, August, 2013.

6. “A time for boards to act” McKinsey Survey, March, 2018.

7. “Creating the Office of Strategy Management”, Harvard Business School; paper 05-701, by Robert Kaplan and David Norton.

8. 2017 Global CEO Outlook – KPMG.

9. How can you be both the disruptor and the disrupted?” Ernst & Young, 2017.

10. Peter Drucker, Harvard Business Review, November 2009, Page 90.

Additional Resources

2018 Legevity Report by Innosight Consulting

“Why Companies Fail”, Shikhar Ghosh, Harvard Business School, 2011 March 07, his study of 2,000 high potential venture capital backed companies receiving at least $1 million in funding from 2004 to 2010.

“Profit from the Core” by Chris Zook. 1,800 companies in seven countries with sales in excess of $500 million analyzed. Criteria were: 5.5% after inflation sales growth; 5.5% real earnings growth; total shareholder returns exceed cost of capital.

“It’s 8-to-1 against Your Change Program”, Bain website, Managing Change Blog, June 23. 2017.