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1 episodes · 7 quoted claims
McKinsey measured the share of organizations passing its ten tests of strategy between 2010 and 2025.
“we looked at the change between 2010 and 2025 in the last fifteen years under this hypothesis that strategies are coming under pressure for all the reasons we've described.”
Andy West says McKinsey's data show about a 40% decrease in the quality of strategy over the period.
“40% decrease in the quality of strategy. So we're in this golden age of strategy potentially, and yet the quality of strategy is decreasing.”
Andy West says the economic profit of top-quintile companies rose by 245 over roughly 20 years, widening the gap between winners and losers.
“And what you see over the last 20 years is that that distribution has increased in the positive by 245.”
Andy West says the economic profit of the bottom quintile of companies fell by 170 over the same period.
“the bottom quintile, the losers have decreased by 170, the losers are losing even more.”
Andy West says the widening gap in economic profit persists after controlling for the Magnificent Seven and for industry.
“Now, when you control for the Magnificent Seven, when you control for all of the different industries out there, this phenomenon is happening all over the place.”
Andy West says investor calls show a 31 percent increase in discussion of topics like AI transformation and ESG rather than core strategy topics.
“You see a thirty one percentage increase uh in topics like AI transformation, ESG, not the core business topics or strategy topics that you'll norm normally see.”
Andy West says corporate competitive advantage is eroding at a very rapid rate.
“corporate competitive advantage is eroding at an incredibly rapid rate.”