Growth’s Triple Crown

Three years ago, Deloitte Consulting LLP launched The Persistence Project to identify the management practices that contribute most to sustained, superior corporate performance. Preliminary results have been published in the Harvard Business Review and the Annals of Applied Statistics. This article is the fourth in a series, providing a preview of the project’s findings.

Editor’s Note: This particular “best practices” research project is especially interesting in … [ Read more ]

Michael Raynor, Ragu Gurumurthy and Mumtaz Ahmed with Jeff schulz and Rajiv Vaidyanathan

These [research] findings are in many ways consistent with both the conventional wisdom and the academic research on M&A. It is not uncommon to hear the refrain that acquisitions—especially larger ones—are systematically associated with lower profitability and lower shareholder returns for the acquiring firm. What we observe is that triple crown winners generate a mere 7 percent, on average, of their lifetime growth from M&A, … [ Read more ]

Rank Ignorance

To get beyond the myths told of champions born of randomness we need an entirely new way to think about corporate performance.

Michael Raynor, Mumtaz Ahmed and Jeff Schulz

Although we need not “correct” for luck when allocating economic reward it is worth considering the role of luck when allocating other valuable commodities, such as our moral approbation and our efforts to learn from the experiences of others. Those who win lotteries justifiably get to keep the money, but few of us admire lottery winners just because they won the lottery. (Don’t confuse envy … [ Read more ]

It’s a Mad, Mad, Mad, Mad World

How rational managers came to be seen as reckless risk takers…
…but have been behaving sensibly all along