This article was first published in MIT Sloan Management Review and is available via subscription.
Economic tailwinds that aid corporate growth are slowing amid uncertain times. In this environment, many organizations want to avoid large bets and, at the same time, reignite or sustain growth. To identify alternative strategies that work, BCG’s Adam Job, Ulrich Pidun, and Valentín Szekasy analyzed companies they call low-risk growers and their approaches for boosting revenue.
Of the companies in the authors’ sample, 33% monetized internal capabilities in new ways by offering them as products or services to customers. About 16% took a different M&A approach and acquired growth catalysts—businesses that added capabilities, which, in turn, helped create new revenue streams. And 33% pursued several small-scale growth initiatives, limiting the potential downside of any one option and reducing the risk to the overall company.
As these companies have demonstrated, organizations don’t have to be high-risk gamblers to grow.