The Blueprint to a Billion™ Growth
Pattern
What
does it really take to become a billion-dollar company?
Turns out, the answer did not come from soft subjects such
as organizational development or leadership theory, or from
an examination of divisions or operating units in larger
companies. It came from a quantitative and fact-based analysis
of America's fastest growing companies.
Furthermore, the analysis had to hinge on what is often
overlooked: revenue performance. Every company can invest,
even over invest, to grow. However, not every company can
create revenue growth. How many times have you heard a CEO
announcing quarterly results stating that earnings did not
meet expectations because of a revenue shortfall, yet expenditures
met or exceeded budget?
Microsoft, Google, eBay, Staples, Genentech, Time Warner,
Starbucks, Nike, Charles Schwab, First Third Bancorp, amd
Harley-Davidson…these are a few examples of an elite group
of companies that turned Big Ideas into billion-dollar businesses.
What "blueprint" did they follow to product such results?
What commonalities arose among these very different companies
in a wide range of industries? Based on years of in-depth
research, David Thomson's Blueprint to a Billon provides
the first quantitative assessment of the success pattern
common across a distinct group of "elite" group of 387 "Blueprint
Companies" - the 5% that have IPO'd since 1980 and grown
to $1 billion in revenue.
When the Blueprint Companies were compared to the remaining
5,048 companies that went public since 1980 and are still
active in 2005 (2,019 of these companies have since gone
out of business), it was remarkable to note the impact that
such a few companies have achieved. Blueprint Companies
are America's growth engine: These 5 percent of American
companies that went public since 1980 account for 62 percent
of employment at year end 2004 and 67 percent of market
value!
Blueprint Companies Are America's Growth Engine
Source: Standard & Poor's Compustat, Blueprint analysis
The disproportionate success of the Blueprint Companies
makes it apparent that they are the heart of America's innovation
and growth. These companies are the best-in-class set that
this study draws from. This highly disproportionate ratio
suggests that unless their different approach-the 7 Essentials-is
utilized, the odds are higher for business teams to be part
of the 95 percent than the 5 percent. Do you think you can
change your odds by understanding the success pattern of
this select set of companies? I do.
Look around and you will find Blueprint Companies everywhere.
Their products enhance our everyday lives. They are at the
top of their markets. When was the last time you used Microsoft
software, used the Internet (which rides on Cisco equipment),
searched the web using Google, sipped a Starbucks latte,
shopped on eBay or Amazon.com, purchased products at Williams-Sonoma,
Staples or Home Depot, watched movies from Time Warner,
took medicine made by Amgen, Genentech or MedImmune, used
financial services from Charles Schwab or rode your Harley-Davidson
motorcycle? Do you depend on Express Scripts, UnitedHealth
Group or HCA for your health plan?
You may think every company is unique. And it is. But there
is something that the minority saw about what to do in order
to create a successful company- with exponential growth-that
the rest of us are missing. The numbers prove it. Blueprint
to a Billion identifies the common essentials exhibited
across Blueprint Companies in all industries; it is not
about the lessons learned from one or even a few successful
companies within one industry. Neither is it about
a single heroic leader or a particular era of business success.
My research colleagues and I wanted to discover the roadmap
to $1 billion revenue, not $1 billion market value. The
research for this book was driven by the desire to know
the answer to questions such as, "What role did customers
play in shaping an exponential growth company?" "What was
the investment profile for creating exponential growth-over
invest to grow or become cash flow positive early and scale?"
David Thomson has been leading business growth for
20 years in general management and executive sales and marketing
roles at Nortel Networks and Hewlett-Packard. He also
served as an Associate Principal during his five years at
McKinsey & Company. His book, Blueprint to a Billion: 7
Essentials to Achieve Exponential Growth is the first quantitative
dissection of how America's most successful companies made
it to the top. The book has just been released by John Wiley
& Sons and is available through bookstores or Amazon.com.
Please refer to www.blueprinttoabillion.com for additional
information or to order the book.
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