Issue Organizations lose clarity about what their core actually is as they grow

Summary

McKinsey names a lack of clarity about what the core actually is as the first of five challenges that keep companies from focusing and reallocating. As businesses grow larger and more diverse, they tend to lose sight of their core and struggle to keep growing. The report points to earlier research in which only one in ten large businesses grew revenue in seven of the past ten years. Leading companies counter this by rotating their portfolios regularly. They keep asking whether they are still the best owners of each business or segment. The report adds that strong overall growth is unlikely when the core itself is not flourishing.