Signal People-and-performance organizations sustain top-tier financial performance at 4.3 times the rate

Summary

McKinsey research finds that organizations investing in both their people and their performance, which it calls P&P organizations, deliver unusually durable financial results. They are 4.3 times as likely as the average company to hold top-tier financial performance in nine years out of ten and 1.5 times as likely to remain high performers over time. Their earnings are only half as volatile as those of peers, and during the pandemic their revenue grew twice as fast as that of companies focused purely on performance. The report links this to resilience, since steadier earnings bring stock market rewards and every dollar put into human and organizational capital yields about 30 percent more revenue growth than at peers. Balancing people and results thus appears to reinforce rather than trade off against financial outcomes.