Trend Shift 6: concentration on the core displaces breadth as the growth strategy
Summary
McKinsey's sixth shift holds that accelerating change plus competitive intensity and resource constraints are forcing organizations to differentiate, concentrate on strengths, and reallocate resources faster, with some activities that were once core no longer being so.
Classification
Main topicMacroeconomy & Finance
Region menusGlobal
Impactscope:global
Time horizon0-3 years (2026-07-26)
Last updated2026-07-29 04:49:52
Evidence 1
- The State of Organizations 2026 McKinsey & Company page=44;section=Economic disruption: Focusing on the core - Doing the right thing with more intensity 2026-02 accessed 2026-07-26
Observed signals 9
- Signal74% would not move more than a tenth of their workforce; only 30% reallocate enterprise-wide
- SignalAbout 80% of a typical company's growth comes from its core industry
- SignalCertain strategic moves raise the odds of reaching the top performance quintile sixfold
- SignalClarity on must-win battles falls from 56% of executives to 27% of middle managers
- SignalLeaders clear on priorities are more optimistic and more confident in adapting
- SignalLeaders unclear on priorities are more pessimistic about AI
- SignalManagerial protectionism (41%) is the top barrier to reallocating budget and talent
- SignalOnly one in six companies with a lagging core outgrew peers overall
- SignalSemiconductors moved from laggard to leader by combining portfolio and performance moves
Part of issues 3
- IssueOrganizations hesitate to divest even when they are no longer the best owner1 trends · 0 signals
- IssueOrganizations lose clarity about what their core actually is as they grow1 trends · 1 signals
- IssuePeanut buttering: spreading capital and talent evenly dilutes impact1 trends · 0 signals
Relation types: constitutes · supports
Public id: fm-a987372d6116