Beat the odds with a bold strategy from McKinsey & Company"Every once in a while, a genuinely fresh approach to business strategy appears"--legendary business professor Richard Rumelt, UCLAMcKinsey & Company's newest, most definitive, and most irreverent book on strategy--which thousands of executives are already using--is a must-read for all C-suite executives looking to create winning corporate strategies.Strategy Beyond the Hockey Stick is spearheading an empirical revolution in the field of strategy. Based on an extensive analysis of the key factors that drove the long-term performance of thousands of global companies, the book offers a ground-breaking formula that enables you to objectively assess your strategy's real odds of future success."This book is fundamental. The principles laid out here, with compelling data, are a great way around the social pitfalls in strategy development."--Frans Van Houten, CEO, Royal Philips N.V.The authors have discovered that over a 10-year period, just 1 in 12 companies manage to jump from the middle tier of corporate performance--where 60% of companies reside, making very little economic profit--to the top quintile where 90% of global economic profit is made. This movement does not happen by magic--it depends on your company's current position, the trends it faces, and the big moves you make to give it the strongest chance of vaulting over the competition.This is not another strategy framework. Rather, Strategy Beyond the Hockey Stick shows, through empirical analysis and the experiences of dozens of companies that have successfully made multiple big moves, that to dramatically improve performance, you have to overcome incrementalism and corporate inertia."A different kind of book--I couldn't put it down. Inspiring new insights on the facts of what it takes to move a company's performance, combined with practical advice on how to deal with real-life dynamics in management teams."--Jane Fraser, CEO, Citigroup Latin America

Introduction: Welcome to the Strategy Room 1You are not alone 2The villain is the social side of strategy 4Where is the outside view? 6Making big moves happen 8The journey ahead of us 91. Games in the Strategy Room--and Why People Play Them 13The social side of strategy, in action 15The dreaded hockey stick 17Can we handle the truth? 20Playing the inside game 21Send in the guru 22The wrong problem for human brains 23The biased mind 25Now add social dynamics to the mix 27When the inside view remains unchecked 312. Opening the Windows of Your Strategy Room 37The right yardstick 40Your business lives on a Power Curve 42What we see on the map 44Why you are where you are 49A fresh perspective with the outside view 533. Hockey Stick Dreams, Hairy Back Realities 57The rise of the hairy back 58Getting to yes 60A haircut from finance 60Bold forecasts 62Timid plans 68Corporate peanut butter 70Shooting for the known 70Real hockey sticks 724. What are the Odds? 75The knowable probability of success 77Flight paths of the upwardly mobile 80A tale of three companies 83Where are the odds in the strategy room? 85The push for certainty 87You are your numbers 895. How to Find the Real Hockey Stick 93What's different this time? 94Check the facts 95The odds that matter: Yours 96The 10 variables that make the difference 99Endowment 100Trends 101Moves 102It all matters 103The mobility dashboard 105Know the odds 109Is that all? 1106. The Writing is on the Wall 115A very different conversation about strategy 118Tennis or badminton? 119Industries are escalators 120Change your industry or change industries 123Consider changing locations, too 124Go micro 125The need for privileged insights 127Acting on the writing on the wall 128The four stages of a disruptive trend 130Stage one: Signals amid the noise 132Stage two: Change takes hold 134Stage three: The inevitable transformation 136The hardest stage 136Stage four: Adapting to the new normal 1397. Making the Right (big) Moves 143Big moves are essential 146Corning's story 150Programmatic M&A and divestitures 150Active resource re-allocation 152To re-allocate, you have to de-allocate 156Strong capital programs 156Caution on capex 158Distinctive productivity improvement 158Running fast and getting nowhere 159Differentiation improvement 162Are you playing to your advantage? 165Big moves make for good strategy 1668. Eight Shifts to Unlock Strategy 173From annual planning ... to strategy as a journey 175From getting to "yes" ... to debating real alternatives 177From peanut butter ... to picking your 1-in-10s 181From approving budgets ... to making big moves 184From budget inertia ... to liquid resources 188From sandbagging ... to open risk portfolios 190From "you are your numbers" ... to a holistic performance view 193From long-range planning ... to forcing the first step 196The package deal 198Epilogue: New Life in the Strategy Room 201Acknowledgments 205Appendix 207About our sample and method 207A note on economic profi t and total returns to shareholders 209How the odds look different from the top or bottom 209Life at the top 211Life at the bottom 211Notes 215Index 227