Discovery-Driven Growth

Below is a selection of blog entries from Rita Gunther McGrath's blog: The Discipline of Strategic Growth.

posted by Rita McGrath on May 23, 2013

Rita McGrath was interviewed by Fox Business for its post about Facebook's IPO a year later. "The hype cycle was at its peak," said Rita McGrath, a professor at Columbia Business School and author of upcoming book The End of the Competitive Advantage. and "It has depressed expectations for IPOs, but on the other hand that's maybe a little more rational," said McGrath. To read the entire post, click here.

posted by Rita McGrath on May 22, 2013

In a new article featured in the June Harvard Business Review, I offer a summary of my new book.  Essentially, that strategy is stuck!  We've locked ourselves into a view of strategy that depends on sustainable competitive advantage.  In the new strategy playbook, we'll adopt practices that are suited to environments in which advantages come and go.  For instance, focusing on access to assets, not ownership of assets. And creating cultures in which candor is a core value.  Among the companies that I look at are firms like Sagentia, Infosys, Accenture, ACS of Spain, Berlitz and many others.  If this idea intrigues you, check out the article and subscribe to my monthly newsletter at

posted by Rita McGrath on May 20, 2013

A few folks have been asking me what I think about this acquisition.  I actually think it makes a lot of sense - relative to what Facebook spent to capture users ($30/user) or what Google spent to get viewers on  YouTube ($33/user) Yahood per-user acquisition cost is somewhere between $3.67 to $9.40 / user.  It also brings a younger demographic to Yahoo's user base, and brings largely non-overlapping content to the party.

Symbolically, it also seems to me that the acquisition gives Yahoo some much-needed cool credibility and an expansion of its engineering talent.  It doesn't hurt that Tumblr is seen as an up and coming growth firm while Yahoo is seen as an also-ran.

posted by Rita McGrath on May 16, 2013

Interview at Forbes with Dorie Clark (author of The Brand of You) in Forbes on-line. The basic idea behind the article is that we need a different way of thinking about strategy when competitive advantages are short-lived. read more...
posted by Rita McGrath on May 16, 2013

Last month, I was invited to give a talk at the National Association of Broadcasters on the core theme of my new book.  While there, I met the smart and savvy Dorie Clark, who did an interview with me for Forbes.  In the interview, I outline why we need a new playbook for strategy, one that recognizes the need for different practices when competitive advantages are short.  The new playbook calls for the following building blocks of a new form of strategy:

  • Continuous Reconfiguration
  • Healthy Disengagement
  • Deft Resource Allocation
  • Innovation Proficiency
  • Discovery Driven Mindset
  • Entrepreneurial Career Management

The book is available for pre-order from Amazon and your… read more...

posted by Rita McGrath on May 10, 2013

Over at my blog on the HBR site, you'll find some commentary on how difficult it is to cope with the constant changes necessary to be adaptive in a fast-moving economy under the glare of public ownership.  Have a look!

posted by Rita McGrath on May 9, 2013

On my blog at HBR, I observed that the business model for broadcasting is showing some cracks and that a new one is likely to emerge.  Interestingly, a recent New York Times article points out that the compensation for media CEO's is at sky-high levels, some $10 million more, give or take than the compensation of other executives.  So let me make a provocative observation:  We've seen this before in industries about to go through wrenching change.  In the near term, the companies will have pulled out of less productive markets, narrowed their range of offers, gone upmarket, learned to exert power over suppliers and done a ton of other things that makes their immediate results (and… read more...

posted by Rita McGrath on May 4, 2013

This month, I've been doing a lot of thinking about the consequences of what some have termed the "hourglass" economy, in which there is growth at the low end of the income spectrum (a boon for dollar stores) and also at the high end (why else would anybody pay so much for a cup of coffee?).  In a blog post over at the HBR site, I argue that one of the big problems facing Penney's, and many other organizations, is that the mass middle class is evaporating. 

posted by Rita McGrath on April 29, 2013

Rita McGrath is quoted at FishBowlNY about the sinking profits of the broadcasting industry, and what must be done. To read the entire post, click here. read more...
posted by Rita McGrath on April 16, 2013 interviewed Rita McGrath on the topic of Strategy in Volatile and Uncertain Environments. To read the interview, click here. read more...