Only about 9 percent of global companies have been able to achieve more than a modest level of sustained and profitable growth over the course of the last decade, according to Chris Zook and James Allen in their book Repeatability: Build Enduring Businesses for a World of Constant Change. Enduringly successful companies maintain a for a simplicity at their core by adhering to a consistent set of principles which the authors describe as “great repeatable models”.
The research used by the authors provides the following significant findings:
A significant majority of the companies which were successful over the long term had “great repeatable models” , and the three most important design principles for such models were:
In my view this book makes a key contribution to the field of business strategy. The business environment has changed permanently over the past decade and it is now much more difficult to create sustained profitability. The three key design principles identified by the authors do seem to be very important for future success. I found the authors’ reasoning compelling, and I highly recommend the book to anyone involved in devising organizational strategy.