Copy of Why a Handful of Bold Companies Are Doing All the Heavy Lifting (And What That Means for the Rest of Us) (TPL Insights #275)

By Rob Andrews with paraphrased content from Jan Mischke, Chris Bradley, Olivia White, Guillaume Dagorret, Sven Smit, Dymfke Kuijpers, Charles Atkins, and Ishaa Sandhu

If you’ve ever felt like your company is doing all the work while everyone else just exists—congrats, you’re probably a Standout. And no, that’s not just a compliment from your mother. According to a juicy new study by the McKinsey Global Institute (2024), a tiny sliver of firms are responsible for nearly all of the productivity growth in their industries. We’re talking needle-moving, economy-shaping, fist-pump-worthy growth. Meanwhile, most companies are either drifting aimlessly or actively dragging things down.

This is like discovering that five kids in the classroom are doing the homework for everyone—and three of them also cleaned the erasers and fixed the smartboard.

The Power of the Bold Few

Here’s the big headline: Fewer than 100 firms out of 8,300 studied (yes, you read that right—just over 1%) drove two-thirds of the productivity growth in three major economies: the U.S., the U.K., and Germany. These are the “Standouts.” And the kicker? Just a few more bold firms could have doubled national productivity growth.

On the flip side, a handful of “Stragglers” (we all know a few) managed to tank productivity almost single-handedly. One or two companies in each country accounted for over half the negative impact. Let that sink in.

In other words: we’re not all in this together. Some firms are sprinting the marathon while others are chewing on the baton.

What Sets Standouts Apart? (Hint: It’s Not Just Size)

You’d think being a big dog automatically makes you a productivity powerhouse. Not so. The study found that size helps—but it doesn’t guarantee standout status. In fact, large firms are just as likely to be Stragglers as they are to be Standouts. Turns out, it’s not about how big you are—it’s about how bold you are.

Standouts aren’t just more efficient—they’re strategic shapeshifters. They make gutsy moves. They:

– Scale new business models or tech (think Amazon or Apple)

– Shift their product or regional portfolios toward more profitable terrain

– Redesign their customer value proposition to create more “wow”

– Build powerful networks and economies of scale

– And only occasionally—very occasionally—cut costs like the rest of us

Efficiency, it turns out, is not the holy grail. Innovation, scale, and value creation are.

What About the Middle of the Pack?

There’s good news for the rest of us. Roughly half of all firms in the study grew productivity faster than their sector average. About 20% even increased their productivity 1.5x and grew headcount. So the middle isn’t lost. But the real action—the big, macroeconomic impact—is happening at the edges.

And MSMEs (micro, small, and medium-sized enterprises)? Collectively, they matter. But individually, they’re usually too small to shift the national dial. However, today’s MSME could be tomorrow’s Standout—so don’t count out the little guys with big ideas.

The U.S. Gets a Gold Star (For Now)

The U.S. outperformed Germany and the U.K. in productivity growth from 2011 to 2019. Why? Two main reasons:

More Standouts, fewer Stragglers—especially in tech and electronics.

More dynamic reallocation of people and resources—top firms grew fast, and laggards restructured or exited quickly.

Translation: U.S. firms didn’t just work harder; they moved faster—and weren’t afraid to leave underperformers behind.

So… What Should Business Leaders Actually Do With This?

Here’s the message I’d want any CEO, CHRO, or board member to hear:

If you want to be a Standout, you have to act like one.

That means:

– Making bold strategic bets—not just shaving costs

– Investing in new value creation—not just incremental improvement

– Scaling what works, fast

– Letting go of the stuff (and people) that aren’t moving the needle

– Building systems that reward risk-taking, not just stability

Productivity isn’t just a finance term—it’s a cultural mindset. Standouts behave differently, lead differently, and measure success differently. And the impact of their choices isn’t just company-wide—it’s economy-wide.

Final Thought: Be the One Who Moves the Needle

The research suggests a pretty compelling truth: a single company can shift national productivity. That’s wild. And empowering. Because if one company can drive macro impact, yours can too. But only if you stop playing small.

So the next time you’re in a leadership meeting and someone says, “Let’s just tweak this a little,” maybe ask: What would a Standout do?

Call to Action: Ready to Find Out If You’re a Standout?

If your gut says there’s more inside your organization—but you’re not sure how to unleash it—we should talk. Whether it’s culture shaping, strategic clarity, leadership alignment, or building a high-performance mindset, this is what we do. And we’ve helped bold companies turn possibility into performance for over 30 years.

DM me or email randrews@allenaustin.com and let’s figure out if your firm is ready to move from good to Standout.

Best,

Rob Andrews

Chairman & Chief Executive Officer

Celebrating 28 years of Executive Search, Leadership Advisory, and Interim Executive Excellence

Direct: 713.489.9724/ Mobile: 713.301.6130

4801 Woodway Dr., Suite 130W, Houston, TX, 77056

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Reference

Manyika, J., Smit, S., Woetzel, J., & Seong, J. (2024). Productivity growth: The power of one. McKinsey Global Institute. https://www.mckinsey.com/mgi