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Main Data
Author: Henrik Werdelin
Title: The Acorn Method How Companies Get Growing Again
Publisher: Lioncrest Publishing
ISBN/ISSN: 9781544508191
Edition: 1
Price: CHF 11.30
Publication date: 01/01/2020
Content
Category: Wirtschaft/Management
Language: English
Technical Data
Pages: 210
Kopierschutz: kein Kopierschutz
Geräte: PC/MAC/eReader/Tablet
Formate: ePUB
Table of contents
If you're responsible for the growth of your organization-as a founder, C-suite executive, or a change agent-you know the landscape is changing. Mature companies invest 10x more than VCs but are growing slower than before. To create real, lasting growth, you'll need a new mindset, one that borrows from not just the startup world, but also the natural world. Similar to how oak trees regenerate by dropping acorns that become new trees, you need to grow new lines of business within your existing organization. You need to learn how to build a forest-not just a bigger tree. Henrik Werdelin specializes in applying lessons from startups to existing businesses to get them growing again. In The Acorn Method, he shows you how to create, implement, govern, and scale new business within your organization. You'll get the step-by-step process, the philosophy behind it, as well as case studies of businesses that have grown using this method. By learning how to create 'acorns' in your business, you'll create longevity and ensure that other trees don't grow quicker and steal your sunlight.
Table of contents

Introduction


In 1964, a company in the S&P 500 stock exchange could expect to stay there for an average of thirty-three years. By 2016, the average length of tenure had fallen by almost a third. The projection for ten years on? Half that. The three most valuable companies of 2018 werent even in 2008s top ten.

Confronted with an unprecedented amount of churn and facing shortening product life cycles and expanding fields of competition, todays CEOs and Chief Innovation Officers are under enormous pressure to find new, fast-growth revenue. Because the corporate growth toolkit hasnt changed much in the last century, they have had only two real options: improve on their companys existing capabilities or acquire another companys capabilities. Accordingly, in 2018 alone, S&P 500 companies invested a combined total of more than $1.3 trillion in Research and Development, Capital Expenditures, and Mergers and Acquisitions.

Considering this figure is thirteen times the record $100 billion the US Venture Capital industry deployed in the same period, youd think wed all be doing at least twice as well. In fact, each dollar invested in corporate growth today returns 15 percent less revenue than it did ten years ago. Mature companies are spending more to grow less.

I believe mature companies are like tall trees; they grow until gravity constrains them. They may shoot up rapidly, generating tiers of new branches and reaching great heights, but eventually, new growth can no longer successfully compete for resources with older branches higher up the tree.

Trees, however, dont only grow vertically. Over the last 385 million years, they have developed alternate, horizontal growth systems, enabling them to become the longest-lived multicellular organism on the planet. The famously long-lived oak, once it reaches maturity, produces acorns, a method of regeneration so successful that it has become a keystone speciesone on which entire ecosystems are anchored. I believe companies, likewise, confront a natural upward growth boundary, but that they can also dramatically increase their longevity by developing lateral, offshoot companiesby creating a forest rather than a taller tree.

In this book, I argue that to survive beyond its upward growth boundary, every mature company needs to build a diversified but coherent portfolio of small, fast-growth asset companies as part of a new tree-and-forest, horizontal growth paradigm.

I call this the Acorn Method.

The Acorn Method is both a philosophical stance and a practical series of s