Business leaders can no longer rely on a tailwind to boost growth. They face encroaching constraints on all fronts: trade wars are eroding the globalization premium businesses have enjoyed over the past 30-plus years; the era of essentially free capital, which Western firms had enjoyed for more than a decade, has ended; and, with the ongoing demographic shift, automatic population-driven growth is no longer a given in most of the developed world.
Consequently, in the first quarter of 2025, GDP growth forecasts were revised downward for the US and EU. Achieving growth in this environment will require a dedicated effort—a growth transformation. Unfortunately, such transformations have low odds of success: our analysis of 1,700 transformations globally over the past 20 years shows that only about one-third accelerate growth in a value-accretive way.
More: https://www.bcg.com/publications/2025/
Three Paradoxes of Growth Transformation
The very idea of transforming for growth during a slowdown may seem contradictory. But in our research, the companies that succeed in this effort do so by embracing paradox, not avoiding it. At the heart of every successful growth transformation are three such tensions—each one representing a key challenge leaders must reconcile to tip the odds in their favor.
Paradox #1: Creativity vs. Discipline. A successful growth transformation requires fostering an environment that balances creativity with disciplined execution
Paradox 2: Vision vs. Foundation. Successfully transforming for growth requires setting out a long-term vision for the firm. But it also means building the foundations in the short term that enable delivery on that vision—by freeing up resources and reducing pressure from stakeholders.
Paradox 3: Experience vs. Adaptability. In a turbulent world, transformation needs to turn from a one-time effort into an always-on capability. However, as companies embark on repeated change journeys, they need to adapt their approach to change alongside the challenges they face.
The Ten Success Factors
In studying the companies that have effectively navigated these three paradoxes, we’ve identified ten distinct factors that consistently drive successful growth transformations. Some factors are prerequisite capabilities—such as fostering a creative culture and investing in innovation—while others fall under the umbrella of transformation execution, such as setting up a formal program or appointing a chief transformation officer.
More: https://www.bcg.com/publications/2025/