- Four years ago, Fortune teamed up with BCG to try and answer that question. The result is Fortune’s Future 50 list.
- Martin Reeves, chairman of the BCG Henderson Institute: “it is not only possible to increase performance during a crisis, but that outperformance during a crisis can determine peacetime performance.”
- Which companies will survive and thrive two decades from now? It’s a good question for both investors and job hunters to ask, especially considering that roughly half the companies on the Fortune 500 list in the year 2000 are no longer there today.
- Four years ago, Fortune teamed up with BCG to try and answer that question. The result is Fortune’s Future 50 list—the fourth edition of which is out this morning. The ranking is based on two pillars: a “top-down” market-based assessment of a company’s potential to generate future profits, and a “bottom-up” analysis that BCG developed using machine learning to select and weigh various factors based on their contributions to long-term growth.
- Every successful business starts with an act of imagination. But the most innovative companies are those that continually reimagine their potential—even if it means embracing radical shifts in strategy. That relentless focus on the future typically pays off handsomely for investors.
- Three years ago, Fortune teamed up with management consulting firm BCG to create the Future 50, using a proprietary system that analyzes dozens of factors to identify companies with the best long-term growth potential.
- The 50 companies on last year’s list produced a cumulative shareholder return of 71% since publication vs. 21% for the S&P 500 over the same span. Read on to explore this year’s ranking.
- In stable times, sticking with a proven formula makes sense. For successful companies, it’s a good bet that the products and models that are working well today will continue to work in the future. But in volatile and uncertain times—when the need for resilience rises to the forefront—adapting to new circumstances and reinventing businesses become central challenges.
- The events of 2020 have reminded us how quickly the pattern of challenge can change.
- Even before the pandemic, however, change and uncertainty were on the rise. That’s why BCG and Fortune created the Future 50 index together more than three years ago. We wanted to identify companies with the greatest capacity to continually reinvent their businesses and sustain long-term growth—what we call corporate “vitality.” The past year has shown that vital companies don’t just survive adversity. They use it to create a competitive advantage.
- A proven formula. This is the fourth annual edition of our Future 50 index, which assesses the long-term growth prospects of large public companies and identifies who comes out on top. It is intended as a forward-looking companion to traditional business metrics, which generally show only what has happened in the past.
- The issue of climate change presents one of the most difficult decision-making challenges a CEO might face—a case study in balancing uncertainty with costs to bring about changes that will require significant lead times. Businesses like ours that take climate change seriously are investing today because we’re thinking about tomorrow.
- Business leaders can no longer afford to be skeptical and interminably patient, waiting for every theory to be vetted or every climate model to be proven. The overall mechanism of action and direction of travel is clear. We should not expect comprehensive public policy and unanimity to do the job for us.
- This is a moment of truth for industry leaders.
Category 2: The Big Picture of The Digital Age
[genioux fact extracted from Fortune + BCG]
Authors of the genioux fact
- CEODAILY by Alan Murray, Alan Murray and David Meyer, December 3, 2020, Fortune.
- Future 50, December 3, 2020, Fortune.
- Finding advantage in adversity: How the Future 50 positioned themselves for growth, even in 2020, Martin Reeves and Kevin Whitaker, December 3, 2020, Fortune.
- Nestlé CEO: Climate change laggards put the planet—and their businesses—at risk, Mark Schneider, December 3, 2020, Fortune.