How do you measure success if growth is the default answer in most companies? Gary Pisano argues that growth still matters, but leaders need a more serious way to think about it. His research on nearly 11,000 public U.S. companies shows that most businesses do not sustain strong growth over time. Many stay flat after inflation, and even firms that post strong growth in one period usually struggle to keep it going. That does not mean growth is the wrong goal. It means leaders need to stop treating it like a simple number and start treating it like a strategy.
Pisano explains that companies often fail when they chase demand without checking whether they have the people, systems, culture, suppliers, and management strength to support it. Cash can be borrowed. Capability usually cannot. When leaders stretch beyond what the organization can handle, they damage service, weaken quality, and create cost structures that are hard to sustain. That is why he says growth should be based on both market demand and internal capacity.
A better approach starts by asking, how do you measure success in a way that fits reality? Pisano says companies need a real growth strategy built around three choices: rate, direction, and method. Leaders must decide how fast to grow, where to grow, and how to build the resources needed to support that growth. Strong companies do not just push for more. They invest ahead of demand, identify bottlenecks early, and grow at a pace their organization can support.
How do you measure success, then? Not by chasing the biggest target. Success comes from building the capability to grow profitably, steadily, and credibly over time.