How Standout Firms Drive National Productivity

This technical report from the McKinsey Global Institute examines the role of standout firms in driving national productivity growth. It identifies that a small number of firms are responsible for a significant portion of productivity improvements, with fewer than 100 standout firms accounting for two-thirds of productivity growth in a sample of 8,300 large firms across Germany, the United Kingdom, and the United States. The report outlines how productivity is generated in powerful bursts rather than gradual changes, emphasizing the importance of bold strategic moves by these firms. It also discusses the implications of these findings for economic growth, highlighting that productivity growth is essential for addressing global challenges such as demographic transitions and economic sustainability. The report suggests a new productivity growth playbook that focuses on value creation and resource reallocation to leading businesses, moving away from traditional efficiency metrics. This research aims to provide a deeper understanding of the factors that contribute to productivity at the firm level.