Infographic: Winning with complexity

Strategy& studied 300 leading publically traded companies and found that their complexity challenges have been squeezing operating margins and making profitability harder – even as they continue to grow. This infographic highlights these finding in four industries – consumer products, chemicals, automotive, and industrials.

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Leading industries struggle with operational complexity
Strategy& studied 300 leading publicly traded companies, focusing on four major industries, and found that their complexity challenges have been squeezing operating margins and making profitability harder – even as they continue to grow.
Average performance by industry (2007 12) % Consumer products
14 12

Chemicals

Automotive

Industrials

13.3

10

8.5
8 6 4 2 0 -2

6.8

7.3

0.7

–0.2

0.1 –1.4

Revenue (CAGR)

Operating margin change

~90% of companies we reviewed in these industries posted revenue increases between 2007 and 2012. But less than 50% of them saw their operating margins expand during that time.

Average revenue: Average operating margins

+9% –0.4%

Revenue growth vs. operating margin expansion
46% 46% 95% 93% 87% 83% 53% 44%

Consumer products

Chemicals

Automotive

Industrials

Percentage of companies reporting increases in revenue, by industry (2007–12) Percentage of companies with operating margin expansion, by industry (2007–12)

Five foundational operating capabilities
to drive growth, asset productivity and cost savings in complex operating environments:

Enterprise-wide operations excellence Strategic supply management Di erentiated supply chains

Advantaged supply network

Innovation and development excellence

1 2 3 4 5

Learn more about how companies can capitalize on the complexity that confounds others.
Source: Strategy& research

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