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The dating app paradox: Why dating apps may be worse than ever
Over the last couple of years, dating app companies like Match Group and Bumble have learned that, like love, their business is a battlefield. Their stock prices are on the rocks . Their investors are heartbroken. They're getting ghosted by users and failing to woo Generation Z. It's no wonder why the CEOs of both companies have recently resigned .
Lost love in the crowded dating app market is nothing new. One moment a dating app might be hot and heavy with consumers, but the next they're getting dumped. Match Group has tried to overcome this problem by incubating new dating apps and, more aggressively, acquiring rival ones. Originally just associated with the dating site Match.com, Match Group now oversees a sprawling dating empire of at least 45 dating apps , including Tinder , OkCupid , Hinge and The League .
Before we dive deeper into their problems, it's worth saying that dating apps have helped many people find love. According to a survey of Americans by Pew Research Center published last year , "one-in-ten partnered adults — meaning those who are married, living with a partner or in a committed romantic relationship — met their current significant other through a dating site or app."
But there's an awkward tension at the heart of the dating app business model. They are for-profit tech companies that want to attract as many users as possible and inevitably make money from them. But at the same time, true success for their users — at least for the large population looking for more than just hookups — means that they find love and get off the apps. For each successful match, the dating app loses not just one, but two customers!
Call it the dating app paradox: Dating apps are supposed to be matching lovebirds together, but once they do, the lovebirds fly away — and take their money with them.
[Editor's note: This is an excerpt of Planet Money 's newsletter. You can sign up here .]
Of all the dating apps, Hinge — a Match Group property that has grown increasingly popular in recent years — is perhaps the most illustrative of the dating app paradox. Hinge markets itself as "the dating app designed to be deleted." How many other companies market themselves this way? Hinge is literally touting success as constantly losing customers. Their social and business missions are in a messy relationship, to say the least.
A viral theory for why dating apps are so bad
Last month, TikTok user bianca (@infinitebs), who calls herself an "amateur sociologist & silly goose" on her profile, released a viral TikTok video in which she argues that, basically, Hinge is the latest dating app to inevitably fall victim to the core contradiction between its missions of matchmaking and moneymaking.
Hinge, like many other dating apps, has a "freemium" business model, which means you can sign up and use the basic app for free, but extras — like a higher-visibility profile or the ability to message people who have not shown interest in you — cost money.
According to a poll published by Pew last year , about a third of Americans who have used dating apps have paid to do so. Morgan Stanley found that dating app users who choose to pay end up spending "between $18 and $19 per month on either subscriptions or a la carte purchases."
But the dating app companies — and their investors — are apparently not satisfied with the number of users who are choosing to pay for their services. With their stock prices in the gutter and their investors clamoring for more revenue, many dating apps have been shifting gears to entice more free users to become paid users.
Like many other users , Bianca is not happy with that. Hinge, she argues, has "hit the inflection point" where its free version is "absolute trash." In its mission to make money, it has been using tricks and schemes — like, she says, putting desirable matches "behind a paywall" — to convince more of its users to pony up and use premium features.
Dating apps aren't alone in seemingly getting worse when they try to make money. In fact, last year journalist Cory Doctorow coined a term for this pattern: "enshittification." Basically, Doctorow says tech platforms start off trying to make their user experiences really good because their first goal is to try to become popular and achieve scale. But over time, they inevitably pursue their ultimate goal of making money, which ends up making the whole user experience "enshittified."
Historically at least, daters could find an easy solution if a dating app put its moneymaking interest ahead of its interest in matchmaking and ruined the user experience. That fix: healthy competition. Lovebirds would flock to another app. For example, as Bianca notes in her video, when Tinder went downhill, users headed to Bumble and then eventually to Hinge.
But unlike previous sagas in the dating app wars, Bianca asserts, a new better app has failed to overtake Hinge. The result: "Dating apps have never been worse than they are now." Bianca is hardly alone in asserting that dating apps are now worse than ever.
So if we accept that we've now entered the dark ages of app dating, why isn't competition working anymore? It's possible that new apps are failing to rise and topple the reigning ones because of monopolistic strategies of companies like Match Group, which has been systematically acquiring rivals, including Hinge back in 2018 .
Match Group, of course, denies that its acquisition strategy hurts healthy competition in the dating app market. And it also rejects what we've been calling the dating app paradox. It doesn't see a contradiction between its goals of matchmaking and moneymaking. It sees its social and business missions as in a stable, beautiful marriage.
"Our goal is to make meaningful connections for every single person on our platforms," says a Match Group spokesperson. "Our business model is driven by providing users with great experiences, so they champion our brands and their power to form life-changing relationships. Unlike many other tech platforms, our business is not driven by keeping users engaged on the apps, but by successful outcomes. We receive wedding invitations and hear Match Group love stories every day, and we celebrate those."
Match Group argues, in other words, that its business incentives are aligned with the interests of its users looking for lasting love. But are they really? Sure, app executives may get warm, fuzzy feelings about receiving wedding invitations from their clients. Matched couples may even tell their single friends, helping to convince new people to join their apps.
However, we can imagine a dating app business model where its incentives are much more closely aligned with users' hopes of finding love. Imagine the app gets paid only when people successfully match and leave the app! Now that would eliminate the dating app paradox.
Adverse selection in the dating app market?
It's possible there's another classic economics problem behind the cycle of dating app degradation. Daters looking for a life partner inevitably confront serious information problems. The people on these apps, after all, are usually complete strangers — and the only information you have about them is what they choose to put on their profiles. That may be fine for people just looking for hookups. But a core challenge for daters looking for true love on these apps: How do you sift through the players and commitment-phobes and find the gems?
Economist George Akerlof won a Nobel Prize for his work explaining how information problems like this can ruin a market. (Fun fact: Akerlof is U.S. Treasury Secretary Janet Yellen's husband. Now that's a worthy match!) Akerlof famously used the example of used cars to explain how bad information can result in market failures.
It's well known that as soon as you drive a new car off the lot, its value drops precipitously. For a long time, economists explained this phenomenon by claiming that people just place a premium on having a brand-new car.
But Akerlof offered a different explanation: Buyers of used cars lack vital information about what they're buying. When you buy a used car, there's always the chance it could be a lemon. Because of this risk of buying a piece of junk, Akerlof theorized, buyers become unwilling to pay top dollar for them. It's too risky. They treat every car like a potential lemon and demand a discount, even if the cars they're buying may actually look and run great.
And that creates a problem for the sellers of used cars that are actually good. These sellers are like, "What the heck?! I know my car isn't a lemon! It's worth way more than what you're willing to pay!" And so they refuse to sell their used car and they exit the market. The result is a market where lemons become more prevalent.
It's a vicious spiral where, as buyers become more suspicious that every car is a lemon, they demand further price markdowns and owners of good used cars become even more unwilling to sell at the lower price. Ultimately, the whole market gets destroyed. Because buyers have a hard time determining good from bad, the lemons drive quality used cars out of the market. Economists call this adverse selection. ( Listen to this Planet Money Summer School episode for more . Spotify / Apple Podcasts )
It's possible that dating apps face adverse selection. Basically, a new app starts up, and hopeless romantics looking for real love begin flocking to it. But so do sleazy types who lie on their dating profiles. Over time, the earnest daters go on a bunch of bad dates, encountering people who have no interest in real relationships or whose profiles are completely misleading.
Like lemons driving good cars out of the used-car market, maybe sleazeballs push great catches out of dating apps and ultimately ruin the quality of the whole app experience. So people go to a new app with the hopes of finding something better, and the cycle starts again.
Akerlof saw solutions to the lemon problem. Basically, people need warranties or ways to get better information about what they're buying. We've seen advances like this in the used-car market. For example, the company Carfax offers trusted information about the history of used cars. You can find out about a vehicle's history of accidents or its trips to the mechanic, for instance. This helps buyers overcome their suspicions and helps sellers of good used cars prove their cars are worth top dollar.
It's possible that dating apps could try to find similar solutions. Think like a Carfax for daters! Or a rating system, which is Airbnb's solution to this kind of information problem. Of course, daters will probably object to any system that gives your exes the power to rate you :). It's possible, however, that app designers could find more suitable solutions to the information problems of the online dating world.
All this said, maybe dating is just hard, especially now that you can potentially match with a much bigger number of people thanks to technology. Whatever the case, if you're in the market for love, good luck and, ummm, Happy Valentine's Day!
Extra listening: Check out our annual Valentine's Day episode in the Planet Money feed , where we send love letters to our favorite stories and books and whatever else that other people have made that taught us things or just made us jealous. Or try this Planet Money classic on how all those roses make it to your local florist on Feb. 14 .
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Love problem solution
Solution of Love Problems
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Relationships play an essential role in our lives – be they familial, platonic friendships or intimate partnerships. From providing unconditional love and support to experiencing both the joys and difficulties associated with intimacy, relationships are an integral component of being human.
Every relationship faces its own set of difficulties, yet there are steps you can take to help yours overcome them and thrive over time. This time they need help of Love Problem Solution.
Communication is at the core of developing and maintaining healthy relationships, and open, honest, nonjudgmental dialogue should form the cornerstone of any effective relationship management plan.
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Partners may become complacent over time and stop providing each other with sufficient affection and emotional support, often at one partner’s expense. If this sounds familiar in your relationship, taking measures such as increasing efforts or spending quality time together could be key steps toward rectifying things again.
One way to overcome this difficulty is by setting aside dedicated time without phones! When engaging in dialogue, active listeners rather than speakers should take part.
Your partner and you may be able to address certain issues on their own, while professional advice may be essential in dealing with others. Consulting a counselor could offer invaluable insight and strategies for strengthening your relationship.
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Studies show that sharing life’s challenges may make life less taxing; successful couples tend to report lower depressive symptoms than individuals living alone, widowed individuals, single people living independently or those recently divorced or separated.
Positive relationships can do wonders to boost an individual’s self-esteem and confidence, instilling pride in themselves and their abilities while encouraging greater risk-taking to pursue dreams.
Divorce can be emotionally and physically draining for both parties involved, leaving lasting repercussions behind. Though difficult, divorce must happen so future relationships can thrive and thrive.
As couples navigate their divorce proceedings, five stages may come into play during this process: denial, anger, bargaining, resentment and acceptance. Both partners should strive to successfully manage these stages to find amicable resolution to any disagreements that may arise between them.
couples often try to avoid discussing any problems within their marriage in order to maintain an illusion that all is fine, leading them to continue fighting without ever discussing what’s bothering them and eventually leading to dissension and eventually divorce.
What should you do for love problem solution?
Once couples recognize they’re experiencing difficulty, negotiations to secure its future begin in earnest. Unfortunately, however, this process can become emotionally draining and contentious – leading both partners to display open displays of anger against one another.
Once this occurs, it often leads to anger between partners as each points fingers at one another for any problems in their marriage.
Anger can have devastating repercussions for relationships, so it’s vital that partners take immediate steps to address and discuss it when they notice that it arises. By doing this, couples may become more accepting of each other.
At this juncture, it’s imperative that communication and conflict resolution techniques be developed to promote more productive interactions while preventing any future issues from arising. Doing this will increase interaction while simultaneously helping prevent unexpected incidents from arising in the future.
How you can save your love life?
If these skills alone are insufficient to resolve conflicts effectively, professional counseling may also prove invaluable. An experienced therapist can quickly asses what’s causing any issue and offer solutions.
Prior to making such an important decision, however, it is advisable to carefully assess all potential advantages and disadvantages associated with divorce before coming to any definitive conclusions.
Marriage is the cornerstone of society and one of the most complex relationships to navigate throughout one’s lifetime, each partner experiencing its ups and downs which put stress and strain on their bond.
Marriage is an intimate union between two partners who rely on one another; any issues affecting either partner should be raised directly and promptly. Sometimes issues can be handled through patience and persistence while in other instances professional intervention may be required.
Divorce can present many obstacles for relationships, from emotional strain to financial strain. But all can be navigated effectively if both partners work collaboratively towards finding solutions and making necessary changes together.
Reminding couples that each partner has physical, emotional, and psychological needs that must be fulfilled can have a dramatic impact on how they interact; any unfulfilled needs could thwart its success as an institution.
Tips to get solution for love problems
Communication is at the core of every relationship, including between partners. Recognizing someone else’s feelings demonstrates thoughtfulness while failing to do so can leave them feeling isolated or neglected.
When your partner is experiencing issues, it is vital that you listen without making assumptions or passing judgment. Although this can be challenging at times, taking this approach will ensure your relationship continues over time.
Once you understand what your spouse has shared with you, take action to address their concern and demonstrate its benefits – this will only deepen and enrich your relationship.
Negotiations and compromise can help both parties come to an amicable agreement that preserves relationships while preventing further disputes from emerging.
If your marriage is having difficulties, do not feel intimidated to seek professional guidance and advice. These professionals can assist in rebuilding it by understanding individual needs as well as teaching skills that strengthen interactions between partners.
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Vashikaran (or mind control) is an ancient technique which harnesses mental power to influence people positively and bring about transformation, providing much-needed relief during life’s more trying moments.
Vedic Astrology has long been practiced in India, while Mantra and Yantra therapies use specific mantras and yantras to assist individuals during difficult periods in their lives.
If your relationship is suffering, vashikaran could provide the ideal way to reignite its spark and make life overall happier. Vashikaran offers effective means of solving romance-related issues while making overall life more pleasant.
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As part of vashikaran, only ethical means should be employed when seeking to influence others; any unethical actions could have devastating repercussions.
When relationships experience difficulty, vashikaran services could offer invaluable guidance and solutions during these trying moments. A specialist could offer invaluable support during this difficult period.
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Hiring a vashikaran specialist can bring many advantages, including their ability to quickly address and resolve issues more rapidly than can otherwise be accomplished on your own. Faster results!
Astrology Can Assist With Resolving Love Issues –
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Love problems can be an ever-present threat to modern relationships, threatening their health and straining them to breaking point. Disagreements or communication breakdowns may have devastating repercussions for both partners; when your chemistry begins to quickly wane, seeking assistance from an astrologer could provide quick Love Problem Solution that address any potential sources of conflict quickly and efficiently.
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At some point in their lives, most humans will encounter love. While initial encounters may primarily include parental bonds, over time this experience can grow to encompass extended family, friends and romantic entanglements between individuals.
Love can bring many benefits, yet many couples experience difficulty within their relationship due to cheating, depression and disenchantment – which all pose significant threats to its survival.
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If your relationship is experiencing difficulties, our Astrologer offers online love problem solution s astrology services which may offer quick solutions tailored specifically for each party involved – helping them quickly come back together and experience an exhilarating love life again.
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Astrology can provide invaluable assistance for managing life’s difficulties and finding love.
Astrology may help you discover your soulmate! Love may feel out of reach at times; however, with the aid of astrology you could soon meet that special someone!
Love Problem Solution ( https://loveproblemsolution.org /) Over time, these steps will make life simpler while strengthening relationships and keeping them vibrantly alive.
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People looking for quick and cost-effective solutions to their relationship woes must act swiftly or risk becoming mired in negative circumstances for too long.
There are various strategies you can employ without incurring financial costs to address love problems, including consulting an astrologer or practising vashikaran techniques; seeking professional love spell advice; or consulting someone about vashikaran matters. All these avenues will prove successful when it comes to solving them effectively.
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If you and your partner are experiencing issues in their relationship, contacting an astrologist might be exactly what’s needed to restore peace and restore happiness into daily life. Astrologers specialize in finding solutions for such matters so as to restore happiness back into daily living.
Love Problem Solution Astrology is an effective means for recognizing and mitigating any astrological influences which contribute to issues, while an astrologer will analyze each birth chart involved to gain more insight into why certain problems have surfaced.
Professional advice can be an effective means of revitalizing and relieving any conflict in your relationship, creating a deeper and longer-term love connection that’s satisfying on all fronts.
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At some point in their lifetime, every individual experiences love in some capacity – whether through family ties or shared activities.
Love is an irrepressible force that changes lives permanently.
Relationship problems can be an enormous source of tension and dissatisfaction in relationships, from disagreements and tension to feeling as though our partnerships do not offer enough fulfillment.
Personal issues can put strains in romantic relationships and prevent any proposals of marriage from taking place.
Unfortunately, these problems do have solutions; one option could be using astrology to address problems in your life and assist on your journey.
Consult an Love Problem Solution astrologer for advice on any love issues you may be having.
Consulting an experienced love problem solution astrologer to address issues in your relationships or life can be very helpful. They provide expert advice and solutions for issues related to marriage or relationships which might be hindering progression.
Love problem solution Astrologers who specialize in love problem solutions can be invaluable when it comes to finding your ideal partner. By studying both your horoscope and birth chart, these astrologers can identify who would make an ideal partner as well as provide tips as to when or where you may meet someone!
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Professional advice can be invaluable when it comes to understanding whether working with individuals from opposing zodiacs may create any conflicts or headaches for you, potentially saving you from unnecessary hassle.
Solution of love problems Astrology is the study of celestial bodies and their influences upon individuals to predict future events or remove any negative influences in our lives.
Love can be both rewarding and difficult; problems usually stemming from issues related to ego or disloyalty among partners; miscommunication leading to disagreements that lead to breakups or worse – heartbreak.
Love Problem Solution Astrologer Experts Are Powerful Tools for Resolving Relationship Woes Astrologers can be powerful ally when it comes to helping couples resolve relationship difficulties by providing professional analysis that pinpoints any areas of concern and suggests potential solutions.
Love Problem Solution Astrological remedies may provide effective means for helping to ease love-related challenges and bring more joy into your life, such as chanting mantras or engaging in rituals to address them.
Relationships or marriages need careful planning in order to thrive successfully, and an astrologer specializing in love problem solutions could offer invaluable advice suited specifically to you if any obstacles appear along the way.
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People experiencing difficulties in their romantic relationships now have access to professional solutions, which can quickly rectify matters so they can return to living life fully and enjoying every minute.
Astrologers provide expert phone solutions that can quickly address issues and ease anxiety, leading to a happier, more satisfying lifestyle for you and your loved ones.
Astrology provides solutions for love-related concerns free of charge.
Love can be both thrilling and heartbreaking; relationship hurdles often present themselves as barriers, from personal issues or attitudes that exist within relationships to disloyalty between partners leading to breakups that may have lasting repercussions for all involved.
Consultation with an experienced Solution of love problem astrologer is often extremely effective in quickly and smoothly solving issues related to love relationships more quickly and smoothly. Astrology offers solutions covering every aspect of human relationships.
Love Problem Solution Astrology specialists not only offer services for those interested in practicing this ancient art, but can be invaluable allies when planning a wedding and seeking long-term success. Their advice or support may prove especially helpful when facing opposition from family and friends regarding one’s plans.
Astrologers offer guidance and comforting advice regarding love life issues.
Counselors provide invaluable guidance and solutions that can prevent similar scenarios from reoccurring, as well as strategies for distancing oneself from an ex-partner and finding peace again.
Astrology can provide an effective solution for love life problems and make life simpler. A skilled astrologer will use birth charts to detect any planet positions or influences which could be impeding progress in this aspect of your life.
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Astrologers differ significantly in their interpretations and predictions, making it essential to find one you trust for optimal results. A qualified astrologer can offer solutions tailored specifically to both your true self and nature’s plan for romantic relationships.
Are You Struggling with Love Issues? Love Problem Solution Astrologer Guru Ji can offer expert assistance in solving romantic difficulties. His decades-long experience have proven invaluable for individuals and couples seeking his guidance in order to overcome romantic hurdles.
Break Free From Rituals With Apps Breaking free from routine can bring excitement and passion into any relationship, with apps specifically tailored to facilitate this goal. When selecting apps that meet both parties needs, ensure both parties review all resources available as well as any necessary modifications before moving onto Phase Two: recruiting their partner!
Relationship Problem Solution
Relationship and marriage issues can be emotionally draining and disturbing, interfering with your peace. To effectively manage them, seek advice from an experienced love problem specialist who will assess any outstanding issues to bring harmony back into your life.
Love issues often stem from incompatibilities between zodiac signs, with those whose zodiacs do not coincide being particularly vulnerable during relationships and marriage negotiations. To minimize roadblocks to romance or negotiations it would be advisable to learn about both yours and any potential partner’s zodiac before beginning romance discussions or negotiations.
Zodiac sign analysis provides an effective means of gaining deeper insights into yourself and prospective partners’ personalities, compatibilities and long-term compatibilities – knowledge which may prove crucial when making crucial career decisions or searching for companions in life.
Financial matters can often cause marital discord; both partners should understand their current financial standing as well as any emergency plans they have in place for unexpected expenses that need immediate handling.
Consult a love problem solution astrologer in order to develop strategies that address financial concerns in your relationship or marriage, such as raising enough money for medical treatment of anyone within your family who becomes sick or injured.
Finding your ideal partner involves taking into account both personal needs and desires as well as personality traits which bring energy or calm to relationships, or those which elicit strong emotions when selecting potential mates.
How to find best astrologer for love problem?
Love Problem Solution Astrologers specialize in reading and analyzing personal data to provide valuable insight into personality traits, strengths and weaknesses, comparative advantages and limitations, potential love matches and solutions to major life concerns.
Rehashing The Past When terminating a relationship, try not to revisit past incidents as doing so could create an emotionally charged environment and make transition more challenging.
Informing family and friends of your situation to offer assistance during this trying time can also be extremely helpful; even if they can’t directly be there for support, having a plan in place in case they can’t will likely reduce stress significantly.
Consulting Love Problem Solution experts, such as an astrologer, is one of the best ways to speed and smooth over the divorce process. These professionals will customize a plan specifically tailored to meet your circumstances and needs.
Phone-based love problem solutions can make the transition out of an old relationship less taxing and difficult, without creating additional strain or tension. When making decisions that affect both partners, consider their interests and feelings when making requests or statements to them. An astrologer could prove invaluable as you move through this phase, now that things have visibly altered between you!
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Top Ten FAQs about Astrological Solutions to Love Issues (Lover Problem Solutions Astrologer).
Life revolves around relationships; yet maintaining healthy ones has become increasingly challenging over time.
If your relationship is facing difficulty, consulting an online love problem solution astrologer could provide effective solutions. They will assess your birth chart and suggest remedies from ancient traditions to address any potential issues within it.
1. Which Love Problem Solution Astrologer Can Best Resolve Love Issues?
Love can present many obstacles, ranging from relationship troubles and miscommunication issues to disagreements between partners.
2. Can Astrologers Provide Assistance for Resolving Marriage Concerns?
Our Love Problem Solution Astrologer has long provided effective astrological solutions to marriage-related problems with honesty and integrity for over thirty years, earning his place among the premier advisors of accurate astrological advice regarding relationships. His unique combination of empathy, problem solving skills, communication abilities and empathy make him one of the premier sources for reliable advice regarding these matters.
3. Which Love Problem Solution Astrologer Is Best Suited to Resolving Love Issues?
Love can provide strength, comfort and support during times of difficulty.
4. Which Love Problem Solution Astrologer Is Appropriate for Addressing Relationship Issues?
Are You Struggling in Your Relationship? Consulting With An Astrologer May Provide Solutions To Avoid Divorce Or Separation
6. Who Is an Appropriate Astrologer for Financial Matters?
Financial issues can be one of the primary sources of stress in our lives. Money must cover both daily expenses as well as long-term goals such as healthcare, education, and homeownership.
7. What Love Problem Solution Astrologer Is Best Suited to Address Family Issues?
Astrologers can be invaluable resources for families trying to resolve household conflicts effectively. By providing insight into contributing factors and offering advice for preventing similar events from reoccurring in the future, professional astrologers provide families with invaluable support in mitigating family disputes.
8. Who Is an Accredited Astrologer for Career Issues?
Career problems can be emotionally taxing. A person may feel powerless over their working conditions and be powerless to change them.
9. Do Love Problem Solution Astrologers Provide Advice Regarding Health-Related Issues?
Health is of utmost importance and individuals seek to live lives that prioritize overall well-being while strengthening bodies.
10. Which Love Problem Solution Astrologer Is Appropriate for Legal Matters?
Court battles can be emotionally, physically, and financially draining for all parties involved; draining resources away from those affected while providing additional sources of irritability no matter the duration. Winning may even intensify these emotions while prolonging them further.
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How Fast Should Your Company Really Grow?
- Gary P. Pisano
Growth—in revenues and profits—is the yardstick by which the competitive fitness and health of organizations is measured. Consistent profitable growth is thus a near universal goal for leaders—and an elusive one.
To achieve that goal, companies need a growth strategy that encompasses three related sets of decisions: how fast to grow, where to seek new sources of demand, and how to develop the financial, human, and organizational capabilities needed to grow. This article offers a framework for examining the critical interdependencies of those decisions in the context of a company’s overall business strategy, its capabilities and culture, and external market dynamics.
Why leaders should take a strategic perspective
Idea in Brief
Sustained profitable growth is a nearly universal corporate goal, but it is an elusive one. Empirical research suggests that when inflation is taken into account, most companies barely grow at all.
While external factors play a role, most companies’ growth problems are self-inflicted: Too many firms approach growth in a highly reactive, opportunistic manner.
To grow profitably over the long term, companies need a strategy that addresses three key decisions: how fast to grow (rate of growth); where to seek new sources of demand (direction of growth); and how to amass the resources needed to grow (method of growth).
Perhaps no issue attracts more senior leadership attention than growth does. And for good reason. Growth—in revenues and profits—is the yardstick by which we tend to measure the competitive fitness and health of companies and determine the quality and compensation of its management. Analysts, investors, and boards pepper CEOs about growth prospects to get insight into stock prices. Employees are attracted to faster-growing companies because they offer better opportunities for advancement, higher pay, and greater job security. Suppliers prefer faster-growing customers because working with them improves their own growth prospects. Given the choice, most companies and their stakeholders would choose faster growth over slower growth.
Five elements can move you beyond episodic success.
- Gary P. Pisano is the Harry E. Figgie Jr. Professor of Business Administration at Harvard Business School and the author of Creative Construction: The DNA of Sustained Innovation (PublicAffairs, 2019).