Smart Growth 2.0

Twelve years ago, Korn Ferry published a white paper on “Smart Growth.” At that time, the Chinese market had just transitioned into a medium-high growth phase after a long period of rapid growth, with demand slowing and competition intensifying.

The whitepaper pointed out that the business models and leadership styles formed in the previously favorable environment were no longer suitable for the new economic situation. In response to these market changes, Korn Ferry introduced the concept of Smart Growth for corporate management; based on this, we launched a new leadership model that emphasizes measuring and cultivating leadership through two dimensions: agility and maturity.

More than a decade later, and China's economic environment has once again undergone dramatic changes. Today, business leaders face an unfamiliar and more complex financial and competitive environment. How should companies navigate this new reality? And what kind of leadership is required to succeed?

In July 2024, Korn Ferry conducted a series of in-depth interviews to examine and compare the practices of companies that have performed very differently in this new environment.

We found that the companies that have continued to perform well during periods of market turbulence demonstrated two key capabilities: resilience and innovation. These companies have moved away from the trend-riding, opportunistic approach of a few years ago. Instead, they have carefully cultivated their core competencies and business ecosystems around their corporate purpose and inspired resilience and innovation through visionary and collaborative efforts.

Based on these insights, Korn Ferry has constructed the new leadership model and ideas of human resource management needed to shape these organizational capabilities, resulting in the main framework of Smart Growth 2.0.

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