Growth is harder to find in an environment without macroeconomic tailwinds. It’s amazing how often executives rush to the conclusion that their problems are simply a function of a decline in their core markets. There’s bound to be greener grass somewhere, isn’t there? Actually, no. The idea that some industries are superior is illusory. The data does not support it. Sure, some industries outperform others for a time, but the differences across industries are far smaller than most people think. By contrast, the variation in returns among companies within the same industry is huge.

The message for corporate leaders is clear: Shifting into a hot, new industry probably won’t revive growth. Given a choice—and they have a choice—they should focus instead on building the capabilities to win in their home industry.

It’s amazing how often executives who are looking for growth opportunities for their companies conclude that they simply need to find a “better” industry to compete in. Our analysis of shareholder returns of more than 6,000 companies in 65 industries globally and over a 10-year period, however, shows that the idea that some industries are superior does not hold true. The differences in performance across industries are far smaller than the variation in returns among companies within the same industry. Top performers in just about every industry easily outperform the average companies of the “hottest” industries.

Full article (PDF 3 pages):
www.booz.com/media/file/HBR_The-Grass-Isnt-Greener.pdf

Additional resources:
www.booz.com/global/home/what_we_do/services/enterprise_strategy/es_thought_leadership/the-grass-is-not-greener