Being an Old Organization Can Still Be a Good Thing

Older companies have weathered numerous tumultuous business cycles and other crises and, as a result, have some inherent smarts. Accenture performed research on 577 multinational companies from non-tech sectors. In this group of firms, all established before 2000, it found 69 companies that stood out for their strong growth in the digital age. A closer look revealed that each has developed the confidence to look dispassionately at disruption—even digital disruption. As a result, each has cultivated an immunity to market pressure. These companies invest prudently rather than impulsively follow trends. How can other mature firms turn their age into an advantage? The confidence and prudence displayed by the growing firms in the study stem from two behaviours born of experience. First, these companies keep investing in their core businesses—even when it would be tempting to let them coast. Second, older companies know how to pace themselves. If the time is not right, they do not sprint into new business activities, even if competitors do. Being aware of competition and context is paramount to marketplace success. But trusting your company’s strengths and teasing out the overarching lessons it has learned over the years can make an even bigger difference.