Chinese companies need to focus on sustainable, profitable growth: Acccenture

27 August 2007

New research by consulting firm Accenture has revealed the need for Chinese companies to focus on sustainable, profitable growth to achieve high performance and close the gap with the best global companies.

Accenture''s first ''high performance business" research reveals that the most successful Chinese companies blend global best practices with unique Chinese practices to outperform their local competitors, be globally competitive and achieve higher levels of performance.

The High Performance Business in China 2007 research marks the first time that Accenture has applied its proprietary high performance business methodology to a single country market. Begun in 2003, Accenture''s high performance business research initiative entails in-depth analyses of more than 6,000 companies globally.

Through the research, Accenture has identified more than 500 "high performers", companies that successfully balance current needs with future opportunities; consistently outperform their peers in revenue growth, profitability and total returns to shareholders; and sustain their superiority across time, business cycles, industry disruptions and changes in leadership.

The research on Chinese companies, begun late last year, covers nearly 200 publicly traded companies incorporated in Mainland China across 13 industries. Based on detailed financial analyses and surveys with a number of Chinese executives, the research examines characteristics and traits of more than 25 Chinese high performers.

The research revealed that the success of Chinese high performers is built upon a blend of global best practices and unique Chinese approaches within Accenture''s three building blocks of high performance: market focus and position (knowing where and when to compete); distinctive capabilities (a company''s differentiated approach to the way it builds and leverages its capabilities); and performance anatomy (the underlying cultural characteristics and mindsets that enable a company to out-execute its competitors regardless of what strategies the company chooses).