To grow companies and thus raise the companies’ stock value, A.T. Kearney has developed the Value Building Growth method. Central levers of this method are revenue growth and value increase. They form a matrix with four quadrants in which companies of a sector can be positioned according to their stock market performance.

The position within the matrix gives a rough orientation of the relative competitiveness of a company and the strategic and operational improvement requirements. Accordingly, the position in the matrix gives four major thrusts.

Simple Growers face the question as to further focus core activities and competencies and develop them above average. The goal of Profit Seekers is to build on realized profits. Underperformers have to undergo a substantial process and organizational restructuring and portfolio optimization. For Value Growers the challenge is the sustainability of success and the preparation of the next step for growth.

YukosSibneft and LUKOIL are identified as Value Growers from 1997 until 2002. However, this should be seen as an honoring of both companies’ activities in the near past. For both it is now crucial to carefully evaluate their next steps in the market: compared to their global competitors both are still small players in the game.

Other East European players like Gazprom, Orlen or MOL have under-performed in terms of value and revenue growth. Restructuring their businesses and an even clearer business focus is the key message for these players.