Summary:In a recent study, McKinsey assessed the strategic capabilities of 400 companies to determine why some companies outperform their peers. We review the findings and share what CFIs can learn from them.
In cycling, a power curve illustrates the relationship between power and endurance by plotting an athlete’s maximum average power over different time intervals — e.g., 5-15 seconds, 30 seconds to 2 minutes, 60 minutes, or several hours. It gives cyclists unique insights into their strengths and weaknesses, allowing them to tailor their training to improve overall performance.Mapping the economic profit of thousands of the world’s largest companies (revenues over $1B) also reveals a power curve. This is known as the economic profit power curve, in which the top 20% capture nearly 90% of the total economic surplus, the bottom 20% destroy a comparable amount of value, and the middle tier delivers minimal — if any — net economic gain. Over the past 20 years, the gap between the top and bottom quintiles has doubled. Strategic Capabilities Are Key to SuccessTo understand how an organization’s position on the power curve relates to its strategic capabilities, McKinsey conducted a study of over 400 companies from different industries, looking at what differentiates the top quintile, or “strategy champions,” from the bottom quintile, or “stragglers”. McKinsey plotted the companies’ performance against 12 key strategic capabilities across three phases — design, mobilize, and execute — and found that strategy champions ranked higher in all of these. Crucially, the largest gap between champions and stragglers was in the mobilization phase, which is often overlooked. It is the pivotal bridge between design and execution, a phase in which strategic decisions are turned into organizational readiness, allowing for successful execution.image.png118.47 KB Source: McKinsey & Co
5 Lessons from Strategy ChampionsCommunity financial institutions (CFIs) can draw several lessons from McKinsey’s research to strengthen their strategic planning and execution processes.
Make strategy an ongoing discipline. The impact of a good or bad strategy has never been greater. Strategy champions integrate strategic thinking into the daily rhythm of the organization, rather than limiting themselves to a yearly exercise. CFIs should conduct regular reviews of performance against key metrics and reassess their direction in light of industry and market trends that impact the institution the most, such as evolving customer expectations, economic shifts, or interest rate changes.
Focus on a few bold, strategic moves. Strategy champions excel at committing to a bold strategy and doing so at speed, before others have established their own response. Given their constrained resources, CFIs should focus on selected high-impact initiatives, leveraging their strengths to achieve maximum results. For example, they might double down on personalized service by blending high-touch relationships with a seamless digital experience.
Align leadership and culture. Strategy champions stand out for their ability to build a shared understanding of the challenges they face, allowing them to collectively focus on the best path forward. To do this for your institution, consider hosting cross-functional strategy workshops with branch managers, lending officers, and digital teams to ensure everyone knows the “why” behind strategic goals. Regularly check in with leadership to reinforce priorities, celebrate wins, and keep everyone aligned and focused.
Translate vision into action. The research shows that mobilization is key. This means ensuring that employees are sufficiently empowered, resources are appropriately allocated, and, crucially, that strategies are broken into discreet and actionable initiatives. CFIs should assign strategy leads to each initiative and set measurable performance metrics that are tracked on a regular basis to ensure they continue to fit the overall strategy, and that projects don’t get sidetracked.
Promote adaptability. Strategy champions also stand out for their ability to adapt to uncertainty, which is particularly relevant given that the World Uncertainty Index reached a record high in June 2025. In this climate, these champions adjust their strategies quickly, prioritizing speed and alignment over perfection. To build adaptability into your institution, invest in scalable, flexible technology, strengthen scenario planning and risk management, stay close to customers to understand emerging needs, and engage with regulators and industry groups.
McKinsey’s research shows there is a link between strong strategy capabilities and the ability to create value and get ahead of the competition. Although all 12 strategic capabilities contribute to the success of strategy champions, mobilization is key. CFIs can adapt some of these findings to improve their strategic process by making strategy and ongoing discipline, focusing on a few, bold strategic moves, aligning leadership and culture, translating vision into action, and incorporating flexibility into their organization.
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