McKinsey analyzed 61 companies that achieved superior growth compared to their competitors during the challenges of COVID, rising inflation, and workforce disruptions. These organizations shared several key characteristics.

Walmart’s Surprising Advertising Success

Few people realize that Walmart’s advertising division contributed nearly 30% of the company’s operating profit last year. In fact, many are unaware that Walmart even operates an advertising arm.

Insights from a New McKinsey Report

This eye-opening detail highlights the findings of a recent McKinsey report released today. The study, titled Inspired for business growth: How five companies beat the market, explores how major corporations manage to achieve remarkable growth in both revenue and profit—a feat that is far from simple.

Companies That Outperformed During Challenging Times

According to the research, 61 organizations surpassed their industry peers between 2019 and 2024. Notable examples include the financial powerhouse JPMorgan Chase & Co., insurance leader Progressive, Dutch chip equipment manufacturer ASML, and construction supplier Builder FirstSource. These years were marked by the COVID-19 pandemic, rising inflation, and labor shortages. Despite these obstacles, these companies outpaced their competitors, achieving revenue growth rates five percentage points higher and annual profitability seven points higher on average. Ultimately, this translated into a five-point advantage in total shareholder returns.

What Sets Top Performers Apart?

McKinsey’s analysis revealed three key traits shared by these high-achieving companies:

• Consistent investment in growth, regardless of economic conditions. While it’s easy to prioritize growth when resources are plentiful, these organizations continue to invest even when budgets are tight.
• Diversification of growth strategies. Rather than relying on a single avenue, these companies develop multiple growth engines, often expanding beyond their core business while leveraging existing strengths.
• Leveraging technology for speed. In a world where speed is crucial and AI is increasingly used to gain an edge, these companies use technology to accelerate their progress.

Walmart Connect: A Case Study in Innovation

Walmart’s internal advertising platform, Walmart Connect, enables sellers to promote products both online and in stores by utilizing the company’s vast customer data. This initiative demonstrates how a large corporation can continue to grow and boost profits by creatively using its existing resources.

Balancing Core Business and New Ventures

Finding the right mix between strengthening the core business and launching new initiatives is essential, according to McKinsey senior partner Greg Kelly. He explained to Fortune, “If you don’t expand in your main market and core category, you’re likely to fall behind. Growth in these areas is necessary, but not enough on its own. Having several growth engines greatly increases your chances of outperforming the competition.”

The Importance of Investing Through Uncertainty

The pandemic underscored the value of maintaining investment during turbulent times. “Everyone claims to prioritize growth,” Kelly noted, “but sustaining investment during crises like COVID, which had a profound impact on businesses, is challenging. Only about a third managed to do so.”

Conviction Drives Success

The study concludes that what truly distinguishes growth leaders is not superior prediction, but stronger conviction. These companies invest when uncertainty is at its peak, focus on building capabilities rather than chasing trends, and approach growth as a process to be engineered, not merely hoped for.

This article was first published on Fortune.com.