Profitable, fast-growing companies like Microsoft and Home Depot are the darlings of Wall Street and the envy of their competitors. But what factors determine their success? And what can managers do to emulate such stellar businesses within their own organizations?

To answer these questions, we screened the 9,450 publicly listed companies on the Compustat database for those that have grown dramatically over the past ten years. We also analyzed individual businesses such as Microsoft Windows, Medco’s pharmacy benefits management (PBM) program, Lotus Notes, Apple Newton, Hughes DirecTV, Enron Capital and Trade Resources, and Midland Bank’s First Direct.

We discovered that highly profitable fast growth is not confined to just a couple of firms. Between 1984 and 1993, 41 publicly listed companies focusing on one major line of business managed to increase their revenues and operating income by 20 percent per year. They created over 300,000 jobs and added $110 billion in market value during this period of sustained fast growth. These "tigers" are the swiftest, most powerful enterprises in the global marketplace.

New games

Our case studies reveal that these tigers have pursued "new game" strategies. First, they provide radically...