Finding elegance in Regular Growth

A warm spring afternoon. The roar of engines fills the air as vintage cars set off, not in a high-speed dash to the finish, but to master consistency, control, and endurance. Unlike Formula 1 where victory belongs to the fastest, in a regularity rally, it is the steady, strategic drivers who come out on top. Push too hard, and you risk breaking down. Hold back too much, and you lose momentum. 

The key? Finding the rhythm that keeps you moving forward without burning out. 

This same principle holds a powerful lesson for business growth. What if the companies chasing hypergrowth at all costs are playing the wrong game? While hypergrowth companies grab headlines, there is a compelling case for a more measured approach that prioritizes consistency over speed. This is the essence of the Regular Growth Theory (RGT), a strategy which is built on measured, resilient progress, rather than on reckless acceleration, ensuring that businesses don’t just rise fast but endure. 

The elegance of Regular Growth

When discussing the success of companies, the allure of astronomical growth rates often captivates stakeholders, investors, and the public alike. While the idea of supercharged growth in record time has become a gold standard of success, they often mask an inconvenient reality: dramatic peaks are frequently followed by precipitous drops. In contrast, regular growth holds far greater merit for long-term corporate sustainability. These businesses do not just rise fast, they last. 

Benefits of regularity

1. Creating predictability for employees, customers, and investors. Consider Procter & Gamble, which has thrived through incremental expansion rather than chasing aggressive acquisitions, insulating itself from economic shocks and building lasting consumer trust. 
2. Sustainability and maintaining quality without shortcuts. Unlike hypergrowth models that often force shortcuts such as by outsourcing risks and overproduction, companies like Patagonia have prioritized sustainable sourcing and ethical labor practices, enhancing customer loyalty and profitability. 
3. Embracing financial prudence. Hypergrowth firms frequently overextend resources, accumulate debt, and chase speculative opportunities. Regular-growth companies expand based on real demand, ensuring sustainable cash flow and long-term profitability. Berkshire Hathaway exemplifies this approach, prioritizing long-term value over short-term speculation. 
4. Cultivating adaptability. Regular growth gives businesses space to absorb feedback and refine operations. A prime example is Toyota’s Kaizen philosophy, which champions incremental, ongoing improvements rather than disruptive overhauls. 

Redefining success: a new growth paradigm

The Regular Growth Theory introduces a paradigm shift, redefining success in established companies through controlled rather than absolute targets. While appealing to long-term thinkers, it also engages short-term thinkers by tying status and promotions to stability, ensuring incentives cater to both perspectives while prioritizing sustainability over volatility. 

To embed regularity into corporate structures, companies must shift from traditional performance indicators to metrics that reward steady, controlled growth. A Regularity-Based Balanced Scorecard would track: 

• Balanced incentives: Penalizing both excessive expansion and insufficient progress, rewarding managers for maintaining a steady percentage increase rather than volatile spikes. 
• Stable targeted profit margins: Prioritizing profitability consistency over unsustainable revenue surges. The objective is not continuous margin expansion but maintaining a balanced and predictable level of profitability. If margins fall below target, corrective actions should be taken to restore target; if they exceed the optimal range, adjustments should be made to sustain balance rather than pursue unchecked increases. This ensures that profitability remains steady and controlled, avoiding the risks of both excessive contraction and unsustainable expansion. 
• Customer retention and satisfaction: Valuing long-term relationships over rapid acquisition. 

Introducing regularity competitions

Taking inspiration from classic car rallies, companies can implement internal “Regularity Competitions,” where success is not about hitting the highest numbers but about maintaining a steady, predictable trajectory. Just as regularity rally drivers are rewarded for maintaining a consistent pace at specific checkpoints along the route, corporate leaders would be recognized for delivering uniform, stable growth over time. 

By implementing observation points at regular intervals, participants would be evaluated on how closely they adhere to predefined performance targets at each milestone. The more consistent they remain over a set period—just like regularity rally drivers maintaining precision every hundred miles—the higher their score. 

By redefining success through regularity-based metrics, companies can move beyond the volatility of hypergrowth, ensuring resilient, sustainable expansion that benefits both individuals and organizations. 

Addressing practical challenges

While embracing regularity sounds appealing in theory, implementation faces real obstacles. Human nature often prioritizes immediate gains. Many executives and employees prefer immediate rewards due to future uncertainty. One way to bridge this gap is to tie significant portions of compensation and career advancement to meeting consistency-based milestones. When long-term stability is directly linked to financial and professional security, the fear of losing these rewards can outweigh the temptation of quick wins. Deferred bonus structures tied to multi-year performance metrics or equity programs with extended vesting periods not only incentivize disciplined growth but also help attract talent that shares the same values of steady progress. 

Another challenge is whether companies that prioritize stability over rapid expansion can survive against hypergrowth-driven competitors. In the short term, hype-based firms may gain an advantage, attracting investors and capturing market share through aggressive scaling and inflated valuations. However, these companies are also the most vulnerable to market downturns, debt crises, and operational inefficiencies—which ultimately cause them to collapse. Rather than trying to outpace them at their own game, regular-growth companies must simply outlast them. When financial bubbles burst or economic conditions shift, overleveraged firms face severe consequences. Toyota is a prime example: while Ford and other automakers rushed to scale during boom periods, Toyota prioritized controlled expansion and efficiency. When the oil crisis hit, competitors crumbled under debt, while Toyota, having grown sustainably, remained resilient. 

Beyond survival, regular-growth companies can form a new category of investment, appealing to investors who seek low-risk, stable returns, and predictable dividends. Over time, markets will recognize that companies prioritizing regularity over reckless expansion are the true long-term winners. 

Choosing the right race

Different races cater to different tastes. Some revel in the elegance of vintage car championships, where precision and heritage take center stage. Others thrive in the high-stakes world of Formula 1, where raw speed and cutting-edge technology reign supreme. 

Business is no different. The Regular Growth Theory (RGT) isn’t meant for startups scrambling to carve out their place in the game; it applies to established companies—those that have already made their mark and now seek to sustain and refine their success. Industries like food retail and luxury embody this philosophy. After all, opening 20 restaurants instead of 10 isn’t always a sign of progress; it’s a test of endurance, consistency, and strategic foresight. Formula 1 will always have its place. In sectors like AI and high-tech, the game isn’t about steady progress but rapid scaling, where speed is the only currency that matters. But for industries where longevity is key, it’s not about racing to the next milestone; it’s about setting a pace that ensures they stay in the race for decades to come.