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Why do good companies set bad strategies? |
Why do good companies set bad strategies?
Errors in company strategy are often self-inflicted
A singular focus on shareholder value is the ”Bermuda Triangle” of strategy, according to Michael E. Porter, director of Harvard's Institute for Strategy and Competitiveness.This was one of the takeaways from a recent talk by Porter – titled ”Why Do Good Managers Set Bad Strategies?” – offered as part of Wharton's SEI Center Distinguished Lecture Series During his remarks, Porter stressed that managers get into trouble when they attempt to compete head-on with other companies. No one wins that kind of struggle, he said. Instead, managers need to develop a clear strategy around their company's unique place in the market. Porter´s core field is competition and company strategy. He is generally recognized as the father of the modern strategy field, and his ideas are taught in virtually every business school in the world. He has also re-defined thinking about competitivenes,
economic development, environmental policy, and the role of
corporations in society.
When Porter started out studying strategy, he believed most strategic errors were caused by external factors, such as
consumer trends or technological change. ”But I have come to the realization after 25 to 30 years that many, if not most, strategic errors come from within. The company does it to itself.”
Hivatkozás a cikkre:
Why do good companies set bad strategies? Errors in company strategy are often self-inflicted. CEO Magazin 2009. év, X. évfolyam 3. szám. 42-44. pp
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