TradeBriefs Editorial

From the Editor's Desk

Mastering the building blocks of strategy

Left unchecked, market forces continually conspire to deplete profits. Powerful business strategies can counteract those tendencies, but good strategy is difficult to formulate. Indeed, the latest McKinsey research (see "The strategic yardstick you can't afford to ignore.") finds that a very small number of companies create most economic profit. The research also shows that a significant number of good companies outperform even in so-called bad industries, where the average economic profit is less than the market average.

How do they do it? In other words, where do powerful strategies come from? Sometimes it's luck, or good timing, or a stroke of inspiration. In our experience, it's also possible to load the dice in favor of developing good strategies by focusing on the core building blocks that often get overlooked. One is the need to gain agreement - before creating strategy - on the essential decisions and the criteria for making them. Another is to ensure that the company is prepared and willing to act on a strategy once it is adopted. Too much of what passes for strategy development, we find, consists of hurried efforts that skip one or more of the essentials. The resulting strategies are often flawed from the start.

Continued here


TradeBriefs: What's important, not just what's popular!

Advertisers of the day

Kellogg ExecEd: Kellogg Digital Transformation Program | Network with Global Peers | Apply Now

Emeritus : PG Diploma in Digital Marketing Strategies in collaboration with Columbia Business School Executive Education | Apply

Our advertisers help fund the daily operations of TradeBriefs. We request you to accept our promotional emails.

You are here: Home Opinion Mastering the building blocks of strategy