Growing When Your Industry Doesn’t

Success and profits flow to companies with uniquely valuable market propositions—regardless of their sector.

Ken Favaro, Evan Hirsh and Kasturi Rangan

Any seasoned strategist knows that strategy is not just sloganeering. It is the series of choices you make on where to play and how to win to maximize long-term value. Execution is producing results in the context of those choices. Therefore, you cannot have good execution without having good strategy.

Strategy: An Executive’s Definition

What is a business strategy? It is the result of choices made to maximize long-term value.

Love Your “Dogs”

Conventional wisdom dictates that businesses invest in their best performing units, and sell, shutter, or siphon off resources from their worst performers. But what if the conventional thinking is wrong? Leading behavioral economists now believe that investing in your “dogs,” or poor performing units, could bring far better returns than investing in your “stars,” or best performing units. It’s a counterintuitive strategy that could lead … [ Read more ]