About one-third of US companies reallocate no more than 1 percent of their resources from year to year. Whether through bias, office politics, or plain old inertia, they simply roll this year’s plan into next year. It should, by now, go without saying that this is a terrible starting position from which to expect transformative change. Companies can escape the cycle by creating target portfolios, adopting decision rules, and creating simple processes to break free of inertia.
Authors: Chris Bradley, Marc de Jong, Wesley Walden
Source: McKinsey Quarterly
Subjects: Finance, Management