Reality Check
"Survival is optional."
– W. Edwards Deming
Strategy reality check
- Business Risk -- Poor strategy is the single greatest risk to a business organization.
- Value Loss -- Poorly formed strategy is the cause of the greatest loss of shareholder value – more than operational and compliance reasons combined.
- Competitive Advantage -- Few businesses have a competitive advantage.
- Value Creation -- Most companies do not consistently create value – earning at or below their cost of capital.
- Implementation -- Strategic plans are rarely implemented.
- Strategy Discipline -- Strategy development typically is not subject to measurement and improvement.
- Key Output -- Competitive advantage is not an output of most strategy development processes.
- Ritual -- Too often strategic planning is just an annual prioritization exercise preceding budget preparation.
- Strategy on the Fly -- Strategy is often seriously addressed when a crisis looms – without the requisite skills and experience.
- Destructive Acquisitions -- In general, acquisitions destroy value.
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