Spotting strategic decay
Leaders often miss the signs when business strategies start to decay, says Gary Hamel, director of the Woodside Institute, a nonprofit research organization in Woodside, Calif., that focuses on management innovation. Answering the following four questions honestly will help you recognize strategic decay in your business while there’s still time to do something about it:
1. Does your strategy still defy industry norms and provide competitive advantages and exceptional financial performance?
2. Are changes in the political, social or business world rendering your strategy less powerful or relevant?
3. Is the pace of improvement in key performance metrics slowing down?
4. Is increasing customer power eating up profits?