By Rich Horwath Published April 16, 2014 12:00 p.m.
“The inability to effectively navigate strategy challenges can have devastating long-term effects on an organization. ... While it’s convenient to blame an organization’s failings on external factors such as the economy, decisions about strategy account for failure a whopping 70 percent of the time.
Yes, strategy does matter.
When poor decisions about strategy are made and an organization goes through a revenue stall, it’s been shown that, on average, low performance continues for more than 10 years. Unfortunately, this prolonged period of poor performance can lead to bankruptcy. Research on 750 bankruptcies during a 25-year period showed that the number-one factor behind these bankruptcies was bad strategy. Contrary to popular opinion, the researchers attributed the failures to flaws in the strategies themselves, not to poor execution of the strategies. Therefore, it’s important to be skilled at crafting strategy.”
About Rich Horwath | Rich Horwath is the CEO of the Strategic Thinking Institute where he has helped more than 50,000 managers around the world develop their strategic thinking skills. Rich is the author of the new book, Elevate: The Three Disciplines of Advanced Strategic Thinking (Wiley, 2014). He is a New York Times and Wall Street Journal bestselling author on strategy and his work has appeared on CNBC, CNN, ABC, CBS, NBC and FOX. Sign-up to receive your free copy of the Strategic Thinker newsletter by visiting www.strategyskills.com.
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