Underperforming Corporations
Underperforming Corporations
Collective evidence indicates that rigidity in market strategies and actions is more the rule than the exception in many businesses. This rigidity is a reaction to perceived threats, threats from VCs, or investors, or the threat of running out of money, or threatened reactions to missed objectives, etc. Strategic rigidity will prevail if reacting flexibly to these threats requires management to deviate from the company's core beliefs, values and learned behavior.
These threats cause decision-makers to take well known actions; and make practiced decisions that restrict open decision making by the management team. Rigidity causes businesses to become strategically myopic as well as product centric and centric to their core values. Often these core values causes a rigidity of thought that is amplified by the desire to gain market share, meet revenue or growth targets, or (for new companies) obtaining economic capital, or to satisfy investors. And the desires to achieve these targets and not violate learned behaviors.
At the same time, management teams become unaware of other strategic or environmental requirements; like the need to develop social capital, or to optimize their human capital. And most usually, they are unaware of the ambiguities facing them; or possess the strategic flexibility to deal with them, especially if developing flexibility pulls them away from the application of values developed from previous successes.
It is what businesses don't know that presents the greatest threat to their performance and their existence!
Companies need to obtain (or develop) the ability to apply 'knowledgeable objectivity' to their processes, whether it be to business planning, new products, evaluating the capabilities of their current human capital, or their marketing and sales activities. Other firms have been down roads similar (consultants have probably been there too) to the one the company's on. There is much to be learned from that experience, but managers can't be taught experience, they can only experience. That is why companies should look outside themselves for 'knowledgeable objectivity' support.
Objectivity can be acquired from consultants, from partners, or from enabled members of the management team who are not emotionally involved in a team's objectives. These individuals could be company representatives building the company's Social Capital. Their external activities in association with knowledgeable members of their industrial community can provide objective perspectives.
Companies need an unbiased strategic focus; they must have the flexibility to deal with environmental and marketing ambiguities. Most of these problems (and opportunities) are not anticipated; despite attempts to forecast them. The rigidity of thought and action creates paradoxically complex opportunistic situations for them. Companies must create a path to flexibility, learning and constant improvement! They must become aware of inbuilt rigidities and develop counteractive processes. Companies must look outside of themselves to develop self correcting perspectives.
Underperforming Corporations - To learn more about this author, visit Henry Gregor's Website.
Like this article? Share it with your friends
Many established businesses develop (or inherited) management processes that are 'strategically rigid'. Business managers (especially of new businesses) quickly develop rigidity of thought and action. Even after defining and launching a new business, or new product, managers quickly form processes of rigid thinking. They may bring this behavior with them from previous jobs, especially if the core values they had adopted brought success.
Collective evidence indicates that rigidity in market strategies and actions is more the rule than the exception in many businesses. This rigidity is a reaction to perceived threats, threats from VCs, or investors, or the threat of running out of money, or threatened reactions to missed objectives, etc. Strategic rigidity will prevail if reacting flexibly to these threats requires management to deviate from the company's core beliefs, values and learned behavior.
These threats cause decision-makers to take well known actions; and make practiced decisions that restrict open decision making by the management team. Rigidity causes businesses to become strategically myopic as well as product centric and centric to their core values. Often these core values causes a rigidity of thought that is amplified by the desire to gain market share, meet revenue or growth targets, or (for new companies) obtaining economic capital, or to satisfy investors. And the desires to achieve these targets and not violate learned behaviors.
At the same time, management teams become unaware of other strategic or environmental requirements; like the need to develop social capital, or to optimize their human capital. And most usually, they are unaware of the ambiguities facing them; or possess the strategic flexibility to deal with them, especially if developing flexibility pulls them away from the application of values developed from previous successes.
It is what businesses don't know that presents the greatest threat to their performance and their existence!
Companies need to obtain (or develop) the ability to apply 'knowledgeable objectivity' to their processes, whether it be to business planning, new products, evaluating the capabilities of their current human capital, or their marketing and sales activities. Other firms have been down roads similar (consultants have probably been there too) to the one the company's on. There is much to be learned from that experience, but managers can't be taught experience, they can only experience. That is why companies should look outside themselves for 'knowledgeable objectivity' support.
Objectivity can be acquired from consultants, from partners, or from enabled members of the management team who are not emotionally involved in a team's objectives. These individuals could be company representatives building the company's Social Capital. Their external activities in association with knowledgeable members of their industrial community can provide objective perspectives.
Companies need an unbiased strategic focus; they must have the flexibility to deal with environmental and marketing ambiguities. Most of these problems (and opportunities) are not anticipated; despite attempts to forecast them. The rigidity of thought and action creates paradoxically complex opportunistic situations for them. Companies must create a path to flexibility, learning and constant improvement! They must become aware of inbuilt rigidities and develop counteractive processes. Companies must look outside of themselves to develop self correcting perspectives.
Underperforming Corporations - To learn more about this author, visit Henry Gregor's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Henry's articles
 | |
|
|  |
 | |
|
| |
 | ||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 SEO Made Simple Sample Chapter Internet Marketing Campaigns Content Challenged Hiring An SEO Expert Profitable Blog Guide |
|
 | ||
 |
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009 | |
 |
Write The PR
Press Release Builder | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
