| When is theory powerful? | |
| Whether they like it or not, decision makers use theory all the time, even if it is only their own private beliefs about why things happen and the likely impact of their decisions. Theory does not need to be complex – it is simply an explanation for what causes what, and how – without which there can be little confidence in the likely effect of any strategy we develop or decisions we might take. Continue reading » | |
|
This is the third post in the fortnightly series of Strategy Dynamics Briefings.
Continue reading »
|
|
This is the second post in the fortnightly series of Strategy Dynamics Briefings.
Despite a wide range of financial measures being available the interests of investors has led to the choice of one specific measure. What is it? (If you would like to receive the series from the beginning in your email inbox, please register on www.strategydynamics.com and subscribe to Briefings in “MyAccount”) Continue reading » |
|
This is the first post in the series of Strategy Dynamics Briefings. Join me, as I introduce and explain ideas behind Strategy Dynamics in these fortnightly blog posts. (If you would like to receive this series from the beginning in your email inbox, please register on www.strategydynamics.com and subscribe to Briefings in “MyAccount”)
|
Mar 232009
I made a strong case in a previous post that strategy research should have been asking how strong firms grow cash flows, not deliver profit ratios. I had two main push-backs – 1. is growth relevant in present conditions? – 2. survival is really all that matters. Continue reading »
Feb 262009
One challenge I got from the academics on the issue of strategy tools’ usefulness was whether growth is still a relevant question in these recessionary times. Continue reading »
The SMS conference reminds me of a long-standing puzzle. We have known for decades that investors value growth in earnings – because they either get rising dividends or a rising stock price they can sell on. Profitability – return on sales or on assets - is only of interest insofar as it enables future earnings growth. So how come the strategy field is obsessed with ‘explaining’ why some firms are more profitable than others, when investors aren’t interested and management does not pursue it? Continue reading »
