Kim Warren on Strategy
Strategy insights and living business models
Strategy Dynamics Briefing 2: It matters how we get there
Join me, Kim Warren, as I introduce and explain ideas behind Strategy Dynamics. This is the second in a series of fortnightly blogs designed to give you an easy introduction to the approach.
Despite a wide range of financial measures being available the interests of investors has led to the choice of one specific measure -economic profit – as the basis for assessing performance for any particular time period. Read on to find out more…
Sustained growth: a challenge
We’ve noted before that strategy is about delivering earnings growth, not hitting ROIC ratios, but it seems that’s not easy. In Profit from the Core: A Return to Growth in Turbulent Times, Chris Zook and James Allen, coleaders of Bain’s global strategy practice, find that just 12% of companies grew revenues and…
Beware divesting core business
A rare example of clear and useful academic research from Emilie Feldman at Harvard [but treat it with care – see below]. Emilie “investigates “legacy” divestitures, the sale or spinoff of a company’s historical core business. Firms appear to divest their legacy businesses within the context of larger efforts to reshape their identities.…
Aims - growth, survival ...
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.
More on growth vs. ROIC
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.
Update on the troubles with strategy
Here’s my latest msg to the B School academics [remember the point of this is to get some useful strategy methods for executives and consultants]. Will let you all know what response I get.