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…

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…

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.…

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. 

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.

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.