In a new article featured in the June Harvard Business Review, I offer a summary of my new book. Essentially, that strategy is stuck! We've locked ourselves into a view of strategy that depends on sustainable competitive advantage. In the new strategy playbook, we'll adopt practices that are suited to environments in which advantages come and go. For instance, focusing on access to assets, not ownership of assets. And creating cultures in which candor is a core value. Among the companies that I look at are firms like Sagentia, Infosys, Accenture, ACS of Spain, Berlitz and many others. If this idea intrigues you, check out the article and subscribe to my monthly newsletter at www.ritamcgrath.com.
- Posted Rita McGrath on May 22, 2013
A few folks have been asking me what I think about this acquisition. I actually think it makes a lot of sense - relative to what Facebook spent to capture users ($30/user) or what Google spent to get viewers on YouTube ($33/user) Yahood per-user acquisition cost is somewhere between $3.67 to $9.40 / user. It also brings a younger demographic to Yahoo's user base, and brings largely non-overlapping content to the party.
Symbolically, it also seems to me that the acquisition gives Yahoo some much-needed cool credibility and an expansion of its engineering talent. It doesn't hurt that Tumblr is seen as an up and coming growth firm while Yahoo is seen as an also-ran.
- Posted Rita McGrath on May 20, 2013
Last month, I was invited to give a talk at the National Association of Broadcasters on the core theme of my new book. While there, I met the smart and savvy Dorie Clark, who did an interview with me for Forbes. In the interview, I outline why we need a new playbook for strategy, one that recognizes the need for different practices when competitive advantages are short. The new playbook calls for the following building blocks of a new form of strategy:
- Continuous Reconfiguration
- Healthy Disengagement
- Deft Resource Allocation
- Innovation Proficiency
- Discovery Driven Mindset
- Entrepreneurial Career Management
- Posted Rita McGrath on May 16, 2013
Over at my blog on the HBR site, you'll find some commentary on how difficult it is to cope with the constant changes necessary to be adaptive in a fast-moving economy under the glare of public ownership. Have a look!
- Posted Rita McGrath on May 10, 2013
On my blog at HBR, I observed that the business model for broadcasting is showing some cracks and that a new one is likely to emerge. Interestingly, a recent New York Times article points out that the compensation for media CEO's is at sky-high levels, some $10 million more, give or take than the compensation of other executives. So let me make a provocative observation: We've seen this before in industries about to go through wrenching change. In the near term, the companies will have pulled out of less productive markets, narrowed their range of offers, gone upmarket, learned to exert power over suppliers and done a ton of other things that makes their immediate results (and cash flows) look good.
Let me tell you what they aren't doing: using those cash flows to invest in the experimentation, options and new ventures that could provide them a glide path to a new business model. In other words, things look their brightest right before the business model heads over a cliff.
What those big pay packages might mean, instead of celebrating success, is that funds that should be going into building a future for the organization are going into today's consumption instead. And that's a very bad early warning.
- Posted Rita McGrath on May 09, 2013
Would you like occasional updates? Please sign up using the form below: