Remove Goal Remove Marketing Remove ROIC Remove Strategy
article thumbnail

Five Common Strategy Mistakes

Harvard Business Review

Connecting the dots between his classic frameworks ( the five forces , for example) and his latest thinking (the five tests of strategy) gave me a new understanding of the most common mistakes that can derail a company's strategy. Understanding Porter's strategy fundamentals will help you to avoid them. Mistake #1. Mistake #4.

article thumbnail

Untangling Skill and Luck

Harvard Business Review

Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). If you follow that group over time, you would see their ROICs revert back toward the cost of capital. In determining the ultimate amount of pay, the vagaries of the market overwhelmed the performance of the executives.

Skills 15