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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. It's not the goal (e.g.,

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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. This means that an extreme outcome, good or bad, will be followed by an outcome that has an expected value closer to the mean.

Skills 15