Recommended Resource – What I Didn’t Learn in Business School

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What I Didn’t Learn in Business School: How Strategy Works in the Real World
by Jay B. Barney and Trish Gorman Clifford

About the Reference

What I Didn’t Learn in Business School: How Strategy Works in the Real World by Jay Barney and Trish Gorman Clifford reveals the shortfalls of the principles learned in the idealistic academic environment when applied directly to the messy, unpredictable and politically charged business world. Through a storied approach, Jay and Trish reveal the inadequacies of modeling to fully predict business outcomes and the challenge of creating alignment among leaders with differing points of view and personal agendas. They go on to illustrate the power of moving leaders past the limits of these barriers and their own collective experience to gain significant marketplace advantages and organizational prosperity.

Benefits of Using this Reference

StrategyDriven Contributors like What I Didn’t Learn in Business School because it so clearly illustrates the premise for our website, namely, that while highly beneficial, academic principles must be adapted from the ideal environment of the classroom to the unpredictable environment of the shop floor in order to provide real value to any organization. Furthermore, no single model or performance measure can adequately portray a given situation in such a way that a definitive decision can be made. Rather, multiple models and measures should be employed to create a complete picture of performance from differing perspectives to enable robust decision-making.

Its well supported, fully illustrated assertion that strong business performance is achieved through the application of sound academic principles tempered by real-world business experience makes What I Didn’t Learn in Business School a StrategyDriven recommended read.

StrategyDriven Podcast Video Edition 2 – What makes an organization StrategyDriven?

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StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the principle, best practice, and warning flag articles found on the StrategyDriven website.

Episode 2 – What makes an organization StrategyDriven? examines the qualities and characteristics of a StrategyDriven organization as well as the benefits these organizations realize over competing firms not so well aligned.
 


 
Learn more about how to become truly StrategyDriven by reading: The StrategyDriven Organization.

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Thank you again for watching the StrategyDriven Podcast – Video Edition!

Is Your Business Biased Against Innovation?

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Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Why?

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital.

Given that money today is always worth more than money in the future, you are trying to establish what the future value of the investment will be in terms of that money’s value today. If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down.

One problem is that NPV calculations tend to compare today with some future state. What they should be used for is to compare today with two different future states: one in which we do nothing and one in which we do something. Doing otherwise biases the business against innovation because what you are projecting may look unattractive relative to your business today.

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About the Author

Rita McGrath, a Professor at Columbia Business School in New York, is one of the world’s leading experts on strategy in highly uncertain and volatile environments. She works with both Global 1,000 icons and smaller, but fast-growing organizations. Some current clients include F-Secure, Nokia, Microsoft, (and its CEO Summit), AXA Equitable, General Electric, Novartis, PPG Industries, the Stena Group and the World Economic Forum. She is a popular speaker and consults to senior leadership teams. In 2009, she was inducted as a Fellow of the Strategic Management Society, an honor accorded to those who have had a significant impact on the field. To read Rita’s complete biography, click here.

4 Ways to Fail at Failing

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As a recent special issue in the Harvard Business Review points out, failing well is a critical skill that differentiates organizations that can learn and even benefit from failures. But most companies I work with fall victim to one or more of these barriers to making the most of the failures they have.

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About the Author

Rita McGrath, a Professor at Columbia Business School in New York, is one of the world’s leading experts on strategy in highly uncertain and volatile environments. She works with both Global 1,000 icons and smaller, but fast-growing organizations. Some current clients include F-Secure, Nokia, Microsoft, (and its CEO Summit), AXA Equitable, General Electric, Novartis, PPG Industries, the Stena Group and the World Economic Forum. She is a popular speaker and consults to senior leadership teams. In 2009, she was inducted as a Fellow of the Strategic Management Society, an honor accorded to those who have had a significant impact on the field. To read Rita’s complete biography, click here.

How to Turn a Great Strategic Principle into Great Results

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Results start with a strong strategic principle – a shared objective about what the organization wants to accomplish. The strategic principle guides the company’s allocation of scarce resources – money, time, and talent.

The strategic principle doesn’t merely aggregate a collection of objectives.

Rather, this simple statement captures the thinking required to build a sustainable competitive advantage that forces trade-offs among competing resources, tests the soundness of particular initiatives, and sets clear boundaries within which decision makers must operate.

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About the Author

For more than 30 years, Linda Henman has helped leaders in Fortune 500 Companies, small businesses, and military organizations define their direction and select the best people to put their strategies in motion. Linda holds a Ph.D. in organizational systems, two Master of Arts degrees in interpersonal communication and organizational development, and a Bachelor of Science degree in communication. By combining her experience as an organizational consultant with her education in business, she offers her clients selection, coaching, and consulting solutions that are pragmatic in their approach and sound in their foundation.