It's offering advice for avoiding growth stalls, drawing from practices currently in use at large, high-growth companies to foresee possible stalls and head them off. Article gives four categories which regarded as main reason for growth stalls. A premium position backfires, innovation management breaks down, core business is abandoned prematurely and company lacks a strong talent bench. The key point is that all of the most common causes of growth stalls are not come from external force. It’s from management’s failure. Thus it’s knowable and preventable. To spot the sign of growth stalls, they suggest us to use diagnostic self-test they developed. It’s the asking, what company’s senior managers have seen in their markets, in their competitors, in their own internal practice that might be alert of impending stall. To prevent the growth stalls, they recommend us to make strategic assumptions explicit and carry forward it relevance and accuracy. Thus, agility for reacting to changes of circumstance will be improved. Four practices are required to carry out that process. First, commission a core-belief identification squad which consisted with employees who are less stick to current orthodoxies. Second, conduct teams which develop visions of your company’s future five years hence. Third, appoint a shadow cabinet. Lastly, ask a venture capitalist to sit in on strategy reviews and probe for weakness. Authors’ insist that on the strategy agenda, guarding against growth stalls should be at the top. And firm should renew their competence in strategy in this point.
Limitation and defect
The authors’ thrust is reasonable theoretically. In intellectual approach, it’s appropriate and fresh idea. However, since theories are based on consequences, it entertains a doubt to rationalize theories in results. Consequently, it’s conflict against real-business situation. First of all, there are a lot of brands who are maintaining their market leadership although...
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