By Constantinos Markides
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Additional info for All the Right Moves: A Guide to Crafting Breakthrough Strategy
Sample text
Most people miss this obvious answer because they search for words that have the same vowel sound that's in many. The first answer in this exercise has biased our thinking and forced us to think in a very narrow way. But now think of this implication: If one word is enough to bias our thinking in such a way, imagine what twenty or thirty years in a given business can do. How to Escape Mental Models Despite having such a profound effect on our behavior, most of our individual and organizational mental models are tacitthey exist and govern our behavior, but we are not aware of either their existence or their influence on our actions.
By 1976, Kmart was doing almost twice the sales volume of Woolworth and was second only to Sears among general merchandise retailers. Schwab: In 1995, the low-cost brokerage firm Schwab had no Internet business to speak of. 7 Started as a separate internal venture, Schwab's electronic unit was quickly integrated into the rest of the organization so that customers could purchase the same product at the same price, no matter what distribution method they used (phone, branch office, or Internet). Schwab began by offering two separate concepts to the customer (to avoid excessive cannibalization) but quickly merged the two in response to customer demands.
Rather, Pegasus is a good example of the key points made in this chapter. Summary 1. What we need to do in a business (that is, our strategy) is conditioned by what we think that business is. An essential element of any strategy should be the clear and explicit definition of the business the company is in. Formulating this definition should be the starting point of any strategy-planning session. Once you have a specific definition, the actions you need to take become apparent. 2. There is no right or wrong way to define a business.