Spotting strategic errors before they sink a company
Great leadership involves zooming in on the right direction for an organization and steering toward that promising new course. When something is going wrong, seasoned leaders notice the problem early and get things back on track. But how should executives go about spotting and correcting strategic flaws before they do irreparable harm? The Globe and Mail's Leadership Lab tackled this issue. (Sep. 4, Latif)
Strategic problems tend to leave organizations at a serious disadvantage in their respective markets. Spotting them is mainly difficult when executives choose not to see them, or assume conditions will change on their own. Leaders may be most apt to ignore issues because they understand how costly and time-consuming it will be to change course. However, a lack of action can finish a company off.
Strategic failures include IBM coming late to the personal computer revolution, or Microsoft missing out on the central position of search engines in internet-age digital operations. The later an organization goes before beginning its pivot, the more time its competitors will have to leave it behind. In the end, making strategic change is hard because it involves executives admitting that their organizations are marching in the wrong direction.
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