Friday, June 02, 2006

We Don't Do Strategy...Not Anymore

We Don't Do Strategy . . . Not Anymore . . .

We don't do traditional strategic planning these days; not because we don't like it or are not good at it; but because it is virtually useless as a way to trigger significantly higher (10%+) profits.

We don't do tactics either. Or IT systems, or process reengineering, or any of the other programs - for much the same reason. Though their impact on the bottom line can be better. However, even the best of these, business process reengineering, is deemed "successful" in only about 30% of companies. (If you think about it, 30% is just about the placebo effect.)

All of these, (and all the other "improvement" programs too, all the way back to MBO,) require something else to make them really work. For example, a study by LSE/McKinsey of 100 companies showed that new IT investments (without that extra something) generated just a 2% improvement in total factor productivity; but with that extra something, generated a 20% improvement. See McKinsey article When IT Lifts Productivity.

As we are in the business of profit / performance improvement, we specialize in that extra something that really produces results, leaving the rest for others. The ROI generated can be extraordinary: a first year ROI of 10:1 is the least to be expected.

We have been doing this work since 1980.

If you would like information on what we do and how we do it, please contact us at 847-599-9960 or No strings attached.



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