CEOs… Avoid These 5 Common Strategy Mistakes
2012 is right around the corner, and while many people are in the holiday spirit, most CEOs and management teams in early and expansion stage software companies are heads-down finishing out their fiscal year while at the same time defining their strategy for the upcoming new year.
In doing my weekly reading I came across a blog in the Harvard Business Review that all CEOs should review as they finalize their 2012 strategy with their management teams. It is about what not to do versus what to do. The title is “5 Common Strategy Mistakes” and was written by Joan Magretta who is a senior associate at the Institute for Strategy and Competitiveness at Harvard Business School. She is the author of What Management Is and the forthcoming Understanding Michael Porter: The Essential Guide to Competition and Strategy.
Some of the best lessons I have learned are from the mistakes I have made or mistakes I have watched other people or companies make. So what are 5 Common Strategy Mistakes companies make, according to Magretta?
- Confusing marketing with strategy.
- Confusing competitive advantage with “what you’re good at.”
- Pursuing size above all else, because if you’re the biggest, you’ll be more profitable.
- Thinking that “growth” or “reaching $1 billion in revenue” is a strategy.
- Focusing on high-growth markets, because that’s where the money is.
As a former operational software executive for over 20 years and now a Venture Capital Partner at OpenView Partners, I have witnessed or experienced all of the above. To read the complete blog by Joan Magretta check it out here. It is a quick read and food for thought for anyone trying to finalize their 2012 strategy!
All the best!