How well do you understand the competitive environment your business operates in? Most strategic planners and executives know that matching their strategies to their environment is crucial. Further, most claim to have a good understanding of their environment. However, recent research conducted by BCG and published in HBR indicates that the majority of firms misread their environment. Consequently, they run the very real risk of adopting an inappropriate strategic style and/or developing flawed strategies.
Helpfully, there are many good tools available (a quick Google search will get you started) to help planners and executives read their environment more accurately. It is my experience that firms that use these tools, and engage a skilled facilitator to challenge assumptions, tend to create strategies that are more well suited to their environments. And that's got to be good for business in these tough economic times, don't you think?
Thoughts on corporate governance, strategy and effective board practice; our place in the world; and, other things that catch my attention.