Monday, January 7, 2013

HBR

My recent leisure reading is On Strategy, which is a collection of 10 papers published in the Harvard Business Review.

Like most bestsellers you find in our local bookstores, the best part of this book is the first chapter, which is “What is Strategy?” by Michael Porter.

 And the second best is the last one, “Who Has the D? How Clear Decision Roles Enhance Organizational Performance” by Paul Rogers and Marcia Blenko. As to the rest, they all seem PhD thesis of Gerog Hegel’s students.

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The idea of Michael Porter is simple: To thrive and excel, a company (and, in fact, a person) should choose a strategic position (or, in layman term, develop an edge). This choice inevitably involves some trade-off; rather than doing everything good, we’d better do one thing brilliant – and that means doing other things not that good.

The immediate implication is we should not extensively monitor the performance of a company by benchmarking or KPI (key performance index). Not only are these audit activity a poor spent of our effort, but, more importantly, when everyone in the field use the same benchmarks and KPIs, we all lose the edge and would have to compete by operational effectiveness – a battle that no one really wins.

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