Join getAbstract to access the summary!

Strategic Renaissance

Join getAbstract to access the summary!

Strategic Renaissance

New Thinking and Innovative Tools to Create Great Corporate Strategies

AMACOM,

15 min read
9 take-aways
Text available

What's inside?

Here’s a revolutionary concept: Before buying into the latest management craze, how about some rigorous testing.


Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Evan Matthew Dudik says businesses do not select their strategies based on scientific thinking, but on anecdotal evidence. This trend has contributed to the explosion of new and changing ideas about what businesses should do. The resulting churn of activity is reflected in the many different approaches that books and consultants advocate. Dudik calls for a return to building and testing theories scientifically, arguing that no one-size-fits-all business strategy exists. Instead, managers should create and test hypotheses to determine an effective approach. Dudik also suggests applying effective warfare strategies and tactics to business. Overall, this is a fairly innovative, refreshing take on developing strategies, although presumably market research is set up to do some of this testing. Paradoxically, Dudik’s battlefield analogy seems like one more use of anecdotal evidence to bolster a theory. Generally, however, getAbstract.com recommends this thoughtful, helpful book, noting that its primary strength lies in explaining the use of scientific methodology to test business presumptions.

Summary

Corporate Stargazing

Most corporate strategy today is based on a thought process similar to that used by devotees who defend astrology by citing occasions in which someone’s horoscope came true. You cannot prove a theory by using examples. You can prove a theory using scientific testing.

Today, business books (about 2,000 are published each year) and corporate consultants make a great deal of money proposing success strategies that come and go like so many fad diets. Some of these strategies do have valid points to make. Many of them include accepted general concepts, such as promoting excellence or focusing on the customer.

But proponents of these strategies rarely confirm the merit of their tactics with empirical evidence. A list of successful companies that use a particular strategy does not prove the effectiveness of a strategy, just as a list of accurate horoscopes doesn’t validate astrology. Reverse engineering of any specific company’s success is a similarly flawed analysis, since it too relies on argument by example.

In addition, a close examination of the proof that advocates offer for many of these corporate strategies reveals other weaknesses...

About the Author

Evan Matthew Dudik is the president of Evan M. Dudik & Associates, a consulting firm in Vancouver, Washington. He was a company president, a McKinsey and Co. consultant and a lobbyist. His articles on corporate strategy have appeared in The Wall Street Journal and The Journal of Business Strategy He received his M.B.A. from Harvard Business School and his Ph.D. from the University of Texas.


Comment on this summary

More on this topic

Related Channels