Strategy

Technology-intensive product manufacturers, automakers, or white goods makers used to be able to capitalize on their longstanding engineering and design leadership to cement their positions. But that’s no longer the case. Today, young upstarts in many product segments, especially from China, can develop world-class design and production capabilities in a short period of time. In some cases, they are closing gaps with long-established incumbents and becoming market leaders within a decade.

While the threat of national champions is nothing new, their essential character has substantially changed, and the competitive advantage of national champions in the global marketplace has become more pronounced. Today’s national champions are much more sophisticated, competing in more industries, and harder to spot than ever before. As a result, Western companies need a new strategic guide for competing against them.

Managers are often advised to make their goals specific, measurable, achievable, realistic, and time-bound (SMART), but the traditional approach to goals can actually undermine the ability of a company to execute its strategy. Instead, managers should set goals that are "FAST": embedded in Frequent discussions; Ambitious in scope; measured by Specific metrics, and Transparent.

The dramatic rise of China’s digital leaders has put the squeeze on Western internet giants. Western players must learn quickly if they are to get back in the game in the world’s fastest growing digital market.

As digital disruption expands, many legacy businesses seek partnerships with tech companies to maintain competitiveness in the digital sphere. But instead of a centralized “hub” partnership, some companies find greater success through an adaptive ecosystem model, where partners develop significant projects or innovations together. This type of strategy requires imagination and flexibility.

The traditional "SMART" approach to goal setting may no longer offer companies the best path forward. In a continually changing competitive environment, companies should develop their goals in the context of current conditions.

Meeting the recommendations for disclosure put forth by the Task Force on Climate-related Financial Disclosures might seem like a tough job. But if the oil & gas industry is any example, it’s not as difficult as some might imagine — and there are excellent reasons for corporate boards to consider it.

Once upon a time, business leaders could leave technology to the technologists. But today, we are at the starting line of a universal technological revolution — one that is fundamentally altering commerce, health care, learning, and the environment.

At the same time that many traditional retailers are closing offline stores, digitally native vertical brands such as Bonobos and Warby Parker are aggressively expanding into offline locations. And both online and offline retailers are converging in experience-oriented “showrooms.”

Many executives take the value of best practices as a given. We have an abiding faith in the idea that the most direct route to improved performance is to study what successful firms do and copy them. In reality, that is quite rarely the case.