Amid uncertainty, have options

There is a toolkit for VUCA READ THE FULL GRAPHIC VERSION Every decision made by executives is intended to create a positive result. Typically, businesspeople use financial tools that assume: 1) executives can anticipate outcomes; 2) that the next time period is going to be similar to the last; 3) outcomes are normally distributed; and … Read more

Rita Gunther McGrath on a market framework that acts for the good of the many

The pandemic revealed the limits of red-in-tooth-and-claw capitalism READ THE FULL GRAPHIC VERSION The pandemic has taught us many lessons. One of the most important is that in the absence of sensible price signals and carefully designed incentives, markets fail us. There are two ways in which capitalist markets go wrong. The first is when … Read more

The world is less flat

READ THE FULL GRAPHIC VERSION Covid-19 has checked globalization. It’s time for a new deal between business and people The world, author Thomas L Friedman told us in 2005, is flat. As he quite rightly noted, a series of “flatteners” were even then coming together to globalize supply chains, outsource work, offshore work, and otherwise … Read more

Common understanding about business efficiency was a casualty of the pandemic

READ THE FULL GRAPHIC VERSION Rita Gunther McGrath corrects some incorrect assumptions When the ratio of assumption to knowledge is high, spending a lot of time on elaborate spreadsheets is senseless. Post-Covid-19, assumptions have the upper hand. It’s time to question them all – starting with those about cost-saving and efficiency. A certain kind of … Read more

Dynamic markets need dynamic metrics

READ THE FULL GRAPHIC VERSION Inflexible ways of analysing advantage should be put out to pasture  Stock markets are central to the functioning of the capitalist system. Yet certain metrics used by stocks analysts create obstacles for companies that are competing to create what I call ‘waves of transient advantage’.  In traditional strategy, having a … Read more

Arenas, not industries, are the new business battlegrounds

READ THE FULL GRAPHIC VERSION The old tools don’t work anymore, writes Rita Gunther McGrath The long postwar period of expansion of the US economy gave us many things. Steady economic growth. Bold new industries that operated on a global scale. The rise of the information worker. And many of the concepts strategists rely on. … Read more