In stable time successful firms balance their focus on internal and external elements. But in time of rapid change and threat firms that thrive pay even more attention to external factors. Instead of putting the blinders on they focus on customer value innovation and business models they look outside the firm and outside the industry. Those firms that go bankrupt have a much higher internal focus on cost-cutting and bottom-line results and plan to survive upheaval by squeezing out a few more pennies.
Strategy thought leaders note that a focus on operational effectiveness or doing things right may yield short-term cost savings and a modest improvement in the bottom line. But adopting this focus is like being on a sinking ship yelling at the crew armed with paper cups to bail faster. To truly right the ship it will take understanding the source of the leaks looking creatively and strategically at ways to address the cause. By focusing on doing the right things in the right way instead of doing thing right firms can address strategic positioning and accrue the long-term benefits from balancing strategy with operational effectiveness.