What's the solution to this dilemma? Michael Mauboussin at Legg Mason Capital Management suggests it is to value strategies, not projects. When an attacker is gaining ground, executives at the incumbent companies need to do their investment analyses in the same way the attackers do—by focusing on the strategies that will ensure long-term competitiveness. This is the only way they can see the world as the attackers see it and the only way they can predict the consequences of not investing.