http://blog.steverrobbins.com/bizblog/how-we-explain-success-may-be-different-from-what-really-causes-it-187 Exploring business and its impact on life with Stever Robbins Tue, 06 Jan 2009 03:32:19 +0000 http://wordpress.org/?v=2.7 hourly 1 http://blog.steverrobbins.com/bizblog/how-we-explain-success-may-be-different-from-what-really-causes-it-187/comment-page-1#comment-1266 Tom Webster Wed, 27 Aug 2008 15:51:56 +0000 2013081619#comment-1266 Also built into this effect is the "survivor bias" inherent in looking at the leading companies vs. the moribund. Michael Raynor analyzes this expertly in "The Strategy Paradox." Most business case studies look at how companies with long-term vision (like, say Wal-Mart) outperform those who adopt safer strategies (Sears, or K-Mart). What all of those companies have in common, though, is that they are all still around. It is easy to build a case around the iPod, for example, by comparing it to its struggling peers who have largely adopted 'me-too' strategies, but these case studies rarely also look at the non-survivors, products like Sony's MiniDisc that were equally visionary, long-term and technically superior. For some companies, being "non-visionary" is a business choice to mitigate risk, which is why Sears is still around and Montgomery Ward is not. Also built into this effect is the “survivor bias” inherent in looking at the leading companies vs. the moribund. Michael Raynor analyzes this expertly in “The Strategy Paradox.” Most business case studies look at how companies with long-term vision (like, say Wal-Mart) outperform those who adopt safer strategies (Sears, or K-Mart). What all of those companies have in common, though, is that they are all still around. It is easy to build a case around the iPod, for example, by comparing it to its struggling peers who have largely adopted ‘me-too’ strategies, but these case studies rarely also look at the non-survivors, products like Sony’s MiniDisc that were equally visionary, long-term and technically superior. For some companies, being “non-visionary” is a business choice to mitigate risk, which is why Sears is still around and Montgomery Ward is not.

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