The Power of Strategic Fit
Aligning these seven factors creates greater value for a company and its stakeholders. by Darrell Rigby and Zach First
Summary.
Near the end of a lengthy strategy session at a prominent S&P 500 company, a senior executive posed a simple yet profound question: “Are we winning?” It sparked an intense discussion. On the one hand, the company had been delivering impressive financial results for nearly two years, exceeding both internal plans and analysts’ expectations. As a result, most executives received healthy bonuses. On the other hand, the company’s five-year stock price appreciation was below the S&P 500 average, indicating that investors’ confidence in its future performance was below average. Employees were burned out. Innovation was sluggish, and the release dates for next-generation products kept slipping. Collaboration among operating units was lacking. Some analysts valued the company at less than the sum of its parts.