Three Key Questions to Foster Competitive Advantage

James Heskett, a Baker Foundation Professor, Emeritus, at Harvard Business School, examined the degree to which strategy, execution, and culture contribute to organizational success, via 3 key questions that reflect all aspects of competitive sucess:

 





1. If your organization's performance (operating income) = 100%, roughly what percentage is accounted for by the quality of the organization's strategy (clients we target; products, services and results we offer; the way we organize and compensate people, etc.) vs. the quality of the organization's execution of its strategy (the quality of our people, work, processes, decisions, etc.)?

2. If your organization's strategy = 100%, roughly what proportion of its effectiveness is dependent upon and accounted for by the organization's culture (widely-shared values, beliefs, behaviors, rites and rituals, etc.)?

3. If the execution of your organization's strategy = 100%, roughly what proportion of its effectiveness is dependent upon and accounted for by the organization's culture?

The questions reflect all aspects of competitive success.
What do you think?