Tuesday, November 17, 2015

The Wonderful Logic of Coherence

It is said that "old school" football coaches were the known to have few to no complex offensive plays in their playbooks. The reason: they wanted to run the plays they knew would work when executed better than any one else. Their opponents would know what was coming their way, but unless the team executed its defenses better than the offenses, the simple offense would work.

That philosophy is analogous to General Electric's approach to rebound from the "Great Recession" of 2008. Instead of scrambling to shore up the lucrative GE Capital that had been such a winner for years, GE went back to its roots in order to look to its future, which was manufacturing. 

In other words, GE became coherent in its approach to strategy: it invested heavily into what has made GE such a corporate giant and focused on making those items better than anyone else in the world.

Logically speaking, that makes total sense in my opinion. There will always be time to look into areas of expansion, but first make your name stand out as the best in the areas that have made you great before.

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