Monthly Archives January 2011

How Procter and Gamble Lost Money

All the financial maneuvering in the world will not save a company whose strategy does not fit reality. Implementation is not the problem, adaptation is. Protecting revenues from currency fluctuations is an irrelevant remedy when the disease is the disappearance of revenues themselves. While P&G lost $157 million in a financial debacle in 1994 (derivative [...] Read More…

Types of Business Risk and How to Manage Risk

Types of Business Risk and How to Manage Risk The reason companies and their executives so often fail to systematically manage strategic risks is rooted in the way companies define the risks they face. A dictionary defines risk as “a prospect of loss.” A more precise definition found in financial theory is “the potential for [...] Read More…

How Can A Company Do Business Better

How Can A Company Do Business Better Senior executives could overcome some of the obstacles to “staring reality straight in its face” if they assumed responsibility for the active management of industry dissonance. The mere admittance that this risk is a strategic issue—their issue—and requires specific attention, resources, system, and culture to handle can bring [...] Read More…