Post by ratna479 on May 16, 2024 8:54:58 GMT
To take measures that generate good performance in the stock market in the short term, but which often destroy value in the long term. All the evidence points to the fact that the best way to build consistent, long-term value for your own shareholders is not to focus on them, but on the consumer and meeting their needs and desires. Chapter 3: customers. The nervous world we live in has given rise to a belief that there are no sustainable competitive advantages and that companies therefore need to change quickly to keep up with market changes, pushing many organizations to disconnect from their customers with unproductive changes, disregarding that people they prefer familiar solutions to perfect solutions. This is because human beings are creatures of habit who act, most of the time automatically, so as not to have to undergo the experience of rationalization for each decision, which would consume a large amount of energy, incompatible with our emerging neurobiology.
From evolution. In practice, this means that when new product categories emerge, companies can even use rational arguments to convince consumers that the purchase is worth it. But once initial inertia has been overcome and a new habit has Jamaica Email List been established, companies should avoid making changes as much as possible that make the customer think too much. They must design their products and communications to make it easier for people to maintain their habitual behaviors. Chapter 4: strategy. The way contemporary companies develop strategy is based on the premise that the best starting point is to prepare large amounts of data and, through sophisticated analysis and using elaborate tools, make the path forward logically emerge. The result is a tiring and unproductive process in which abstract decisions are not transformed into effective action. The alternative, which appears to be much more productive, is to start by raising strategic possibilities and building a process that allows you to question your assumptions and test them until you arrive at a feasible choice.
At the root of this approach is the understanding of strategy as a choice and that the best way to make this choice is through well-designed questions and tests that help answer them. Chapter 5: data. The study and practice of business is based on the belief that business decisions must be based on rigorous data analysis , which in turn is supported by the premise that management is a science and must follow the scientific method. And although data and a scientific approach are useful in the search for organizational performance, taking these perspectives to the extreme can be counterproductive as it can lead to the belief that solutions will emerge naturally from data, when, in fact, great choices depend more on imagination than data. Good ideas arise from the ability to make unusual associations and propose realities that do not yet exist, for which there is no supporting data.