Select Page

Global Advisors | Quantified Strategy Consulting

Strategy Consulting
Quote: Michael Porter – strategist, professor, author

Quote: Michael Porter – strategist, professor, author

“Competition on dimensions other than price – on product features, support services, delivery time, or brand image, for instance – is less likely to erode profitability because it improves customer value and can support higher prices.” – Michael Porter – strategist, professor, author

Michael E. Porter, born on May 23, 1947, in Ann Arbor, Michigan, is a renowned economist and professor at Harvard Business School, widely recognized for his contributions to the field of competitive strategy. His early life was marked by frequent relocations across the United States, France, and Canada, due to his father’s career as a civil engineer and army officer. This exposure to diverse cultures and economic environments sparked Porter’s interest in understanding regional and national economic development.

Porter’s academic journey began with a Bachelor of Science in Engineering (BSE) in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class. He then pursued an MBA with high distinction from Harvard Business School, followed by a PhD in business economics from Harvard University in 1973.

In 1983, Porter co-founded the Monitor Group, a strategy consulting firm that later became part of Deloitte Consulting. His seminal work, “Competitive Strategy” (1980), introduced frameworks like Porter’s Five Forces, providing tools for analyzing industry competition. This was followed by “Competitive Advantage” (1985), where he introduced the value chain concept, emphasizing the importance of differentiating a company’s activities to create unique value.

Porter’s quote, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do—it’s a matter of being different at what you do,” encapsulates his belief that true competitive advantage stems from uniqueness rather than mere operational efficiency. This perspective is further elaborated in his 1996 Harvard Business Review article, “What is Strategy?” where he asserts, “The essence of strategy is choosing what not to do.”

Throughout his career, Porter has emphasized that effective strategy involves making deliberate choices to deliver a unique mix of value to specific customer segments. This approach has influenced countless organizations and leaders, reinforcing the idea that differentiation, rather than direct competition, is key to sustainable success.

read more
Quote: Michael Porter – strategist, professor, author

Quote: Michael Porter – strategist, professor, author

“The best CEOs I know are teachers, and at the core of what they teach is strategy.” – Michael Porter – strategist, professor, author

Michael E. Porter, born on May 23, 1947, in Ann Arbor, Michigan, is a renowned economist and professor at Harvard Business School, widely recognized for his contributions to the field of competitive strategy. His early life was marked by frequent relocations across the United States, France, and Canada, due to his father’s career as a civil engineer and army officer. This exposure to diverse cultures and economic environments sparked Porter’s interest in understanding regional and national economic development.

Porter’s academic journey began with a Bachelor of Science in Engineering (BSE) in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class. He then pursued an MBA with high distinction from Harvard Business School, followed by a PhD in business economics from Harvard University in 1973.

In 1983, Porter co-founded the Monitor Group, a strategy consulting firm that later became part of Deloitte Consulting. His seminal work, “Competitive Strategy” (1980), introduced frameworks like Porter’s Five Forces, providing tools for analyzing industry competition. This was followed by “Competitive Advantage” (1985), where he introduced the value chain concept, emphasizing the importance of differentiating a company’s activities to create unique value.

Porter’s quote, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do—it’s a matter of being different at what you do,” encapsulates his belief that true competitive advantage stems from uniqueness rather than mere operational efficiency. This perspective is further elaborated in his 1996 Harvard Business Review article, “What is Strategy?” where he asserts, “The essence of strategy is choosing what not to do.”

Throughout his career, Porter has emphasized that effective strategy involves making deliberate choices to deliver a unique mix of value to specific customer segments. This approach has influenced countless organizations and leaders, reinforcing the idea that differentiation, rather than direct competition, is key to sustainable success.

read more
Quote: Michael Porter – strategist, professor, author

Quote: Michael Porter – strategist, professor, author

“The purpose of the corporation must be redefined as creating shared value, not just profit per se. This will drive the next wave of innovation and productivity growth in the global economy.” – Michael Porter – strategist, professor, author

Michael E. Porter, born on May 23, 1947, in Ann Arbor, Michigan, is a renowned economist and professor at Harvard Business School, widely recognized for his contributions to the field of competitive strategy. His early life was marked by frequent relocations across the United States, France, and Canada, due to his father’s career as a civil engineer and army officer. This exposure to diverse cultures and economic environments sparked Porter’s interest in understanding regional and national economic development.

Porter’s academic journey began with a Bachelor of Science in Engineering (BSE) in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class. He then pursued an MBA with high distinction from Harvard Business School, followed by a PhD in business economics from Harvard University in 1973.

In 1983, Porter co-founded the Monitor Group, a strategy consulting firm that later became part of Deloitte Consulting. His seminal work, “Competitive Strategy” (1980), introduced frameworks like Porter’s Five Forces, providing tools for analyzing industry competition. This was followed by “Competitive Advantage” (1985), where he introduced the value chain concept, emphasizing the importance of differentiating a company’s activities to create unique value.

Porter’s quote, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do—it’s a matter of being different at what you do,” encapsulates his belief that true competitive advantage stems from uniqueness rather than mere operational efficiency. This perspective is further elaborated in his 1996 Harvard Business Review article, “What is Strategy?” where he asserts, “The essence of strategy is choosing what not to do.”

Throughout his career, Porter has emphasized that effective strategy involves making deliberate choices to deliver a unique mix of value to specific customer segments. This approach has influenced countless organizations and leaders, reinforcing the idea that differentiation, rather than direct competition, is key to sustainable success.

read more
Quote: Michael Porter – strategist, professor, author

Quote: Michael Porter – strategist, professor, author

“Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.” – Michael Porter – strategist, professor, author

Michael E. Porter, born on May 23, 1947, in Ann Arbor, Michigan, is a renowned economist and professor at Harvard Business School, widely recognized for his contributions to the field of competitive strategy. His early life was marked by frequent relocations across the United States, France, and Canada, due to his father’s career as a civil engineer and army officer. This exposure to diverse cultures and economic environments sparked Porter’s interest in understanding regional and national economic development.

Porter’s academic journey began with a Bachelor of Science in Engineering (BSE) in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class. He then pursued an MBA with high distinction from Harvard Business School, followed by a PhD in business economics from Harvard University in 1973.

In 1983, Porter co-founded the Monitor Group, a strategy consulting firm that later became part of Deloitte Consulting. His seminal work, “Competitive Strategy” (1980), introduced frameworks like Porter’s Five Forces, providing tools for analyzing industry competition. This was followed by “Competitive Advantage” (1985), where he introduced the value chain concept, emphasizing the importance of differentiating a company’s activities to create unique value.

Porter’s quote, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do—it’s a matter of being different at what you do,” encapsulates his belief that true competitive advantage stems from uniqueness rather than mere operational efficiency. This perspective is further elaborated in his 1996 Harvard Business Review article, “What is Strategy?” where he asserts, “The essence of strategy is choosing what not to do.”

Throughout his career, Porter has emphasized that effective strategy involves making deliberate choices to deliver a unique mix of value to specific customer segments. This approach has influenced countless organizations and leaders, reinforcing the idea that differentiation, rather than direct competition, is key to sustainable success.

read more
Quote: Michael Porter – strategist, professor, author

Quote: Michael Porter – strategist, professor, author

“Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do – it’s a matter of being different at what you do.” – Michael Porter – strategist, professor, author

Michael E. Porter, born on May 23, 1947, in Ann Arbor, Michigan, is a renowned economist and professor at Harvard Business School, widely recognized for his contributions to the field of competitive strategy. His early life was marked by frequent relocations across the United States, France, and Canada, due to his father’s career as a civil engineer and army officer. This exposure to diverse cultures and economic environments sparked Porter’s interest in understanding regional and national economic development.

Porter’s academic journey began with a Bachelor of Science in Engineering (BSE) in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class. He then pursued an MBA with high distinction from Harvard Business School, followed by a PhD in business economics from Harvard University in 1973.

In 1983, Porter co-founded the Monitor Group, a strategy consulting firm that later became part of Deloitte Consulting. His seminal work, “Competitive Strategy” (1980), introduced frameworks like Porter’s Five Forces, providing tools for analyzing industry competition. This was followed by “Competitive Advantage” (1985), where he introduced the value chain concept, emphasizing the importance of differentiating a company’s activities to create unique value.

Porter’s quote, “Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do—it’s a matter of being different at what you do,” encapsulates his belief that true competitive advantage stems from uniqueness rather than mere operational efficiency. This perspective is further elaborated in his 1996 Harvard Business Review article, “What is Strategy?” where he asserts, “The essence of strategy is choosing what not to do.”

Throughout his career, Porter has emphasized that effective strategy involves making deliberate choices to deliver a unique mix of value to specific customer segments. This approach has influenced countless organizations and leaders, reinforcing the idea that differentiation, rather than direct competition, is key to sustainable success.

read more
Quote: Kenichi Ohmae – strategist, author

Quote: Kenichi Ohmae – strategist, author

“Rowing harder doesn’t help if the boat is headed in the wrong direction.” – Kenichi Ohmae – strategist, author

Kenichi Ohmae, often referred to as “Mr. Strategy,” is a distinguished Japanese organizational theorist and management consultant renowned for his contributions to strategic thinking. Born in 1943 in Kitaky, Japan, Ohmae’s academic journey includes a Bachelor of Science in chemistry from Waseda University, a Master of Science in nuclear physics from the Tokyo Institute of Technology, and a doctorate in nuclear engineering from the Massachusetts Institute of Technology. His professional career spans roles as a senior design engineer at Hitachi and a 23-year tenure at McKinsey & Company, where he co-founded its strategic management practice.

In his seminal work, The Mind of the Strategist, Ohmae emphasizes the importance of challenging prevailing assumptions to develop effective strategies. He articulates this approach by stating, “The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” This method involves persistently questioning existing practices to uncover underlying issues and opportunities for innovation.

Ohmae’s strategic philosophy is further encapsulated in his 3Cs Model, which identifies three critical factors for business success: the Company, the Customers, and the Competitors. He posits that a business strategist should focus on these elements to achieve a sustainable competitive advantage. This model underscores the necessity of understanding and integrating these components to formulate effective strategies.

His insights have significantly influenced both Japanese and Western management practices, particularly in the realm of strategic planning and competitive analysis. By advocating for a questioning mindset and a comprehensive understanding of the business environment, Ohmae has provided a framework for organizations to navigate complex and dynamic markets.

read more
Quote: Kenichi Ohmae – strategist, author

Quote: Kenichi Ohmae – strategist, author

“Analysis is the critical starting point of strategic thinking.” – Kenichi Ohmae – strategist, author

Kenichi Ohmae, often referred to as “Mr. Strategy,” is a distinguished Japanese organizational theorist and management consultant renowned for his contributions to strategic thinking. Born in 1943 in Kitaky?sh?, Japan, Ohmae’s academic journey includes a Bachelor of Science in chemistry from Waseda University, a Master of Science in nuclear physics from the Tokyo Institute of Technology, and a doctorate in nuclear engineering from the Massachusetts Institute of Technology. His professional career spans roles as a senior design engineer at Hitachi and a 23-year tenure at McKinsey & Company, where he co-founded its strategic management practice.

In his seminal work, The Mind of the Strategist, Ohmae emphasizes the importance of challenging prevailing assumptions to develop effective strategies. He articulates this approach by stating, “The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” This method involves persistently questioning existing practices to uncover underlying issues and opportunities for innovation.

Ohmae’s strategic philosophy is further encapsulated in his 3Cs Model, which identifies three critical factors for business success: the Company, the Customers, and the Competitors. He posits that a business strategist should focus on these elements to achieve a sustainable competitive advantage. This model underscores the necessity of understanding and integrating these components to formulate effective strategies.

His insights have significantly influenced both Japanese and Western management practices, particularly in the realm of strategic planning and competitive analysis. By advocating for a questioning mindset and a comprehensive understanding of the business environment, Ohmae has provided a framework for organizations to navigate complex and dynamic markets.

read more
Quote: Kenichi Ohmae – strategist, author

Quote: Kenichi Ohmae – strategist, author

“The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” – Kenichi Ohmae – strategist, author

Kenichi Ohmae, often referred to as “Mr. Strategy,” is a distinguished Japanese organizational theorist and management consultant renowned for his contributions to strategic thinking. Born in 1943 in Kitaky?sh?, Japan, Ohmae’s academic journey includes a Bachelor of Science in chemistry from Waseda University, a Master of Science in nuclear physics from the Tokyo Institute of Technology, and a doctorate in nuclear engineering from the Massachusetts Institute of Technology. His professional career spans roles as a senior design engineer at Hitachi and a 23-year tenure at McKinsey & Company, where he co-founded its strategic management practice.

In his seminal work, The Mind of the Strategist, Ohmae emphasizes the importance of challenging prevailing assumptions to develop effective strategies. He articulates this approach by stating, “The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” This method involves persistently questioning existing practices to uncover underlying issues and opportunities for innovation.

Ohmae’s strategic philosophy is further encapsulated in his 3Cs Model, which identifies three critical factors for business success: the Company, the Customers, and the Competitors. He posits that a business strategist should focus on these elements to achieve a sustainable competitive advantage. This model underscores the necessity of understanding and integrating these components to formulate effective strategies.

His insights have significantly influenced both Japanese and Western management practices, particularly in the realm of strategic planning and competitive analysis. By advocating for a questioning mindset and a comprehensive understanding of the business environment, Ohmae has provided a framework for organizations to navigate complex and dynamic markets.

read more
Quote: Kenichi Ohmae – strategist, author

Quote: Kenichi Ohmae – strategist, author

“The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” – Kenichi Ohmae – strategist, author

Kenichi Ohmae, often referred to as “Mr. Strategy,” is a distinguished Japanese organizational theorist and management consultant renowned for his contributions to strategic thinking. Born in 1943 in Kitaky?sh?, Japan, Ohmae’s academic journey includes a Bachelor of Science in chemistry from Waseda University, a Master of Science in nuclear physics from the Tokyo Institute of Technology, and a doctorate in nuclear engineering from the Massachusetts Institute of Technology. His professional career spans roles as a senior design engineer at Hitachi and a 23-year tenure at McKinsey & Company, where he co-founded its strategic management practice.

In his seminal work, The Mind of the Strategist, Ohmae emphasizes the importance of challenging prevailing assumptions to develop effective strategies. He articulates this approach by stating, “The strategist’s method is very simply to challenge the prevailing assumptions with a single question: Why?” This method involves persistently questioning existing practices to uncover underlying issues and opportunities for innovation.

Ohmae’s strategic philosophy is further encapsulated in his 3Cs Model, which identifies three critical factors for business success: the Company, the Customers, and the Competitors. He posits that a business strategist should focus on these elements to achieve a sustainable competitive advantage. This model underscores the necessity of understanding and integrating these components to formulate effective strategies.

His insights have significantly influenced both Japanese and Western management practices, particularly in the realm of strategic planning and competitive analysis. By advocating for a questioning mindset and a comprehensive understanding of the business environment, Ohmae has provided a framework for organizations to navigate complex and dynamic markets.

read more
Quote: Bruce Henderson, BCG Founder

Quote: Bruce Henderson, BCG Founder

“All strategy depends on competition.” – Bruce Henderson, BCG Founder

Bruce Doolin Henderson, born on April 30, 1915, in Nashville, Tennessee, was an influential figure in the field of business strategy. After studying mechanical engineering at Vanderbilt University, he attended Harvard Business School but left before completing his degree. Henderson’s career began at Westinghouse Corporation, where he worked for 18 years, eventually becoming a vice president. In 1963, he founded the Boston Consulting Group (BCG), which grew into a leading management consulting firm under his leadership.

Henderson’s strategic philosophy was deeply rooted in the concept of competition. He believed that the essence of a successful strategy lies in understanding and leveraging the differences between competitors, leading to distinct behaviors and outcomes. This perspective is encapsulated in his assertion: “The essential element of successful strategy is that it derives its success from the differences between competitors with a consequent difference in their behavior.”

One of Henderson’s notable contributions is the “Rule of Three and Four,” which posits that a stable, competitive industry typically has no more than three significant competitors, with market shares in a 4:2:1 ratio. This hypothesis underscores his belief in the natural equilibrium of competitive markets and the importance of strategic positioning within them.

Henderson’s ideas have been referenced and built upon by various business leaders and scholars. His emphasis on competition as the cornerstone of strategy has influenced contemporary strategic thinking, highlighting the necessity for businesses to understand their competitive landscape and to develop strategies that capitalize on their unique strengths and market positions.

In summary, Bruce Henderson’s strategic insights, particularly his focus on competition, have left a lasting impact on the field of business strategy, emphasizing the need for companies to differentiate themselves and strategically navigate their competitive environments.

read more
Quote: Sir Winston Churchill, British Prime Minister

Quote: Sir Winston Churchill, British Prime Minister

“However beautiful the strategy, you should occasionally look at the results.” – Sir Winston Churchill, British Prime Minister

The quote, “However beautiful the strategy, you should occasionally look at the results,” is often attributed to Winston Churchill. However, according to the International Churchill Society, this specific attribution cannot be verified.

Churchill’s leadership during World War II was marked by a pragmatic approach to strategy, emphasizing the importance of adapting plans based on outcomes. He believed that while planning was essential, the true measure of a strategy’s effectiveness lay in its results. This perspective is reflected in his other statements, such as, “Plans are of little importance, but planning is essential,” and “He who fails to plan is planning to fail.”

Churchill’s emphasis on evaluating the effectiveness of strategies has resonated with many leaders and thinkers. For instance, former U.S. Secretary of Defense Donald Rumsfeld, who admired Churchill’s strategic acumen, developed a complex card game called “Churchill Solitaire” to challenge and refine strategic thinking.

In essence, Churchill’s approach underscores the importance of not only crafting well-thought-out strategies but also continuously assessing their outcomes to ensure they achieve the desired objectives.

read more
Quote: James Carville, Former political adviser to President Bill Clinton

Quote: James Carville, Former political adviser to President Bill Clinton

“I would like to come back as the bond market. You can intimidate everybody.” – James Carville, Former political adviser to President Bill Clinton

James Carville’s famous quip speaks volumes about the immense, often unseen power wielded by the bond market over governments and economies. This power was vividly demonstrated in early April 2025, when a dramatic clash between US policy decisions and market forces played out.

The April 2025 Treasury Market Turmoil and Tariff Reversal:

In early April 2025, the Trump administration announced a set of aggressive new tariffs, including broad “reciprocal” tariffs targeting numerous trading partners. The reaction in financial markets was swift and severe. While stock markets tumbled, the real drama unfolded in the US Treasury market – typically considered the world’s ultimate safe haven.

Beginning Tuesday, April 8th, and intensifying overnight into Wednesday, April 9th, Treasury bonds experienced a sharp sell-off. This wasn’t the usual inverse relationship where bonds rally when stocks fall due to recession fears. Instead, both asset classes plunged simultaneously, a rare and alarming pattern previously seen during the acute phase of the COVID-19 panic in March 2020.

Yields on US Treasuries soared. The benchmark 10-year Treasury yield jumped by over 60 basis points (0.60 percentage points) in less than 48 hours, briefly touching 4.51% on Wednesday. The 30-year yield even breached the 5% mark. This surge in US borrowing costs rippled globally, pushing yields higher in the UK and Japan.

Several factors fueled this bond market rout:

  1. Policy Uncertainty & Inflation Fears: The new tariffs raised immediate concerns about escalating trade wars, potential retaliation, supply chain disruptions, and ultimately, higher inflation, which erodes the value of fixed bond payments.
  2. Weak Auction Demand: An auction for 3-year Treasury notes on Tuesday, April 8th, met with weak demand, signalling investor nervousness and contributing to the upward pressure on yields across all maturities.
  3. Technical Unwinding: The sudden spike in volatility triggered margin calls for highly leveraged hedge fund strategies built around Treasuries. Funds were forced to rapidly sell Treasuries to raise cash and reduce risk, creating a downward spiral in prices (and upward spiral in yields). Key trades affected included:
    • Basis Trades: Bets on tiny price differences between Treasury bonds and futures contracts, often leveraged 50-100 times. Unwinding these trades, estimated to involve hundreds of billions or even a trillion dollars, forced large-scale Treasury sales.
    • Swap Spread Trades: Bets on the relationship between Treasury yields and interest rate swap rates. Recent volatility forced an unwind here too, exacerbating the sell-off.
    • Off-the-Run Trades: Exploiting small yield differences between newly issued (“on-the-run”) and older (“off-the-run”) Treasuries. Widening spreads indicated stress and forced selling.
  4. Safe Haven Concerns: The simultaneous fall in stocks and bonds led analysts like former Treasury Secretary Lawrence Summers to suggest a “generalized aversion to US assets,” questioning the traditional safe-haven status of Treasuries. Speculation, though unproven, arose about whether major holders like China might be selling Treasuries in retaliation.

The speed and severity of the Treasury sell-off raised fears of systemic risk – a potential market freeze-up similar to March 2020, which could necessitate emergency intervention by the Federal Reserve. As Treasury Secretary Scott Bessent attempted to calm nerves, describing it as an “uncomfortable but normal deleveraging,” the pressure became undeniable.

President Trump himself acknowledged watching the bond market and noted people “were getting yippy.” Faced with this intense market pressure, the administration abruptly reversed course on Wednesday, April 9th, announcing a withdrawal or “90-day pause” on the most controversial “reciprocal” tariffs, though other tariffs remained.

While the stock market celebrated with a relief rally, Treasury yields remained elevated, reflecting lingering uncertainty. The episode served as a stark reminder: the bond market, through the collective actions of countless global investors reacting to perceived risks, could indeed “intimidate” and force a rapid change in government policy.

How Bond Trading Works:

At its core, a bond is a loan made by an investor to a borrower (like a government or corporation). The borrower pays periodic interest (coupon) and repays the principal amount at maturity.

  • Issuance: Governments (like the US Treasury) issue bonds to finance spending. They sell these bonds through auctions.
  • Trading: After issuance, bonds trade in the secondary market. Investors buy and sell bonds based on their views on interest rates, inflation, economic growth, and the creditworthiness of the issuer.
  • Price and Yield: Bond prices and yields (the effective interest rate) move inversely. When demand for a bond increases, its price goes up, and its yield goes down. When investors sell bonds, prices fall, and yields rise. Rising yields mean higher borrowing costs for the issuer.
  • US Treasuries: The market for US Treasury bonds is the largest and most liquid in the world. Treasury yields are a benchmark for interest rates globally and are crucial for pricing other financial assets. They are also widely used as collateral in other financial transactions (like repo loans).
  • Leverage and Complex Trades: As seen in the April 2025 event, sophisticated investors like hedge funds often use leverage (borrowed money, often via the repo market using Treasuries as collateral) to amplify returns from small price discrepancies between related instruments (e.g., cash bonds vs. futures, on-the-run vs. off-the-run bonds, bonds vs. swaps). While these trades can enhance market liquidity, the high leverage makes them vulnerable to sudden volatility, potentially triggering forced selling and market disruption.

Who is James Carville and Why He Said This:

James Carville, nicknamed the “Ragin’ Cajun,” is a prominent American political consultant and strategist, best known for masterminding Bill Clinton’s successful 1992 presidential campaign. He is famous for his sharp wit, populist messaging, and coining the phrase, “It’s the economy, stupid,” which became the unofficial slogan of the Clinton campaign, emphasizing the focus needed to win the election during an economic recession.

Carville made the remark about wanting to “come back as the bond market” likely during the early 1990s. At that time, the Clinton administration faced significant pressure from the bond market regarding the national debt and budget deficits. The term “bond vigilantes” was often used to describe investors who would sell government bonds (thus driving up interest rates and borrowing costs) if they disapproved of a government’s fiscal policies, effectively forcing policymakers towards austerity or deficit reduction.

Carville’s quote perfectly captures the frustration and awe politicians often feel towards the faceless, powerful entity that is the global bond market. Unlike voters or political opponents, the bond market operates on cold calculation of risk and return. Its judgments, expressed through buying and selling that moves yields, can impose discipline and constraints on governments far more effectively, and often more intimidatingly, than any political force. The events of April 2025 showed this power remains profoundly relevant.

read more
Quote: Jim Collins & Jerry Porras – Built to Last: Successful Habits of Visionary Companies

Quote: Jim Collins & Jerry Porras – Built to Last: Successful Habits of Visionary Companies

“Building a visionary company requires one percent vision and 99 percent alignment.” – Jim Collins & Jerry Porras – Built to Last: Successful Habits of Visionary Companies

Jim Collins and Jerry Porras are renowned authors and management theorists best known for their influential book, “Built to Last: Successful Habits of Visionary Companies,” published in 1994. This work emerged from a comprehensive six-year research project that aimed to identify the characteristics that enable certain companies to thrive over the long term, often outlasting their competitors and adapting to changing market conditions.

Jim Collins, born on January 25, 1958, is a prominent business consultant and lecturer who has dedicated much of his career to studying what makes companies successful. He is also the author of several bestsellers, including “Good to Great,” which further explores the principles of effective leadership and organizational success. Collins’s research emphasizes the importance of disciplined thought and action, as well as the need for a strong organizational culture.

Jerry Porras, born on September 20, 1938, is an esteemed academic and professor emeritus at Stanford University’s Graduate School of Business. His expertise lies in organizational behavior and change, and he has contributed significantly to the understanding of how companies can develop and maintain a visionary approach. Porras’s work often focuses on the dynamics of leadership and the role of core values in guiding organizational success.

In “Built to Last,” Collins and Porras introduce the concept that while having a clear vision is essential for a company’s direction, the real challenge lies in achieving alignment across the organization. The quote, “Building a visionary company requires one percent vision and 99 percent alignment,” encapsulates this idea, highlighting that the execution of a vision is heavily dependent on the collective efforts and commitment of all members within the organization. This alignment ensures that everyone is working towards the same goals, fostering a cohesive culture that supports long-term success.

The book has been widely referenced and praised by business leaders and strategists for its practical insights and frameworks. It identifies key habits and practices that distinguish visionary companies, such as maintaining a core ideology, embracing change, and setting ambitious goals. The principles outlined in “Built to Last” continue to resonate with organizations seeking to cultivate enduring success and navigate the complexities of the business landscape. Collins and Porras’s work has left a lasting impact on the field of management, inspiring countless leaders to prioritize alignment and shared purpose in their strategic endeavors.

read more
Quote: A.G. Lafley & Roger L. Martin in their book Playing to Win

Quote: A.G. Lafley & Roger L. Martin in their book Playing to Win

“Winning should be at the heart of every strategy.” – A.G. Lafley & Roger L. Martin in their book Playing to Win

A.G. Lafley and Roger L. Martin are prominent figures in the field of strategic management, particularly known for their collaborative work on the book “Playing to Win: How Strategy Really Works,” published in 2013. This book has become a cornerstone in understanding how organizations can effectively develop and implement winning strategies.

A.G. Lafley, born on June 13, 1947, is best known for his tenure as the CEO of Procter & Gamble (P&G), where he led the company through significant transformations. Under his leadership, P&G doubled its sales and expanded its portfolio of billion-dollar brands. Lafley emphasized a consumer-centric approach, advocating that understanding consumer needs is essential for driving innovation and growth. His mantra, “Consumer is Boss,” reflects his belief in prioritizing customer insights in strategic decision-making.

Roger L. Martin, born on August 4, 1956, is a respected academic and former Dean of the Rotman School of Management at the University of Toronto. He is recognized for his contributions to strategic thinking and management theory, particularly through his development of integrative thinking and design thinking concepts. Martin’s work emphasizes the importance of making strategic choices that align with an organization’s goals and capabilities.

In “Playing to Win,” Lafley and Martin present a framework for strategy that revolves around five key choices: defining a winning aspiration, determining where to play, deciding how to win, identifying core capabilities, and establishing management systems. The quote, “Winning should be at the heart of every strategy,” encapsulates the essence of their approach, which asserts that a clear focus on winning is crucial for effective strategy formulation. This perspective encourages organizations to be deliberate in their choices and to align their resources and efforts toward achieving competitive advantage.

The book has been widely referenced by business leaders and strategists who appreciate its practical insights and actionable frameworks. Lafley and Martin’s emphasis on the importance of winning as a strategic objective resonates with many organizations striving to navigate complex market dynamics and achieve sustainable growth. Their collaborative work continues to influence strategic management practices across various industries, reinforcing the idea that a winning mindset is essential for success.

read more
Quote: Henry Mintzberg Management thinker and strategic planning theorist

Quote: Henry Mintzberg Management thinker and strategic planning theorist

“Strategy is not the consequence of planning, but the opposite: its starting point.” – Henry Mintzberg, Management thinker and strategic planning theorist

Henry Mintzberg, born on September 2, 1939, in Montreal, Canada, is a renowned academic and author known for his extensive work in management and organizational theory. He is currently the Cleghorn Professor of Management Studies at McGill University, where he has been teaching since 1968. Mintzberg’s contributions to the field of strategic management have significantly shaped how organizations approach strategy formulation and implementation.

The quote, “Strategy is not the consequence of planning, but the opposite: its starting point,” reflects Mintzberg’s critical perspective on traditional strategic planning processes. He argues that many organizations mistakenly view strategy as a linear outcome of formal planning, which often leads to rigidity and a disconnect from the realities of the business environment. Instead, Mintzberg posits that strategy should emerge from the ongoing interactions and experiences within the organization, emphasizing the importance of adaptability and responsiveness.

Mintzberg’s work challenges the conventional wisdom that prioritizes analytical and prescriptive approaches to strategy. He advocates for a more nuanced understanding of strategy as a dynamic process that involves both deliberate planning and emergent practices. This perspective is encapsulated in his concept of the “5 Ps of Strategy,” which includes strategy as Plan, Ploy, Pattern, Position, and Perspective. Each of these dimensions highlights different aspects of how organizations can navigate their strategic landscapes.

His ideas have resonated with many business leaders and scholars who recognize the limitations of rigid planning frameworks. Mintzberg’s emphasis on the importance of real-world experiences and the need for flexibility in strategy formulation has influenced various sectors, encouraging organizations to embrace a more holistic and adaptive approach to strategic management.

In summary, Henry Mintzberg’s insights into strategy underscore the significance of viewing strategy as a foundational element that informs planning rather than a mere outcome of it. His work continues to inspire discussions on how organizations can effectively navigate the complexities of their environments while remaining true to their strategic objectives.

read more
Quote: Michael E. Porter, American  economist and founder of strategic management

Quote: Michael E. Porter, American  economist and founder of strategic management

“The essence of strategy is choosing what not to do.” – Michael E. Porter, American  economist and founder of strategic management

Michael E. Porter, born on May 23, 1947, is a prominent American academic and a leading authority in the field of competitive strategy. He is best known for his groundbreaking work at Harvard Business School, where he has shaped the understanding of how businesses can achieve competitive advantage. His influential theories, particularly the Five Forces framework and the Value Chain model, have become foundational in strategic management.

Porter’s quote, “The essence of strategy is choosing what not to do,” encapsulates a core principle of his approach to strategic management. This perspective emphasizes that effective strategy is not merely about making choices on what to pursue but also about recognizing and intentionally avoiding certain paths. By doing so, organizations can focus their resources and efforts on areas where they can create the most value and differentiate themselves from competitors.

Throughout his career, Porter has highlighted the importance of understanding industry structure and competitive forces. His work suggests that companies must analyze their competitive environment to make informed strategic decisions. This analysis involves assessing factors such as the intensity of rivalry among existing competitors, the bargaining power of suppliers and buyers, the threat of new entrants, and the threat of substitute products or services.

Porter’s insights have been referenced by numerous business leaders and strategists who recognize the value of his frameworks in navigating complex market dynamics. His emphasis on strategic choice has influenced various sectors, from healthcare to technology, encouraging organizations to adopt a disciplined approach to decision-making.

In summary, Michael Porter’s contributions to strategic management have provided a robust framework for understanding competition and guiding organizations in their strategic choices. His quote serves as a reminder that clarity in what to exclude from a strategy is just as crucial as the decisions made about what to include.

read more
Fast Fact: Some of your business segments are destroying value – which?

Fast Fact: Some of your business segments are destroying value – which?

By Stuart Graham

Key insights

We often see uncertainty in our clients about whether to focus on RONA or growth. While both are obviously important, which will create the greatest value for their companies and shareholders?

We introduced the market-cap curve to help answer this question by plotting the well-known valuation equation for combinations of RONA and growth at a constant valuation.

RONA / growth combinations along the curve preserve the company valuation. Combinations above the curve increase the valuation and combinations below the curve decrease the valuation.

It is easy to see from the graph that companies with high RONA and low growth will benefit more from growth improvements while companies with low RONA and high growth will benefit more from RONA improvements.

The market capitalisation curve provides a useful boundary for capital allocation when business segment performance are plotted against the curve.

ANY performance improvement of ANY business unit raises the aggregate performance and therefore moves the curve outwards – i.e. increases company value.

read more
Strategy Tools: ‘Price-Volume-Profit’ Part 1 – A strategic take on cost-volume-profit analysis

Strategy Tools: ‘Price-Volume-Profit’ Part 1 – A strategic take on cost-volume-profit analysis

By Eric van Heeswijk and Marc Wilson
Eric is an analyst and Marc is a partner at Global Advisors. Both are based in Johannesburg, South Africa.

Almost every person who has studied financial or management accounting at school or university is probably familiar with cost-volume-profit (CVP) analysis. It should be the basis of financial planning in most companies. However, in our experience, most managers do not apply the analysis and get it wrong in its most basic form (e.g. planning for similar / increased volumes together with price increases). The outcome? At best: results that fail to meet budgets. At worst: firms trigger the “margin-price-volume death spiral”. Whether you are a production manager or a CEO, you should understand how CVP analysis applies to your firm. Your business’s survival may be at stake.

Read more at:
https://globaladvisors.biz/blog/2019/11/28/strategy-tools-price-volume-profit-part-1-a-strategic-take-on-cost-volume-profit-analysis/

read more
Strategy Tools: The Growth-Share Matrix

Strategy Tools: The Growth-Share Matrix

The Growth-Share Matrix was introduced almost 50 years ago by Bruce Henderson and the Boston Consulting Group (BCG). It is considered one of the most iconic strategic planning techniques.

The Growth-Share Matrix is a framework first developed in the 1960s to help companies think about the priority (and resources) that they should give to their different businesses. At the height of its success, in the late 1970s and early 1980s, the Growth-Share Matrix (or approaches based on it) was used by about half of all Fortune 500 companies, according to estimates.

The Growth-Share Matrix

The need which prompted The Growth-Share idea was, indeed, that of managing cash-flow. It was reasoned that one of the main indicators of cash generation was relative market share, and one which pointed to cash usage was that of market growth rate:

“To be successful, a company should have a portfolio of products with different growth rates and different market shares. The portfolio composition is a function of the balance between cash flows. High growth products require cash inputs to grow. Low growth products should generate excess cash. Both kinds are needed simultaneously.”—Bruce Henderson.

The two axes of the matrix are relative market share (or the ability to generate cash) and growth (or the need for cash).

For each product or service, the “area” of the circle represents the value of its sales. The growth–share matrix thus offers a “map” of the organization’s product (or service) strengths and weaknesses, at least in terms of current profitability, as well as the likely cashflows.

The matrix puts each of a firm’s businesses into one of four categories. The categories were all given memorable names – cash cow, star, dog and question mark – which helped to push them into the collective consciousness of managers all over the world.

read more
Strategy Tools: Profit from the Core

Strategy Tools: Profit from the Core

Extensive research conducted by Chris Zook and James Allen has shown that many companies have failed to deliver on their growth strategies because they have strayed too far from their core business. Successful companies operate in areas where they have established the “right to win”. The core business is that set of products, capabilities, customers, channels and geographies that maximises their ability to build a right to win. The pursuit of growth in new and exciting often leads companies into products, customers, geographies and channels that are distant from the core. Not only do the non-core areas of the business often suffer in their own right, they distract management from the core business.

Profit from the Core is a back-to-basics strategy which says that developing a strong, well-defined core is the foundation of sustainable, profitable growth. Any new growth should leverage and strengthen the core.

Management following the core methodology should evaluate and prioritise growth along three cyclical steps:

Management following the core methodology should evaluate and prioritise growth along three cyclical steps

Focus – reach full potential in the core

  • Define the core boundaries
  • Strengthen core differentiation at the customer
  • Drive for superior cost economics
  • Mine full potential operating profit from the core
  • Discourage competitive investment in the core

For some companies the definition of the core will be obvious, while for others much debate will be required. Executives can ask directive questions to guide the discussion:

  • What are the business’ natural economic boundaries defined by customer needs and basic economics?
  • What products, customers, channels and competitors do these boundaries encompass?
  • What are the core skills and assets needed to compete effectively within that competitive arena?
  • What is the core business as defined by those customers, products, technologies and channels through which the company can earn a return today and compete effectively with current resources?
  • What is the key differentiating factor that makes the company unique to its core customers?
  • What are the adjacent areas around the core?
  • Are the definitions of the business and industry likely to shift resulting in a change of the competitive and customer landscape?

Expand – grow through adjacencies

  • Protect and extend strengths
  • Expand into related adjacencies
  • Push the core boundaries out
  • Pursue a repeatable growth formula

Companies should expand in a measured basis, pursuing growth opportunities in immediate and sensible adjacencies to the core. A useful tool for evaluating opportunities is the adjacency map, which is constructed by identifying the key core descriptors and mapping opportunities based on their proximity to the core along each descriptor. An example adjacency map is presented below:

Adjacency Map

Redefine – evaluate if the core definition should be changed

  • Pursue profit pools of the future
  • Redefine around new and robust differentiation
  • Strengthen the operating platform before redefining strategy
  • Fully value the power of leadership economics
  • Invest heavily in new capabilities

Executives should ask guiding questions to determine whether the core definition is still relevant.

  • Is the core business confronted with a radically improved business model for servicing its customers’ needs?
  • Are the original boundaries and structure of the core business changing in complicated ways?
  • Is there significant turbulence in the industry that may result in the current core definition becoming redundant?

The questions can help identify whether the company should redefine their core and if so, what type of redefinition is required:

Core redefinition

The core methodology should be followed and reviewed on an on-going basis. Management must perform the difficult balancing act of ensuring they are constantly striving to grow and reach full potential within the core, looking for new adjacencies which strengthen and leverage the core and being alert and ready for the possibility of redefining the core.

Source: 1 Zook, C – 2001 – “Profit From The Core” – Cambridge, M.A. – Harvard Business School Press
2 Van den Berg, G; Pietersma, P – 2014 – “25 need-to-know strategy tools” – Harlow – FT Publishing

read more

Download brochure

Introduction brochure

What we do, case studies and profiles of some of our amazing team.

Download

Our latest podcasts on Spotify

Sign up for our newsletters - free

Global Advisors | Quantified Strategy Consulting