Strategy is for the HEALTHY...not the sick or dying.

During my career, both as GE's Corporate Strategist and in my more than 26 years as a consultant, I have emphasized the need to do strategic thinking and decision making, when the organization is healthy and has options, and not when it is very sick, in the intensive care ward or dying.

The recent, shocking collapse of the automobile and financial services industries, prove that it is impossible to develop viable options when the patients are in emergency surgery. It amazes me that the so called "leaders" of giant, prestigious companies, like GM, Ford, Citicorp, Merrill...could have been so surprised by the decline and fall of their markets. They fell into the GO BIG/ GO GLOBAL trap and tried to be all things to all people and do "creative packaging and book keeping" to grow market share. Unfortunately this has proven to be a global phenomena and not just an American problem.

I became involved in learning and practicing the art of strategic thinking in the early 1970s when GE's CEO Fred Borch recognized, that he had tried to do too much too soon and it negatively impacted GE's profitability and threatened its future.

Mr. Borch admitted he made a mistake and became the advocate of the principles of strategic portfolio leadership and management. GE was willing to challenge everything and everyone and focus on areas where GE could win.This enabled the company to prosper. Unfortunately, even GE, has become a victim of the GO BIG and GO GLOBAL mystique...but at least the company still has a strong portfolio and has options. It still makes money and hasn't lost billions and forced to ask for government handouts.

Hopefully it will turnaround its stock and credibility decline, learn from the past and re institute the sound strategic thinking and decision making skills that it had in the past.In summary, I hope that we all learn from this current malaise and re institute the disciplines of sound strategic thinking and decision making.

If you want to learn more read Putting It All Together- a guide to strategic thinking decision making..available on http://www.strategyleader.com/.Bill Rothschild, Rothschild Strategies Unlimited LLC