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The four things that really matter in business

The Study

A five-year research study separated the facts from the fads in terms of management tools.

The study examined over 200 well-established management practices,over a 10 year period 160 companies and found most management tools had no direct impact on superior business performance.

Only four mattered.

Without exception companies that outperformed the industry excelled at:

1. strategy
2. execution
3. culture and
4. structure.

In addition they supplemented their great skill in these 4 areas with mastery of any 2 of four secondary management practices: talent, innovation, leadership, and mergers and partnerships.

THEY CALLED THIS THE 4 + 2 FORMULA.

The Results

$1 invested for 10 years in a portfolio of 4 + 2 companies produced $11 compared with only $1.50 in other companies. This is 733% larger.