One of the unfortunate consequences of a company or professional doing well is the halo effect that gets associated with it. Whenever a company tends to do well, numerous commentators praise the company for its customer focus, series of acquisitions and the corporate strategy applied. But the moment it goes sour, the same researchers will blame all these factors, plus its talent management practices. Such a tendency has been observed at US tech giant Cisco as well as Swiss- Swedish engineering giant ABB. Core competencies and the corporate culture are difficult to measure. The really good managers know how to assess themselves independently, rather than from the prism of the company success alone. Instead of getting deluded by absolute performance figures, one must study the relative effects. Especially in the modern times, no success is absolute, thanks to the constant churn of digital technologies. A clear thinking is needed to ensure strategic insights get implemented. Uncertainty will be prevalent irrespective of how the planning is done, so it needs to be embraced rather than fought against. The inputs need be separated from the outcomes realized.

Source:https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-halo-effect-and-other-managerial-delusions

Uploaded Date:07 January 2019