Recent research by Nick Bloom, Raffaella Sadun, and John Van Reenen suggests the value of manager competence is underestimated. Strategy requires operational excellence to be achieved: building stronger leaders with operational acumen can be a market differentiator. #leadershipdevelopment #leadership #hbr #strategy #operationalexcellence #businessperformance
CEO, Highland Performance Solutions | Executive Coach | Forbes & HBR Contributor | Speaker | Philanthropist
Many of us in leadership are taught to focus on strategy as the ultimate differentiator—staking out a unique position in the market to stay ahead. But recent research challenges the assumption that operational effectiveness is "easy to replicate" or less critical than strategy. In fact, the study highlights that core management practices—like setting targets, performance monitoring, and talent management—are significant drivers of productivity, profitability, and long-term success. Even more compelling? These practices are harder to copy than we think, must be developed and often represent a lasting competitive advantage. Key insights: *Better-managed firms outperform on metrics like growth, profitability, and innovation. *Operational effectiveness isn’t a given—there are vast differences in how well organizations execute basic tasks. *Strong management practices require consistent investment and leadership commitment, but they yield substantial returns. The takeaway: A brilliant strategy is meaningless without solid execution. Leaders need to treat operational excellence as a strategic complement, not a secondary priority. This resonates deeply as we navigate today’s volatile and uncertain business landscape. To thrive, companies must master both the big picture and the foundational processes that drive day-to-day success. #Leadership #Management #Strategy #OperationalExcellence #BusinessPerformance #leadershipdevelopment