People believe that management consultants are mostly useless parasites. Up until about 1980 it was consultants more than anyone else who came up with the critical concepts behind strategy. The history of strategy suggests there are lots of things consultants can do for a company that the company can't typically do for itself.

People believe that management consultants are mostly useless parasites. Up until about 1980 it was consultants more than anyone else who came up with the critical concepts behind strategy. The history of strategy suggests there are lots of things consultants can do for a company that the company can't typically do for itself.

The business schools could do a better job teaching face-to-face management, the actual work of organizing and helping along the efforts of others in the organization. The more quantitative disciplines have gotten more attention, often more research dollars. Areas like organizational science or, even mushier, leadership have had more trouble settling on what it's important to teach, and how. It's rather like strategy itself, which as I argue in the book, has had trouble through most of its history figuring out how to incorporate people, their motivation and ability, into its calculations.

People believe that companies have always had strategies, dating back at least to likes of Henry Ford or Andrew Carnegie, maybe to the contractors who built the Pyramids. As it turns out, it was only in the 1960s and 1970s that a new breed of "business intellectuals" began to develop the intellectual framework that allowed companies to look at the three "C's" of any good strategy - namely their costs, customers, and competitors - in an integrated way.

I argue that once it became clear that the most important function of the CEO was to develop and enact the corporate strategy, that often had the effect of distancing him from people below him in the organization. It also encouraged the idea that if a CEO were a great strategist for a company in one industry, he would probably be a great strategist in another industry. And that usually hasn't proved to be the case.

People say that ideas aren't important in business. Okay, people say, maybe an idea for a new product, but the rest is all execution, making it happen. Not so. As the strategy revolution demonstrated, ideas can be the key tools for making your business competitive.

The experience curve says that your costs should probably decline by 15% or 20% with every doubling in your experience making a product, approximately how many of them you turn out. It also says that if you have the biggest market share, meaning the most experience of anybody in your competitive set, you should have the lowest costs, and the resultant capability to underprice your competitors, maybe forever. The abiding lesson of the experience curve is that companies need to discipline themselves to keep reducing their costs, year in, year out, if they are to remain competitive.