Failsafe Strategies: Profit and Grow from Risks That Others Avoid

Chapter 6. Organizations That Can Benefit from the Outcome-to-Objectives Framework

Organizing for Taking Risk

Polaroid, AOL, Palm—these companies developed a market-changing product but could not follow through with an encore because they did not take the next risk in developing a new business model. Most of these companies basically tried to focus on their past successes and strengthen existing competencies rather than develop the next set of capabilities. In contrast, the successful strategies of some of the world's best companies can be explained by the outcome-to-objective framework. Very simply, these companies take risks that others do not because of their ability to anticipate and avoid the risks while reaping the rewards. Moreover, they ...