Nate’s Notes 174: The Obvious Answer Is Often Wrong | Costas Markides London Business School Professor

I love the lessons Costas shared.

What often seems like an obvious answer to a problem is usually not the right answer.  For example, in the ‘60s and ‘70s, thousands of companies diversified, only to refocus decades later. An obvious answer for why this happened was that the companies had made a mistake. But an alternative explanation is that the external environment had changed. Maybe the companies were right to diversify when they did and then right to refocus when they did.

This lesson about obvious answers was reinforced for Costas in the classroom recently. Just because a company communicates a particular strategy in public, does not mean that they aren’t communicating a different, more refined, inspiring, strategy privately.

To get at the heart of the onion, as Costas said, we need to ask at least five Why’s?

And finally, I love Costas’ warning that knowing something isn’t the same as doing it. Managers know they should differentiate themselves. Yet data suggests that 92% of managers imitate rather than differentiate.

To close the knowing/doing gap, Costas suggests we start small, develop a strategy, work hard, and try to turn behaviors into habits.

In summary, challenge the obvious answers. Repeatedly ask Why? And then work to close the knowing/doing gap.

All simple ideas. Please take them seriously.

Costas Markides Bio:

Costas Markides, professor of strategy at the London Business School, is one of the world’s foremost experts on strategy and innovation.

He examines how companies can create a culture of continuous innovation and the role that individual managers play in making a company more innovative.

Costas is the author of four books on strategy and innovation, he was listed by Forbes.com as one of the world’s most influential management gurus, and has served as a Fellow of the World Economic Forum in Davos.

Costas received his BA and MA in Economics from Boston University, and his MBA and DBA from Harvard Business School.