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"How corporate truths
become competitive traps"

by Eileen C. Shapiro
John Wiley & Sons, 1991
229 pages hardcover

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These eight deadly assumptions are believed by people inside the organization as the "truth". Unfortunately, people inside the frame cannot see the whole picture. The author discusses the eight "truths" and provides the reader with the framework with which to evaluate his own corporate "truths". The following summaries are from the beginning of each of the eight chapters.


Chapter 1

Assumption: We act on the facts.

The Reality: Gut instincts usually win, even when they're wrong.

The Result: "Business as usual" even though the world is changing and despite announcements of bold change and new initiatives.


Chapter 2

Assumption: We know what the facts are.

The Reality: People often don't see what is right in front of them.

The Result: Signs of important new opportunities or threats are missed until its too late.


Chapter 3

Assumption: We have all the facts we need.

The Reality: Many of the people who have the facts don't speak up.

The Result: The managers are the last to know about some developing problem or threat, or never know about some potential opportunity.


Chapter 4

Assumption: We know How to win in our business.

The Reality: The business strategy is mostly on autopilot.

The Result: Managers lose control of their business's future.


Chapter 5

Assumption: Of course we know what our product is. or We know what the customer wants.

The Reality: It's remarkably easy to deliver a set of benefits that customers don't value highly or to miss some that they do.

The Result: The product does less well than expected or the company loses opportunities it could have had (and may never even know it).


Chapter 6

Assumption: We know how to make a buck.

The Reality: Many managers don't have a clear idea about the economic equation for providing the best deal profitably to their target market.

The Result: The company experiences unexpected loses of share, margin or both.


Chapter 7

Assumption: We know what our employees want.

The Reality: Most companies misread the internal market

The Result: Both the employees and the company lose.


Chapter 8

Assumption: Everyone knows what to do and how to do it.

The Reality: Each person in an organization makes on the order of a hundred decisions a day (but not necessarily the right ones).

The Result: The company's people can become a competitive disadvantage.


Truth may not be what it seems at first glance.

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