Focusing on a common external threat is often an effective way for a company to execute its business strategy, according to a study, “Executing Corporate Strategy: A Global Study.” However, the challenge is to not create a culture of fear in the process, which could stifle innovation and risk-taking.
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The study of organizations in 20 industry sectors and 20 countries was conducted by American Management Association (AMA) and Institute for Corporate Productivity (i4cp).
“Drawing attention to competitive threats catalyzes employees,” said Jeremey Donovan, chief marketing officer at AMA. “Of course, this must be done with care in order to balance negative effects such as job security concerns. Consider a hot new product launch by a close competitor. In order to respond effectively employees need to have a clear enough mind to innovate.”