Michael E Porter - Collected Quotes

"The essence of formulating strategy is relating a company to its environment." (Michael E Porter, "Competitive Strategy", 1980)

"Risk is a function of how poorly a strategy will perform if the 'wrong' scenario occurs." (Michael EPorter, "Competitive Advantage: Creating and Sustaining Superior Performance", 1985)

"But the essence of strategy is in the activities – choosing to perform activities differently or to perform different activities than rivals. Otherwise, a strategy is nothing more than a marketing slogan that will not withstand competition." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Commonly, the threats to strategy are seen to emanate from outside a company because of changes in technology or the behavior of competitors. Although external changes can be the problem, the greater threat to strategy often comes from within. A sound strategy is undermined by a misguided view of competition, by organizational failures, and, especially, by the desire to grow." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Managers must clearly distinguish operational effectiveness from strategy. Both are essential, but the two agendas are different. The operational agenda involves continual improvement everywhere there are no trade-offs. Failure to do this creates vulnerability even for companies with a good strategy. The operational agenda is the proper place for constant change, flexibility, and relentless efforts to achieve best practice. In contrast, the strategic agenda is the right place for defining a unique position, making clear trade-offs, and tightening fit. It involves the continual search for ways to reinforce and extend the company’s position. The strategic agenda demands discipline and continuity; its enemies are distraction and compromise." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Strategy is creating fit among a company’s activities. The success of a strategy depends on doing many things well - not just a few - and integrating among them. If there is no fit among activities, there is no distinctive strategy and little sustainability. Management reverts to the simpler task of overseeing independent functions, and operational effectiveness determines an organization’s relative performance."  (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"Strategy renders choices about what not to do as important as choices about what to do. Indeed, setting limits is another function of leadership. Deciding which target group of customers, varieties, and needs the company should serve is fundamental to developing a strategy. But so is deciding not to serve other customers or needs and not to offer certain features or services. Thus strategy requires constant discipline and clear communication. Indeed, one of the most important functions of an explicit, communicated strategy is to guide employees in making choices that arise because of trade-offs in their individual activities and in day-to-day decisions." (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)

"There's a fundamental distinction between strategy and operational effectiveness. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing."  (Michael E Porter, "What is Strategy?", Harvard Business Review, 1996)