Sometimes you find great research in the most unlikely of places,  the writer was reading The Leaders Guide to Storytelling by Stephen Denning, John Wily & Sons 2005. The book is about how management can use the art of storytelling to make better presentations. Mr. Denning introduced some figures

Only 10% of all publicly traded companies have provided themselves able to sustain for more than few years a growth trajectory that creates above average shareholder returns.

Less than 10% of major innovations in large corporations are successful.

The multi-billion dollar mergers and acquisitions enjoys a success rate of adding value to a company of around 15%.

If you can find a successful company where management does not get too many big ideas, you do not have to worry. The emphasis on the 7 Deadly Strategies is to show management in all industries make blunders which costs investors money.  Not all the strategies are wrong, some maybe good – if the values and processes of the two companies are similar.

One of the prime reasons why the above results happen are yes men.  Many Chairs/CEOs  expects to hear yes to their idea(s) without reasonable discussions (or lots of yes men or few who have a vested interested in not asking questions). The authors of the book Billion Dollar Lessons by Paul Carroll and Chunka Mui recommend on a revolving basis, boards or senior management have a devil’s advocate to ask questions, to ask about what happens if the growth does not continue and to ensure  the what were they thinking? result does not happen.

There are always more questions than answers, till the next time – to raising questions