174: The Obvious Answer Is Often Wrong | Costas Markides, London Business School Professor

What often seems like an obvious answer to a problem is usually not the right answer. In the ‘60s and ‘70s, 1000s of companies diversified, only to refocus decades later. An obvious explanation for this was that the companies had made a mistake. But an alternative explanation was that the companies were right to diversify when they did and then right to refocus when they did because the market had changed.

Just because a company communicates a particular strategy in public, does not mean that they aren’t communicating a different, or more refined, inspiring, strategy privately. To get at the heart of the onion, as Costas said, we need ask at least five Why’s.

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.