
HBR On Strategy To Grow Profitably, Take It Slow
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Feb 26, 2025 Gary Pisano, a Harvard Business School professor specializing in strategy and sustainable practices, discusses the pitfalls of the 'growth at all costs' mentality prevalent in the tech industry. He emphasizes the need for companies to prioritize sustainable growth strategies over rapid expansion, using examples like Peloton to showcase the consequences of overextension. Pisano advocates for aligning growth ambitions with core values and operational capabilities, highlighting the importance of talent development in fostering long-term profitability.
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Profitable Growth is Key
- Growth is important, but profitable and sustainable growth should be the primary focus.
- Rapid, unsustainable growth can damage the core aspects of a business.
Resource Management for Growth
- Avoid the trap of outgrowing resources with the expectation of catching up later.
- Focus on identifying bottleneck resources and setting growth targets accordingly.
PALS' Growth Strategy
- PALS, a fast-food chain, prioritizes developing store managers before opening new locations.
- This approach ensures that each new store has a capable leader from the start, leading to sustainable growth.

