Overcoming the divestment trauma
Why do so many firms have unfocused business portfolios? Too often, firms pay more attention to adding new businesses to accelerate growth than to divesting existing activities that do not provide the desired results. It is (apparently) easier to add another product category than to gain market share in an existing category. Many managers find it hard to turn down creative ideas, so they let colleagues continue to develop them. At some point – without a deliberate, informed decision – the ideas become too big to stop. On the contrary, it seems to be impossible to build a reputation, a career ...