You can’t anticipate every commitment’s long-term consequences, but you shouldn’t shy away from making commitments. When competitive conditions change, you may be unable to respond effectively-even if you see the threat and know what’s needed. While each decision defines your company’s capabilities now, it also reduces its flexibility in the future.
But like double-edged swords, commitments are dangerous if wielded carelessly. Each involves actions taken today that bind your company to a course of action tomorrow.Ĭommitments shape your business’s identity-defining its strengths and weaknesses, setting its direction, establishing opportunities and limitations, and focusing and energizing employees. You make commitments-R&D investments, public promises to hit growth targets, hiring decisions, joint ventures-every day.
