Top Down Strategy

Wanted to follow-up to my last post on Portfolio Management with an add on the importance of strategic direction from the top.  This month’s HBR has an article discussing “What Only The CEO Can Do” and I thought this comment sums it up perfectly:

Resolving the tension of sometimes divergent short-term and long-term priorities is, as Peter Drucker reminded us, a challenge as old as business itself. Drucker said, “The CEO decides on the balance between yield from the present activities, and investment in an unknown, unknowable and highly uncertain future….it is a judgment rather than [a decision] based on ‘facts.’