Many popular thinking in the business world is formed delusions - fundamental errors in judgment that distort our view of the company. One of the most important misconceptions is the halo effect, which is the tendency to attribute many of the positive traits of successful companies and the authority to do the opposite when companies falter. Halo effect, in turn, contaminate the data used in many large-scale studies of the company, including some of the most popular of recent studies. As a result of misplaced belief that companies can follow a formula for high performance, when in fact the performance is better understood as a relative, not absolute. To achieve high performance, companies must do more than follow the formula -. They need to differentiate themselves from the competition by making a choice in the face of uncertainty "Hide
by Philip M. Rosenzweig Source: California Management Review 16 pages. Publication Date: August 1, 2007. Prod. #: CMR369-PDF-ENG
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