The Coherence Premium

The pressure to grow the top line is so intense that most companies pay too much attention to expansion, and not enough to building strong internal capabilities. A few companies start from the other direction: They figure out what they're really good at and then develop those capabilities (three to six at most) until they've created a set of complementary, best-in-class competencies. For them, strategy then becomes a matter of aligning what they do well with the right marketplace opportunities-and the market rewards them with sustainable, superior returns.