Musk has been successful at this in the past. Business units and frontline employees will likely end up making their own choices about what to prioritize, or kick otherwise small decisions up to leadership, distracting them from higher-level strategy. Without a clear priority, leadership cannot formulate a strategy that aligns all aspects of the organization. In practice, failing to identify a primary objective almost always means a company ends up pursuing contradictory ones - leading to an inefficient strategy at best and a self-defeating one at worst. Managers of innovative firms always face these tradeoffs. This could be long-term revenue growth or short-term profitability existing customer value or novel new products. Principle 1: Prioritize an objective.īefore designing and implementing a new strategy, a new leader needs to prioritize a clear objective. Our view is that, regardless of what path Musk decides to take, effective strategic change will require that Musk follow five key principles. Particulars aside, though, there is a framework of best practices for how to implement and execute on a strategy that fundamentally changes the course of a technology business - one that any leader would do well to follow. For another, Twitter epitomizes the ongoing challenges in the business of social media: It faces questions of how to monetize, what content it should moderate (or censor), and what role it should play in society to allow it to create the most value. For one, Musk’s experience is primarily with building new businesses, not transforming existing ones. Granted, this situation has its own unique challenges. What Musk will need to overcome is not unlike the challenge faced by an outside executive joining a new company, a private equity firm on a new deal, or a general manager overseeing an acquired business unit on behalf of a conglomerate. (Probably.) If the deal goes through, the next big question is: How will he change the company? Musk’s specific goals for Twitter have been hard to pin down, but the problem of how to transform the strategy of a technology business is a familiar one. After months of uncertainty, Elon Musk appears to be moving ahead on a deal to acquire Twitter for $44 billion.
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