Activist investors were busy in 2017. General Electric, AIG, Arconic, CSX, Pandora, and Buffalo Wild Wings are among the companies whose CEOs resigned under pressure from activist investors. Activist investors single out underperforming companies, then force changes, which may include giving the activist a seat on the board, replacing company leaders, divesting a division, or simply cutting costs.
Growth has always been fundamental to business success, but it’s never been more critical than it is now. Rapid changes in technology, shifting customer expectations, disruptive business models and quickly evolving regulations force organizations to innovate quickly and invest in new lines of business that will fuel future growth. The problem is, the same forces that make growth imperative also can make it incredibly daunting.
I see business leaders wrestling with some tough strategic dilemmas: should we disrupt our own business before someone else does, or focus on protecting it? Do we develop new capabilities internally or partner externally? Do we craft a careful plan or simply plunge right in? If you aren’t careful, these uncertainties and doubts can slow you down, while the competition speeds by.