Harvard Professor Discovers Formula for Sustained Business Success

A simple formula of 4+2 may be the secret of sustained business success according to Harvard Business School professor, Nitin Nohria. Nohria and collegues William Joyce and Bruce Roberson analyzed 160 businesses for common successful management practices. The result is "What Really Works: The 4+2 Formula for Sustained Business Success" (HarperBusiness, May 2003).

As stated by the authors, "The study found that just eight practices, four primary and four secondary, make all the difference. Winning companies achieved excellence in all four of the primary practices, plus two of the secondary ones--what we came to call the 4+2 formula for success. Losing companies failed to do so. The four primary management practices we identified are: strategy, execution, culture, and structure. The four secondary areas are talent, leadership, innovation, and mergers and partnerships."

Does your business excel in any of these areas? Does 4 + 2 apply to small business? Yes. However, the primary management practice of culture may be less applicable and replaced by communication with suppliers and customers. The secondary area of mergers may be more joint ventures and strategic alliances. Read the excerpt from “What Really Works: The 4+2 Formula for Sustained Business Success”, in HBS Working Knowledge.