Ten seemingly logical excuses for clinging to failed strategies

On August 20th, Christine Kane wrote a great post titled "9 seemingly logical excuses for clinging to clutter."  Although she wrote it about clutter at home, it got me thinking about how cluttered many of our business strategies are - full of bits and pieces that no longer make sense, that sap our energy and resources, and make it hard to find the really good stuff.  Based on Christine's list for the home, here is my list of excuses for clinging to failed business strategies.

1. "Guilt."  We fear we are bad people if we let go of the founder's strategy, or if we close the company's first (and badly outdated) factory, or if we sell that unwanted division that came with the last merger.
2. "I spent so much on it!"  We get trapped into the bemoaning sunk costs, and are determined to make a bad investment pay off - no matter what it costs.
3. "I might need this someday."  This applies to spare parts languishing in the storeroom and to spare divisions, waiting for a strategy that never comes.  For example, I once worked with a company that purchased a factory to make paper for magazines.  The factory was the only one to make such paper in the company, but the CEO was convinced that segment was a great one to enter.  Six years later, after years of losses, the factory was finally closed.
4. "I might do this someday," or "We might do something to fix this division someday."  How many pieces of your business are going down the drain, waiting for the someday when resources will be available to fix them up?  Forget it!  Give 'em to Aunt Mabel.
5. "It looks good if people see that I have this."  In the business world, this translates into, "Stock analysts will be impressed that we own this division."  Keep what you need to deliver great value to your customers, employees and owners.  Ditch the rest.
6. "I don't know where it goes."  Do you have one of those departments that gets constantly shifted from one division to another, because no one really wants it?  May it just doesn't belong inside your company at all.
7. "Things have energy."  Strategies and divisions have energy, too.  Divisions can energize your results, or sap your resources.  Get rid of the sappers, in order to free up energy and resources to grow the energizers.
8. "But I never wore it!"  You have failed to realize the potential of some of your divisions or products.  At home, you shouldn't keep that dress that will only fit if and when you lose 900 pounds.  In business, don't keep those bits of your business that will only fit if and when you achieve the impossible.
9. "There's too much stuff!"  Yes, most of us have a lot of work to do to declutter our business and our strategy.  Often it's easier to ignore the big questions and just keep on trying to bail out a leaky boat.  Better to start fixing things one step at a time.  Don't let an overwhelming mess keep you from attacking problems.
10. "I don't know what I love or want!"  Perhaps the biggest reason companies have cluttered strategies is lack of clarity and focus about what they are trying to become.  As Christine suggests for our homes, start by getting rid of what you don't want.  As you declutter your business, you will begin to see what you do want.  You may get smaller at first, but you will be positioning yourself for strong growth once the clutter is gone.

[Note:  Any quotes in blue are direct quotes from Christine's blog post.]

[Updated 25Aug07 with correct spelling for "seemingly" in the title.]