In the blog entry, Lessons That Are Wasted On Entrepreneurs I quoted David Storey... and lots of people got upset... "In spite of volumes of airport lounge books identifying simple recipes for success, the reality is that starting a business is risky. The outcome depends heavily on luck..."
And now there is more support for David's point of view (and the findings from the Magic Million Survey) from The Economist's Which MBA in an article, Flawed research (no longer available), and I quote...
"when measuring what makes for a successful company, one common mistake is to study only those companies that are themselves considered successful...
“When you take a closer look at the companies they study, the accomplishments of the vast majority are just as likely to be due to simple luck. It’s the equivalent of finding someone who flipped a coin seven times and happened to end up with seven heads and asking for her secret.”
RELEVANT LINKS
- Magic Million Survey
- Flawed Research (no longer avaialable)
- Lessons That Are Wasted On Entrepreneurs
5 comments:
Luck = where planning meets opportunity.
Luck = "the more I trained the luckier I got." (Tiger Woods)
Or in simple words: you make your own luck, in sport, in business, in live!
Karin H. (Keep It Simple Sweetheart, specially in business)
I agree with Karen, luck is often due to some sort of planned momentum. One has to define what luck is, and as a result of what context, before categorizing it as the product behind an outcome. Otherwise, what Storey and Raynor say is still nonsensical.
Certainly, the likes of Peters and Collins sold their books based upon some loose modeling of "successful companies." The sucees factors based strictly upon their own perceptions, and who they had worked with or met, when with McKinsey.
However, the "support" you mention for your friend, Robert, when scrutinized, is nothing less or more than the information they criticize. As is invariably the case with academic research, and authored "research" by consultants, one has to look closer at who funded the research.
In this case, the "research" gleaned by Raynor, and gleefully distorted by that fountain of wisdom "The Boston Globe," (coincidentally in the same town as Raynor and his Deliotte practice, next door to his Almer Mater - HBS) was funded by the same source as his new book, his employer, who just happen to be starting a new consulting line based upon that very same research. Indeed.
Again, one has to ask whether Storey has now given up teaching at Warwick that which he renders as futile, or indeed whether Raynor has ever yet dared to venture outside of corporate safety, where the apparently "lucky" get to spend their time risking everything they own on their ideas and dreams?
Perhaps they ought to both collaborate on a new book called, "Build Your Future Now! - sell the family home and take a trip to Vegas"? After all, it is the same principle as setting up business - merely luck!
I love the idea of a book called "Build Your Future Now! - sell the family home and take a trip to Vegas". I'll start writing now...
On a more serious note, your comments about who sponsors research (directly or indirectly) does make a farce of the concept of a business school industry (inc MBA programmes) mostly built on the back of such research...!
Robert
I love the idea of a book called "Build Your Future Now! - sell the family home and take a trip to Vegas". I'll start writing now...
On a more serious note, your comments about who sponsors research (directly or indirectly) does make a farce of the concept of a business school industry (inc MBA programmes) mostly built on the back of such research...!
Robert
I agree with Karen, luck is often due to some sort of planned momentum. One has to define what luck is, and as a result of what context, before categorizing it as the product behind an outcome. Otherwise, what Storey and Raynor say is still nonsensical.
Certainly, the likes of Peters and Collins sold their books based upon some loose modeling of "successful companies." The sucees factors based strictly upon their own perceptions, and who they had worked with or met, when with McKinsey.
However, the "support" you mention for your friend, Robert, when scrutinized, is nothing less or more than the information they criticize. As is invariably the case with academic research, and authored "research" by consultants, one has to look closer at who funded the research.
In this case, the "research" gleaned by Raynor, and gleefully distorted by that fountain of wisdom "The Boston Globe," (coincidentally in the same town as Raynor and his Deliotte practice, next door to his Almer Mater - HBS) was funded by the same source as his new book, his employer, who just happen to be starting a new consulting line based upon that very same research. Indeed.
Again, one has to ask whether Storey has now given up teaching at Warwick that which he renders as futile, or indeed whether Raynor has ever yet dared to venture outside of corporate safety, where the apparently "lucky" get to spend their time risking everything they own on their ideas and dreams?
Perhaps they ought to both collaborate on a new book called, "Build Your Future Now! - sell the family home and take a trip to Vegas"? After all, it is the same principle as setting up business - merely luck!
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