Those unsubstantiated dominant beliefs are:
- All growth is good
- Bigger is always better
- Businesses must grow or die
- In the public markets, public companies must grow continuously in a linear fashion with ever-increasing quarterly returns. Unfortunately, those four beliefs are not based in any science, any empirical data or business reality. They are at best half truths and some are pure fiction.
He replaces these beliefs by the following more realistic beliefs:
- Growth can stress a business: Too much growth can be bad
- Bigger is not always better: The bigger you become, it puts you into different competitive spaces, and therefore you have bigger and better competition.
- What you have to do is constantly improve your customer value proposition better than the competition.
- Growth is not a continuous linear function: research shows companies generally don't continuously grow for years in a row.
Question: does this make sense? If it does, how should we change corporate governance, business education, and finance and business journalism? How can we achieve this?