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There are 3 tests for sustainability: Do you build value over
time? Can you resist imitators? How do you deal with fundamental
change
in
your
industry?
(Ghemawat 2000)
Part of the value assessment is the leadership, can they get everyone
to commit. The other is capability. In the Navy, strategic success
= capabilities + credibility + the will to act + uncertainty about
how you will act. In business, you may want your competitors uncertain
about your next move, your ability to innovate rather than be predictable.
Sustainability is about managing the mature period in a product's
life cycle. A wrong focus on cost reduction can undermine
your
uniqueness. Cutting costs may be desirable, but watch out! Is
our cost containment a conscious choice to concentrate on activities
and processes that
do not contribute
to your core business or are we emasculating our core competencies?
Sustainability is about using cash flows from operations to manage
debt and ideally, finance new investments. At its heart, cash
flow
from operations sustains your ability to improve your resources.
Where are we going to get the money?
As the industry leader, you should be able to adapt quickly when
others imitate your processes. If not, what has changed?
Supply
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Strategic Focus 
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