What contributes to enduring success?

A recent article by Christian Stadler, an Austrian professor, in the Harvard Business Review ( July-August 2007) explains the reasons behind the strong performance of some companies over long periods of time. Measured by total returns for shareholders, these companies fared 62 times better than the general market. The comparison companies which were also good but not “great” beat the market only by a factor of eight. Stadler’s research has through up four key findings:
 The great companies emphasise exploiting existing assets and capabilities over exploring for new ones.
 These companies diversify their business portfolio, taking care to maintain a wide range of suppliers and customers.
 Such companies tell and retell stories of past failures to make sure these mistakes are not repeated.
 They seldom make radical changes and take great care in their planning and implementation.