The Grass is Greener on the other side. Oh wait a minute!

I was lucky enough to witness part of the great Wildebeest migration from the Serengeti in Tanzania to the Mara in Kenya. Over one million animals make this great journey every year in search of better grazing. A key, and particularly dangerous, bit is when the herds reach the Mara River and risk death from either jumping down the bank or the crocodiles at the bottom.

It is an incredible experience but is not as orderly as I expected. I thought I would see one long line going in one direction but it isn't like that. The Wildebeest initially think the grass is greener on the side and jump down only for some to change their minds and go straight back up again. Others make the full crossing at some risk and then, say or one or two days later, go back again; presumably because they think the grass is actually greener on the first side. 

As I'm a bit sad this amazing experience made me think of an article in the Harvard Business Review called 'The Grass isn't Greener' by Hirsh and Rangan. The central thesis of the article is that many companies are tempted to enter new markets when they are in trouble.  This is frequently a mistake. Based on a survey of 6,138 companies in 65 sectors they conclude "The difference in returns in an industry is several times greater than the difference across industries."  In fact the spread is over four times greater within industries than between them. Despite this many companies look enviously at the other side of the river and decide to enter new sectors, frequently by making acquisitions to bolster returns ( I will resist the obvious analogy between crocodiles and Investment Bankers. Actually I won't, as it's a good one but that's another story ). Many acquisitions end up destroying value and forays into new sectors frequently leave the company in even more trouble than when they started.

Hirsh and Rangan go on to say "In almost every case, a bigger opportunity lies in improving your performance in the industry you're in, by fixing your strategy and strengthening the capabilities that create value for customers and separate you from your competitors," I agree. Not all Wildebeest migrate, some stay in Kenya all year and avoid the treacherous river crossing. You can tell them apart because they are better fed and look healthier. 

So don't be a migrating Wildebeest, make the most of the grass where you are.