Introduction:
Welcome to a curated collection of quotes by Michael Porter, one of the most influential figures in the field of business strategy and competitiveness. As a renowned professor at Harvard Business School and a prolific author, Porter has made significant contributions to our understanding of how organizations can gain a competitive advantage and achieve sustainable growth in today’s dynamic business landscape. His insights on competitive strategy, value creation, and economic development have shaped the way businesses, policymakers, and academics approach strategic management.
Through his extensive research and analysis, Michael Porter has developed frameworks that continue to be widely studied and applied across various industries worldwide. His seminal work, such as the Five Forces framework and the concept of shared value, has provided invaluable guidance to businesses seeking to navigate complex market dynamics and create long-term value for both shareholders and society. Whether you’re a seasoned business leader, an aspiring entrepreneur, or simply intrigued by the principles of strategic management, the quotes gathered below offer profound wisdom and actionable insights from Michael Porter’s vast body of work. Explore, reflect, and be inspired as you delve into the words of one of the foremost strategic thinkers of our time.
As a multisport athlete, I was always fascinated with competition and how to win. At HBS and later at the Harvard Department of Economics, I was drawn to the field of competition and strategy because it tackles perhaps the most basic question in both business management and industrial economics: What determines corporate performance? Michael Porter
I teach in the medical school, the School of Public Health, the Kennedy School of Government, and the Business School. And it’s the best perch… because most of my work crosses boundaries. Michael Porter
I think that, too many times, business has been seen as acting in its narrow self-interest rather than, essentially, contributing more broadly to society. I think a lot of that is unintentional; I don’t think that many managers are deliberately trying to be unethical or are not trying to be sensitive to social needs. Michael Porter
The best CEOs I know are teachers, and at the core of what they teach is strategy. Michael Porter
If your goal is anything but profitability – if it’s to be big, or to grow fast, or to become a technology leader – you’ll hit problems. Michael Porter
Unfortunately, I’m an engineer. I’m always thinking about, what’s the task and how do I get it done? And some of my tasks are pretty broad, and pretty fuzzy, and pretty funky, but that’s the way I think. Michael Porter
In a period of economic downturn, the overwhelming instinct is to pare back, cut costs, and lay off. If you do that, do so with your strategy in mind. The worst mistake is to cut across the board. Instead, reconnect and recommit to a clear strategy that will distinguish yourself from others. Michael Porter
The ability to change constantly and effectively is made easier by high-level continuity. Michael Porter
Billions are wasted on ineffective philanthropy. Philanthropy is decades behind business in applying rigorous thinking to the use of money. Michael Porter
Good leaders need a positive agenda, not just an agenda of dealing with crisis. Michael Porter
Companies understand that if their employees are sick, it’s really expensive. So despite the rhetoric I hear, thank God employers are still in the health-care system. Michael Porter
In America, the problems of poverty and low income, particularly for minorities, are disproportionately focused in the inner cities. Shining a spotlight on the businesses growing in these communities is proof that any community has the potential for entrepreneurship. Michael Porter
Companies operating in urban communities have a tremendous ripple effect. Michael Porter
So companies have to be very schizophrenic. On one hand, they have to maintain continuity of strategy. But they also have to be good at continuously improving. Michael Porter
I’m really puzzled by why people in societies find it difficult to work collaboratively together with other people in societies. Michael Porter
The underlying principles of strategy are enduring, regardless of technology or the pace of change. Michael Porter
You can’t have a healthy society unless you have healthy companies that are making a profit, that are employing people and that are growing. Michael Porter
The essence of strategy is choosing what not to do. Michael Porter
Sound strategy starts with having the right goal. Michael Porter
Technology has given us this wonderful opportunity to have low energy costs. We have to seize that, rather than keep debating and discussing and fighting over it. Michael Porter
As minorities and other immigrant groups become more important to our economy, the inner city is a crucible that gives us an early look at phenomena that are going to be spreading more broadly in the economy over time. Michael Porter
The chief strategist of an organization has to be the leader – the CEO. Michael Porter
Finally, strategy must have continuity. It can’t be constantly reinvented. Michael Porter
Being an American doesn’t mean that you’re guaranteed a high wage. You have to be productive, and we have to create a very low-cost, efficient place to do business, and we’ve let all that slip in America. Michael Porter
The thing is, continuity of strategic direction and continuous improvement in how you do things are absolutely consistent with each other. In fact, they’re mutually reinforcing. Michael Porter
Innovation is the central issue in economic prosperity. Michael Porter
Change brings opportunities. On the other hand, change can be confusing. Michael Porter
There’s a fundamental distinction between strategy and operational effectiveness. Michael Porter
Strategy 101 is about choices: You can’t be all things to all people. Michael Porter
A strategy delineates a territory in which a company seeks to be unique. Michael Porter
America used to be a uniquely productive, low-cost place to do business. We had efficient infrastructure. We had limited regulation. We believed in the market. Michael Porter
The company without a strategy is willing to try anything. Michael Porter
Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different. Michael Porter
The essence of strategy is that you must set limits on what you’re trying to accomplish. Michael Porter
Ultimately, health care fails the most basic test. It’s not organized around the needs of the patient. Michael Porter
Health care historically has been a very siloed field that’s organized around medical specialties – urology, cardiac surgery, and so forth – and around the supply of these specialty services. The patient is the ping-pong ball that moves from service to service. Michael Porter
If all you’re trying to do is essentially the same thing as your rivals, then it’s unlikely that you’ll be very successful. Michael Porter
Millennials are more aware of society’s many challenges than previous generations and less willing to accept maximizing shareholder value as a sufficient goal for their work. They are looking for a broader social purpose and want to work somewhere that has such a purpose. Michael Porter
