4 Rules for Diversifying Your Business.

This article discusses the benefits and strategies of diversifying a business for growth. The author argues that diversification is often overlooked by CEOs and boards due to the perception that it is risky and can harm the company. However, the author presents four rules for successful diversification: focusing on the business unit, putting the units in charge of strategy, appointing the right unit leaders, and creating a unit growth culture. The article emphasizes the importance of adopting a business-unit perspective and delegating tasks to divisional management. It also highlights the significance of having skilled unit leaders and fostering an entrepreneurial and risk-accepting organizational culture. The author encourages businesses to embrace diversification as a means of pursuing different opportunities and achieving growth. [Extracted from the article]