Not following the 70-20-10 rule in business can lead to several potential risks. Firstly, it can result in an imbalance in resource allocation, which can hinder the growth and development of the company. Overinvestment in one area can lead to neglect in others, potentially causing missed opportunities or weaknesses in the business structure. Secondly, it can lead to a lack of innovation. The 70-20-10 rule ensures that a portion of resources is dedicated to transformational innovation, which is crucial for staying competitive in the rapidly evolving business landscape. Lastly, it can lead to financial instability. The rule provides a guideline for safe and balanced investment, and not following it can lead to financial risks.
Why do so many perfectly managed companies fail? Inspired by the seminal work of author Clayton Chri...
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