Diversifiction and Diversifact

by Henry Mintzberg, Sumantra Ghoshal


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Fall 1994

Volume 37
Issue 1


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Abstract

A spinning top is an apt metaphor for diversification that works. It requires sitting on a base of strong business, possessing substantial bulk in the form of planning systems and adapting mechanisms, and receiving thrust from the central management-all held together by a viable culture and maintaining its balance through its dynamic energy. This article develops the metaphor, links it to a number of corporate experiences, discusses the different tradeoffs in keeping a diversified enterprise in balance, and suggests a sequence by which necessary capabilities can be developed.

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