Michael Porter

For the American wrestling ring announcer, see Michael Porter (professional wrestling). For the Australian rules footballer, see Michael Porter (footballer). For the English footballer, see Mick Porter.
Michael Eugene Porter
Born (1947-05-23) May 23, 1947
Ann Arbor, Michigan, United States
Alma mater Princeton University
Harvard Business School
Contributions Porter hypothesis
Porter forces[1]
Porter's four corners model

Michael Eugene Porter (born May 23, 1947)[2] is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of the founders of the consulting firm The Monitor Group (now part of Deloitte).

Early life

Michael Eugene Porter received a BSE with high honors in aerospace and mechanical engineering from Princeton University in 1969, where he graduated first in his class and was elected to Phi Beta Kappa and Tau Beta Pi. He received an MBA with high distinction in 1971 from Harvard Business School, where he was a George F. Baker Scholar, and a PhD in business economics from Harvard University in 1973.

Porter said in an interview that he first became interested in competition through sports. He was on the NCAA championship golf squad at Princeton and also played football, baseball and basketball growing up.[3]

Porter credits Harvard professor Roland "Chris" Christensen with inspiring him and encouraging him to speak up during class, hand-writing Porter a note that began: "Mr. Porter, you have a lot to contribute in class and I hope you will." Porter reached the top of the class by the second year at Harvard Business School.[3]

At Harvard, Porter took classes in industrial organization economics, which attempts to model the effect of competitive forces on industries and their profitability. This study inspired the Porter five forces analysis framework for analyzing industries.[3]

Career

Michael Porter is the author of 18 books and numerous articles including Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations, and On Competition. A six-time winner of the McKinsey Award for the best Harvard Business Review article of the year, Professor Porter is the most cited author in business and economics.[4]

Porter stated in a 2010 interview: "What I've come to see as probably my greatest gift is the ability to take an extraordinarily complex, integrated, multidimensional problem and get arms around it conceptually in a way that helps, that informs and empowers practitioners to actually do things."[3]

Competition among nations

Porter wrote "The Competitive Advantage of Nations" in 1990. The book is based on studies of ten nations and argues that a key to national wealth and advantage was the productivity of firms and workers collectively, and that the national and regional environment supports that productivity. He proposed the "diamond" framework, a mutually-reinforcing system of four factors that determine national advantage: factor conditions; demand conditions; related or supporting industries; and firm strategy, structure and rivalry. Information, incentives, and infrastructure were also key to that productivity.[5]

During April 2014, Porter discussed how the United States ranks relative to other countries on a comprehensive scorecard called "The Social Progress Index", an effort which he co-authored.[6] This scorecard rated the U.S. on a comprehensive set of metrics; overall, the U.S. placed 16th.[7]

Healthcare

Porter has devoted considerable attention to understanding and addressing the pressing problems in health care delivery in the United States and other countries. His book, Redefining Health Care (written with Elizabeth Teisberg), develops a new strategic framework for transforming the value delivered by the health care system, with implications for providers, health plans, employers, and government, among other actors. The book received the James A. Hamilton award of the American College of Healthcare Executives in 2007 for book of the year. His New England Journal of Medicine research article, "A Strategy for Health Care Reform—Toward a Value-Based System" (July 2009), lays out a health reform strategy for the U.S. His work on health care is being extended to address the problems of health care delivery in developing countries, in collaboration with Dr. Jim Yong Kim and the Harvard Medical School and Harvard School of Public Health.

Consulting

In addition to his research, writing, and teaching, Porter serves as an advisor to business, government, and the social sector. He has served as strategy advisor to numerous leading U.S. and international companies, including Caterpillar, Procter & Gamble,[8] Scotts Miracle-Gro, Royal Dutch Shell, and Taiwan Semiconductor. Professor Porter serves on two public boards of directors, Thermo Fisher Scientific and Parametric Technology Corporation. Professor Porter also plays an active role in U.S. economic policy with the Executive Branch and Congress, and has led national economic strategy programs in numerous countries. He is currently working with the presidents of Rwanda and South Korea.

Michael Porter is one of the founders of The Monitor Group strategy consulting firm. It was sold to Deloitte Consulting in 2013 through a structured bankruptcy proceeding.

Non-profit

Michael Porter has founded three major non-profit organizations: Initiative for a Competitive Inner City – ICIC[9] in 1994, which addresses economic development in distressed urban communities; the Center for Effective Philanthropy, which creates rigorous tools for measuring foundation effectiveness; and FSG-Social Impact Advisors, a leading non-profit strategy firm serving NGOs, corporations, and foundations in the area of creating social value. He also currently serves on the Board of Trustees of Princeton University.

Honors and awards

In 2000, Michael Porter was appointed University Professor at Harvard, the university's highest recognition awarded to Harvard faculty.[10] In 2009, he was awarded an honorary degree from McGill University.

Criticisms

Porter has been criticized by some academics for inconsistent logical argument in his assertions.[11] Critics have also labeled Porter's conclusions as lacking in empirical support and as justified with selective case studies. They have also claimed that Porter fails to credit original creators of his postulates originating from pure microeconomic theory.[4][12][13][14] Others have argued Porter's firm-level analysis is widely misunderstood and mis-taught.[15]

Works

Competitive Strategy
Domestic Health Care
Global Health Care

See also

References

  1. ↑ http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1
  2. ↑ date & year of birth, full name according to LCNAF CIP data
  3. 1 2 3 4 Kiechel, Walter (2010). The Lords of Strategy. Harvard Business Press. ISBN 978-1-59139-782-3.
  4. 1 2 False Expectations of Michael Porter’s Strategic Management Framework, by Omar AKTOUF, Dr. HEC Montréal
  5. ↑ Porter, Michael E. Porter (1990). The Competitive Advantage of Nations. Free Press. ISBN 0-684-84147-9.
  6. ↑ CNN-GPS with Fareed Zakaria-Michael Porter on GPS: Is the U.S. #1? April 20, 2014
  7. ↑ Social Progress Imperative.Org - Retrieved May 2014
  8. ↑ Playing to Win: How Strategy Really Works. Harvard Business Review Press.
  9. ↑ "Initiative for a Competitive Inner City".
  10. ↑ Colvin, Geoff (October 29, 2012). "There's No Quit in Michael Porter". Fortune. 166 (7): 162–166.
  11. ↑ Sharp, Byron; Dawes, John (1996), "Is Differentiation Optional? A Critique of Porter's Generic Strategy Typology," in Management, Marketing and the Competitive Process, Peter Earl, Ed. London: Edward Elgar.
  12. ↑ Speed, Richard J. (1989), "Oh Mr Porter! A Re-Appraisal of Competitive Strategy," Marketing Intelligence and Planning, 7 (5/6), 8–11.
  13. ↑ Yetton, Philip, Jane Craig, Jeremy Davis, and Fred Hilmer (1992), "Are Diamonds a Country's Best Friend? A Critique of Porter's Theory of National Competition as Applied to Canada, New Zealand and Australia," Australian Journal of Management, 17 (No. 1, June), 89–120.
  14. ↑ Allio, Robert J. (1990), "Flaws in Porter's Competitive Diamond?," Planning Review, 18 (No. 5, September/October), 28–32.
  15. ↑ Spender, J.-C., & Kraaijenbrink, Jeroen. (2011). Why Competitive Strategy Succeeds - and With Whom. In Robert Huggins & Hiro Izushi (Eds.), Competition, Competitive Advantage, and Clusters: The Ideas of Michael Porter (pp. 33-55). Oxford: Oxford University Press.
  16. ↑ Bedeian, Arthur G.; Wren, Daniel A. (Winter 2001). "Most Influential Management Books of the 20th Century" (PDF). Organizational Dynamics. 29 (3): 221–225. doi:10.1016/S0090-2616(01)00022-5.
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