Warlord firms succeed when management keeps the "big hitters" happy and productive. The past and the future are not often items high on the agenda. Consequently, over time, the performance of extreme warlord firms often swings through peaks and valleys. Much management energy is expended in modulating the politically charged environment.
In "Strategy and the Fat Smoker," David H. Maister discusses how warlord firms thrive by ensuring their top performers remain satisfied and effective. The focus of management typically skews toward immediate concerns rather than long-term planning, leading to fluctuations in performance. As a result, these firms often experience cycles of success and struggle.
Furthermore, a significant amount of managerial effort is directed towards navigating the complicated political landscapes within these firms. This constant adjustment to the environment is a key factor that influences their operational dynamics and overall achievements.
