In the mid-1980s, McDonald’s introduced the McPizza in an attempt to capture dinner-time market share from Domino’s and Pizza Hut. However, the experiment was short-lived. The pizza took too long to cook, the large pizza box didn’t fit through the drive-thru window…and it was off-brand. Ultimately, the strategy drifted too far from McDonald’s operating model and core competencies – speed, consistency, and drive-thru efficiency.1
Strategy drift often arises as organizations seek new avenues for growth. That same pattern can appear in private credit, where this dynamic is commonly triggered by the need to quickly deploy large amounts of newly raised capital.
In the latest article from our subsidiary NXT Capital, we explore how strategy drift in private credit frequently emerges and how NXT Capital seeks to maintain a consistent, disciplined investment strategy.
1Lucas Reilly, “The Short, Strange Life of McDonald’s Pizza,” Mental Floss, June 26, 2015, https://www.mentalfloss.com/food/pizza/short-strange-life-mcdonalds-pizza.