PIMS is an empirical strategy research program based on real-life experiences. It was initiated by General Electric in the 1960s and developed further at the Harvard Business School. Its aim is to identify those strategic factors that influence the economic success of businesses (e.g. the central performance controls) and to use these factors for the process of strategy development. Based on the findings of over 3’500 analysed strategic business units, it can be shown, that over 75 percent of the economic success of businesses is based on the 3 factors of market attractiveness, market position and supply chain fitness. The findings of PIMS hold true irrespective of industry, region or type of product/service and apply consistently through all the different economic circumstances of the 1970s, 1980s, 1990s and 2000s. In this sense they are indeed strategic laws.
Please also refer to PIMS Benchmarking.« Back to Glossary Index