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“Hedging is expensive and dilutes commitment.”

Andrew S. Grove

Source

Only the Paranoid Survive (Primary source)
Andrew Grove’s Only the Paranoid Survive stands as a seminal meditation on corporate survival in an age of relentless technological upheaval. Published in 1996, when the digital revolution was reshaping the very foundations of American economic life, the book distills Grove’s hard-won wisdom into a theory of what he termed “strategic inflection points”—those epochal moments when the fundamental rules governing a business undergo tectonic transformation.

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“If competition is chasing you (and they always are—this is why "only the paranoid survive"), you only get out of the valley of death by outrunning the people who are after you. And you can only outrun them if you commit yourself to a particular direction and go as fast as you can. You could argue that, since they are chasing you, you should give yourself all sorts of alternative directions—in other words, hedge. I say, "No." Hedging is expensive and dilutes commitment. Without exquisite focus, the resources and energy of the organization will be spread a mile wide—and they will be an inch deep.”

Andrew S. Grove

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