How can business strategy books mislead you?

Classic business stratrgy books offer tools that seems good in the first glance. However, they don't seem to be practical in the ever changing world of today. That will lead businesses to cumbersome analysis rather that practical decesion making!

More than business strategy books, the best way to learn from peers and "now" successful businesses is to have a fireside chat with the founders - especially talking about the pivotal moments - what was failing, not scaling, PMF not adequate, competition pressures, pressures from VC/PE firms to get to insane growth - and when did they strike the balance or what "bold" or "lucky" bet did they capitalize on. Wish more books offered this ring-side view.

I am surprised that the overwhelming opinion is that business strategy books are useless because they extoll success stories. Surely among the contributors here, there are some that have benefited from what they learned in their business schools, especially the good ones?

Most of the strategy books written only convey half of the actual truth. Every entrepreneurship journey is unique and is tailored to the market, problems you are trying to solve, timing and lessons learned along the way. There is merit in listening to how other entrepreneurs navigated obstacles which will avoid common pitfalls and set a strong foundation to build. The main part is for you to discover by validating, executing and be close to problem solving.

Your business is unique! Recognize that while business strategy frameworks offer valuable insights, they should only serve as a starting point!

Absolutely! One size cannot fit all! Local cultural context is indeed a crucial factor to consider in any business. It’s like trying to navigate a foreign city without a map – you might get lost. Just as understanding the local language and customs can be your compass in a new place, considering cultural nuances in business can guide you to success.

Business strategy books can be immensely valuable, but they can also potentially mislead in several ways: Generalizations, cherry-picked examples, outdated information, overemphasis on a single method, lack of context, author biases, ignoring human factors, hype and hyperbole. o avoid being misled, it's essential to approach business strategy books critically. Consider them as frameworks or ideas to be adapted, rather than as strict rules to follow. Supplement your reading with real-world examples, current case studies, and diverse perspectives to form a well-rounded understanding. Additionally, seeking out books that explore failures and challenges can provide a more balanced view of the complexities of strategic decision-making.

"You can't boil the ocean" was a phrase I heard all the time when trying to raise money at the beginning of my journey as an entrepreneur. Low and behold, 8 years in, and being "global-first" is now an advantage. Every single piece of advice that these books give is meant to be taken with a grain of salt. You know your business better than anyone, so don't fall prey to this idea that "if it worked for them, it could work for me". Take an iterative approach. Be willing to fail. Take lessons from these books, implement them, and keep testing new ideas. There is no one-size-fits-all in anything in life, including entrepreneurship.

Although they can provide valuable insights and useful starting point for developing your own company, business strategy books often offer a 'one-size-fits-all' approach based on outdated information, which may not be suitable or relevant for your specific business context. The dynamic nature of the business environment (including but not limited to industry segment, geography, etc) means that strategies effective in the past may not apply today, and every business has its own set of challenges and opportunities that require a tailored approach.

Acknowledge that business strategies are crafted in dynamic and uncertain environments, and that outcomes are influenced by a LOT of things.

Like it or not there is a certain amount of luck in all situations (be that a business, or your career). Strategy books help you think about the options, perspectives or courses of action, that are open. However, at the end of the day it comes down to execution, and that involves decision making taking into account your own set of variables and circumstance. No playbook can make these for you.

The past few years's events (covid, geopolitical instability, surge of technological advancements, etc.), showed us that the businesses that remained competitive are the ones that quickly adapted their strategies to current situations. A business strategy should be dynamic to a certain extent.

Avoiding the hindsight bias trap requires both awareness and critical actions. Here are some suggestions to sidestep this cognitive pitfall and avoid falling into routine thinking: 1. Before a decision, write down or record what you expect to see how they align with actual outcomes. 2. Encourage feedback and different viewpoints. 3. Play devil's advocate, challenging prevailing ideas or opinions, even if you agree. 4. Focus on the process not just outcomes. 5. Discuss what went right and wrong and what could be done differently. By implementing some of these strategies and fostering a culture of critical thinking, you can minimize the effects of hindsight bias and promote a more nuanced understanding of events and decisions.

Hindsight bias often leads to a downplaying of the uncertainty that decision-makers faced when formulating a strategy. It can create a false sense that the chosen strategy was the only logical choice given the circumstances, neglecting the multiple potential outcomes that were plausible at the time. The presence of hindsight bias can hinder organizational learning and innovation. If the focus is solely on the outcomes of past strategies, there may be a reluctance to experiment with new approaches or acknowledge the inherent uncertainties in strategic decision-making.

The trouble with bias is we remain unaware of it. Confirmation bias is perhaps the most insidious of all. So, advice on how individuals can debias themselves is misplaced. The good news is we can detect bias in others just as others can in us. Thereby lies the solution. Orgnisations that are objective, innovative build practices that leverage others' ability to point out bias in us. Such practices are centred on constructive discussion, over several sessions if necessary, dissent, Pre-mortem, etc. to foster critical thinking. These methods require that leaders and managers slow down decision making. Thoughtful decisions are usually more valuable than quick decisions.

As a business leader or entrepreneur, the most important aspect is to practice humility. Accept that you don't have all the answers and that your beliefs and assumptions can be wrong. This mindset makes you more receptive to new information. Always ask "Why" questions and think from first principles. Periodically take stock of your core beliefs and assumptions. Are they still valid? What evidence supports them? What evidence contradicts them? Talk to new people who can bring a fresh perspective to your viewpoint.

I agree that confirmation bias is a danger, however we must guard against self-doubt on the other end of the spectrum. Finding too many counters to your vision may also come from the lack of vision in others, particularly when you are pursuing something especially innovative. Guard against the echo chamber of confirmation but equally guard against the discouragement of nay-sayers steeped in conventions that you are breaking. Be sober about each.

Having a business book reinforce your existing belief is a red flag, but there's more to the story! Executives struggle with empathy biases that restrict strategic vision, leading to oversights, reactive responses, and missed opportunities. Critical blindspots like status quo, overconfidence, resource, experience, insular culture, priorities, and failure bias prevent understanding competitors and rapidly evolving customer needs. Examples are Popeyes dethroning KFC, and Modelo over Bud Lite beer in the US. In both cases, one can argue that these executives suffered from lack of cognitive empathy and other bias. Here's the point, learn from business books, but stay adaptive or have your rivals fry up your profits and drink away share.

Confirmation bias is one of the more dangerous kinds - and it is easy to fall for. I worked with a software entrepreneur who got a lot of positive feedback from his colleagues as he built out a sophisticated program at great personal expense. Once it was ready, few of his colleagues downloaded it and only one used it ... once. The idea of a Minimal Viable Product (MVP) defined in Reis's Lean Startup offers one antidote. Stop development much sooner - with only the minimal amount of features and functions developed - and see if anyone will pay you to use it. What we say is interesting and what we will pay to use can be very different - and this is one way to find out.

No strategy can account for all variables, especially in a dynamic business environment. Always be prepared for unpredictability and be ready to adapt. What helps is first to identify variables that you can control and start crafting hypotheses to validate. Delve deeper and get into the weeds. Tools like the "5 Whys" technique can be invaluable. Run proof of concepts/prototype to gauge its effectiveness. This reduces risks and allows for adjustments based on real-world feedback. Create feedback loops to gather feedback from customers, employees, partners, etc. This can offer real-time insights into what's working and not. Remember, while unpredictability is inherent in the business, a systematic approach can help navigate uncertainties.

Catchy acronyms and diagrams can be helpful to remember information, but not for utilizing solutions from others situations as solutions to you own. Each problem in business is unique, and while you'll hear "we've all been there", that doesn't mean they have been exactly where you are in the exact same context. 1. Analyze risks completely before making changes 2. Understand the outcome of your proposed solution, and think it all the way through 3. Prepare and analyze risk that arrive when the proposed solution is presented. Just because you are resolving a situation with a solution doesn't mean you aren't creating another situation in the process.

While simplicity is good for general teaching, executives often need to understand the nuances of any strategy. Reading a book can take only a week while understanding the contexts in which a given strategy work can much longer. Business strategy books are often not very exhaustive.

This is one of the fundamental flaws I see with most business books. They necessarily simplify complex topics, but often go too far in their reduction. Business is not as easy as 1-2-3, if it were, everyone would be successful. The very real, day-to-day challenges are often what trip up most business owners.

As an avid reader of strategy books; I believe most focus on a few, successful global companies. Readers see the current company performance to determine their success. Strategy books tend to analyze in hindsight by simplifying it down to a set of frameworks. I have rarely seen a strategy book being written about a company when underperforming. These companies are eulogized once they attain market leadership and prominence. The social side of strategy e.g., creativity, inter-personal dynamics, are becoming increasingly important. Strategy books would become increasingly relevant by a blended narrative between the quantitative rigor and the qualitative aspects of decision making.

Strategy books may inspire, motivate or even help one look at business aspects in different ways. These should be leveraged to help expand the thought process and give us inputs for contemplation. I feel, one must draw out ones own ideas, hypothesis and impressions that may add value to ones business. We ourselves should be the best equipped to do so! Also, sometimes great ideas and strategies fail due to poor planning or implementation. And this should be kept in mind before striking off a business strategy. Our role as strategists can be fulfilled well when there is a good dose of inspiration and one's own creativity, supported by tangible actions for pilot tests as well as a solid implementation plan.

Sometimes Business Strategy books can frighten readers (with Strategy terms and concepts) that #Strategy is very difficult thing to apply. I think it is one of the most dangerous misleading. Instead one should try to understand essence/root of strategy, then she/he will be able to analyze how to apply it in practice.

The best business strategy book, by far, is Michael Porter's "Competitive Advantage" 1985. Start with this one book and ignore every other book that doesn't at least mention Porter in the index.

Business strategy books, while valuable sources of knowledge, can sometimes mislead readers in a few ways. First, they may oversimplify complex real-world challenges, offering one-size-fits-all solutions that may not apply universally. Second, they often focus on past successes without considering evolving market conditions. Third, they might emphasize a single strategy or framework as a panacea, neglecting the need for adaptability and innovation. Finally, books can't replace the real-time, context-specific decision-making required in dynamic business environments. It's essential to read them critically, adapting insights to your unique situation rather than blindly following a prescribed path.

Business books are great for motivation (at least for me) and understanding how some of the biggest companies today made it there. They are, more importantly, a great reminder that there is an insane amount of risk required in starting a business and that the propensity to take on additional risk is required if you want to build something lasting. If I'd followed the advice of the successful people I know when I was starting my business, we would have died a long time ago. Trust yourself, trust your instincts, and keep your eyes open as things are accelerating faster than ever nowadays. In the eternal words of Jay-Z, "The craziest thing we did was never give up."