The 4 Signs of a Good Strategy

I teach a strategy course for designers, and one of my jobs is giving feedback on strategies. And it is NOT easy.

After years of evaluating strategies, I've developed four checks that I use to ensure that a strategy is as effective as possible.

I think they will give you some insights into good strategy design.

The 4 D's of (Good) Strategy Design

Differentiation: Is the strategy different from the competition?

Strategy is about doing things differently.

You won't benefit from the power of strategy if your strategy is generic or too similar to the competition. A strategy helps you avoid competing entirely by carving out a piece of the market that you can own and grow. Even if you take inspiration from another company in a different industry, try to be the only company in your market doing so.

Nokia used to be the most famous phone maker in the world, and their cheap, durable phones were the best in the market. However, when Apple initially succeeded with expensive, breakable phones, Nokia started making phones like Apple. Their strategy to be “better than Apple at being Apple” was doomed to fail. Ultimately, they lost almost all of their market share to Apple. Some of the world's most famous companies have lost billions by developing strategies that aren’t different enough from their competitors.

Desirability: Does the strategy aim for a desirable future?

When people want the strategy, execution is easier.

Your strategies might make sense, but that doesn’t mean people will be excited to implement them. Execution is probably the most challenging part of a strategy project, so ensure you have something people are eager to implement. Desirability might mean aligning with larger consumer trends, embracing innovative working methods, or adapting the strategy to the region’s consumer preferences. A lack of desirability might mean slow adoption, internal pushback, and negative feedback. Seek feedback early and often to ensure you have a desirable strategy.

Starbucks is an excellent example of a desirable strategy. Their initial strategy was to create “third places” in the United States where people could congregate and think outside work and home. Consumers loved this strategy because it fulfilled a real need for public spaces in the U.S. Companies get free press and momentum when they create a desirable strategy.

Doability: Is it doable to implement the strategy?

Align your strategy with the organization’s capabilities.

Don’t get carried away with desirability to the extent that you can’t execute the strategy. You want a strategy that fits your company's skills and setup. Strategy consultants often make the mistake of pushing for a strategy that doesn’t fit the culture and talent in the organization, so make sure your strategy is feasible and aligns with the company's culture.

Southwest Airlines' low-cost flight strategy is an excellent example of a doable strategy. Southwest’s initial strategy was to compete with buses rather than other airlines. They could have stopped with that aspiration, but they didn’t. They made the strategy doable by designating what they would and wouldn’t do. They decided they had to cut a lot if they wanted to make their flights low-cost and competitive with buses. They cut in-flight meals, lounges, and flight options to make their strategy doable. Sometimes, your strategy is only doable by deciding what you won’t do. A doable strategy ensures your strategy doesn’t become a lofty aspiration that employees ignore.

Defendability: Will the strategy's advantage be defendable?

A strategy should be difficult for competitors to copy.

Since strategy is all about differentiating, you want to stay differentiated. Your strategy should give you a lasting, sustainable advantage over your competitors, not just a brief boost that can be easily copied. This D is last because it’s the hardest. Finding ways to generate lasting advantages is very difficult, and for many companies, defending your strategy might be a continuous battle. You can improve your defendability with anything from patents to re-brands to custom infrastructure.

Apple’s strategy for a seamless user experience on any device is defended by its investment in the Genius Bar and thousands of Apple retail stores. This free service for Apple customers helps fix any problems in the user experience so that even people who aren’t tech-savvy can buy an iPhone or a Mac without fear of technical problems. The software platforms also provide dependability as the software and hardware is controlled by Apple, which helps improve the user experience's seamlessness. Competitors like Android can’t even begin to compete because they don’t have the stores, the repair area, or the total control over the operating system between hardware and software. A defendable strategy provides a lasting advantage over the competition and can’t be copied easily.

The 4 D's hold you to a high standard so that your strategy has the best possible chance of succeeding.

If you want to learn to become a strategy designer yourself, check out my strategy course for designers.

Until next time, y'all!

-Jeff Humble

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This article was originally published on Jeff's blog. Read the full version here