Finding the Essence of Strategy
When Jan Kiekeben asked me about the core message for a talk on strategy, it sparked a deeper discussion on the subject. The following article will take you on a journey to understand my thinking on the way to a final quote.
The Vision-Strategy-Execution Triad
First of all, strategy cannot exist in isolation. It thrives within the synergy of vision and execution. This dynamic interplay forms a triad where each element supports and enhances the others:
But why is strategy so challenging? I believe it's complex, not necessarily complicated, and there are five common myths that contribute to its perceived difficulty.
Myths About Strategy – And How to Fix Them
1. Fluffy Vision Statements
Vision statements like ?We aim to be No. 1? are too vague, leaving teams without a clear direction or purpose. A strong vision should empower teams, guiding both strategy and execution with clarity. When Microsoft shifted to ?empower every person and every organization on the planet to achieve more?, it sharpened their strategic focus, directly influencing product development and market positioning.
2. Unvalidated Strategy
Strategies often fail when they are based only on market size without considering critical factors like desirability, viability, feasibility, and usability. Without proper validation, resources can be wasted. Product discovery is key to ensuring a strategy is built on real insights. Spotify relies on A/B testing and user research to validate features before launching, ensuring they meet user needs and align with market expectations.
3. Strategy as a One-Way Street (Top-Down)
Top-down strategies risk missing essential insights from customer segments and market dynamics. Effective strategy should be a collaborative process, incorporating feedback from different levels within the organization. Toyota’s ?Genchi Genbutsu? principle, or ?go and see?, encourages leaders to directly engage with operations and customers, ensuring their strategy is grounded in real market needs.
4. Lack of Focus
Frequently changing strategy without proper validation leads to scattered efforts and unclear results. A steady, validated strategic course is essential to achieve meaningful outcomes. Apple’s consistent focus on premium products and exceptional user experience has maintained the effectiveness of their strategy, even in a rapidly changing tech landscape.
5. Hyperflexibility
On the other hand, overly rigid strategies can trap teams in cycles of ineffective work. It’s vital to remain adaptable and recognize when shifts are needed to avoid further losses. Netflix’s pivot from DVD rentals to streaming is a clear example of strategic flexibility, responding to technological changes and evolving consumer behavior to drive growth in a new market.
Conclusion
Our conversation helped me realize that while developing a successful strategy involves navigating complex issues, the process itself doesn’t have to be complicated. At its heart, effective strategy is about understanding and balancing different perspectives. Yet, it should be simple enough to fit on a poster. And that, I believe, is the core message I wanted to convey to Jan:
?A good strategy is like a prism. It breaks down complexity into clear insights and guides decisions from multiple perspectives.?
Design Leader & Product Discovery Coach
6 个月What a small question was triggering in you is exciting. I really enjoyed our chat and will always come back to you with these topics as you are the best sparring partner for thinking about these things I know.