Making Sense of Strategy

Article by Matt Lock with contributions from Brian Chandler

Strategy is a word that gets thrown around a lot in organisations. The more senior the executive, the more likely they are to use it. It’s seen as the territory of the big decisions—the domain of those who ‘set the direction’.?

In reality, the concept of strategy is often misunderstood. It’s frequently confused with operational plans or wish lists of things you’d like to happen. Many early-career leaders struggle to grasp it, but my sense is that their senior colleagues grapple with it too. Admitting that though, might feel like professional suicide. This article is an attempt to demystify strategy and offer some support and resources to build better ones.

In my experience, good strategy is rare. And yet, when you hear it, you recognise it instantly. It’s simple in retrospect, almost obvious—like those blind-spot lights on the wing mirrors of new cars that have solved a problem we’ve had for the entire lifespan of automobiles. Real strategy is clear and concise. If someone hands you a multi-paged ‘strategy’ document, chances are it’s not strategy—though it may contain some elements of it.

What strategy really is

At its core, strategy describes how the ends will be achieved by the means. It is the deliberate set of choices, actions, and resource allocations an organisation makes to achieve its goals.

Which means that it’s really helpful to know:

• What your goals are
• What resources you have to work with

Then, you can ask three key questions:

• How do we do this cleverly?
• How do we get more for less?
• How do we communicate this so all our people get it?

In reality, organisations can struggle to define their goals and resources clearly—that’s to be expected—you are navigating an ever-changing landscape. Markets shift, world events unfold, governments change, weather events happen, technology advances, people come and go. Welcome to leadership!

Strategy through the lens of sport

A useful way to think about strategy is through sport. An organisation’s strategic approach can be understood through five key elements:

• The Game: This is your overarching goal or purpose. Success depends on defining what ‘winning’ looks like—whether it’s market leadership, innovation, or social impact.
• The Playing Field: The environment in which you operate, including market conditions, industry trends, and external forces shaping opportunities and risks.
• The Competition: These are the other players in the game—your competitors. Understanding their strengths, weaknesses, and tactics helps you anticipate moves and gain an advantage.
• The Players: Your team—employees, partners, stakeholders—whose skills, cohesion, and performance determine your ability to execute.
• The Plays: Your strategy—the deliberate choices, tactics, and positioning that shape how you compete and achieve your goals.

Success isn’t just about having a plan; it’s about adapting to the game as it unfolds—reading the field, adjusting plays, and making the most of your team’s strengths.

Structuring the language of strategy

Words like vision, mission, purpose, goal, objectives, strategy, and tactics are often used interchangeably, leading to confusion. Here’s one way of structuring them, using a historical example.

The 1990-91 Gulf War (a classic example of clear strategy):

Vision (Mission, Purpose): A description of a desired future

“Peace and security in the Gulf region”

This was the unifying idea around which George Bush Senior could rally the international alliance.

Goal(s) (Objectives): How do we measure progress or know when we’ve succeeded?

“Get the Iraqis out of Kuwait and pull their teeth”

Importantly, neither the vision nor the goals included regime change. The war stopped when these objectives were achieved.

Strategy: How do we do this cleverly, given the situation? Strategy is about getting more for less and can be simply stated—anything else is just a plan.

“Cut off and kill”

The coalition destroyed communication between Iraqi HQ and its vast army. This was particularly effective due to Iraq’s highly centralised regime. It wouldn’t have worked for the Americans in Vietnam or the Russians in Afghanistan.

Tactics: What will characterise the implementation of the strategy?

“Use of high technology and other strengths, compared to the Iraqis, to cover weaknesses (fragility of the alliance; US inability to take casualties).”

Did the allies have clear superiority?

• On the ground - no
• On the sea - yes (but not much sea in Iraq)
• In the air - absolutely

The clarity of this approach meant everyone knew what they were trying to achieve, how they were going to do it, and why it made sense. That’s strategy.

The simplicity of real strategy

Strategy isn’t about complexity. The best strategies fit on a single page and probably the back of an envelope. They make sense. They are clear. And they give people the confidence to act.

If you’re drowning in a long document filled with aspirations and buzzwords, take a step back and ask:

• What are we really trying to achieve?
• What resources do we have?
• How do we do this cleverly?
• What choices and priorities do we need to make?
• And, how do we say it simply?

Strategy should be about creating real momentum. It’s the difference between wishful thinking and decisive action. Between endless discussions and meaningful results. And in the end, it’s not the most comprehensive plan that wins, but the one that’s understood, believed in, and executed with clarity and conviction.

Examples of Good Strategy (Clever, Smart, Simply-stated)

Here are some of the best modern examples of clever thinking that achieves more for less and is simply stated:

1. IKEA – Flat-Pack Revolution

• Strategy: Sell stylish, affordable furniture by making customers do the assembly.
• Why it’s clever: Cuts production, storage, and shipping costs while engaging customers.
• Simple statement: “You build it, you save.”

2. Tesla – Direct-to-Consumer Sales

• Strategy: Skip dealerships and sell cars online.
• Why it’s clever: Saves on middleman costs, controls brand experience, and maximises margins.
• Simple statement: “Buy a car like you buy a phone.”

3. Ryanair – Ultra-Low-Cost Model

• Strategy: Strip away all frills and charge extra for everything.
• Why it’s clever: Keeps base ticket prices ultra-low, making air travel accessible.
• Simple statement: “Pay for what you use, not what you don’t.”

4. Netflix – From DVD to Streaming

• Strategy: Shift from mailing DVDs to streaming content on demand.
• Why it’s clever: Eliminated physical distribution costs and capitalised on internet growth.
• Simple statement: “Watch what you want, when you want.”

5. Amazon Prime – Subscription Flywheel

• Strategy: Charge an annual fee for free shipping, making customers shop more.
• Why it’s clever: Locks in customer loyalty while increasing spending.
• Simple statement: “One membership, more benefits.”

6. McDonald’s – Real Estate Empire

• Strategy: Own the land where franchises operate.
• Why it’s clever: Franchisees pay rent, ensuring a steady revenue stream beyond food sales.
• Simple statement: “Burgers make cash, land makes wealth.”

7. Uber – Asset-Light Taxi Service

• Strategy: Build a transport network without owning cars.
• Why it’s clever: Eliminates capital costs, scaling rapidly with minimal investment.
• Simple statement: “Your ride, at your fingertips.”

8. Airbnb – Hotel Industry Disruptor

• Strategy: Provide accommodation without owning any property.
• Why it’s clever: Taps into unused spaces and enables hosts to monetise their homes.
• Simple statement: “Live like a local.”

9. Spotify – Freemium Model

• Strategy: Offer free music with ads, converting users to paid subscriptions.
• Why it’s clever: Hooks users in for free, then upsells premium features.
• Simple statement: “Music for everyone.”

10. Dollar Shave Club – Subscription Razor Disruption

• Strategy: Sell razors via subscription, bypassing retail giants.
• Why it’s clever: Cuts costs, builds customer loyalty, and avoids in-store competition.
• Simple statement: “Shave time. Shave money.”

Each of these strategies finds a smart, simple way to deliver more value with fewer resources.?

Top Strategic Planning Tools

Here are some of the top strategic planning tools that help leaders analyse, plan, and execute strategy effectively:

1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

• Use it for: Identifying internal strengths/weaknesses and external opportunities/threats.
• Why it’s useful: Provides a simple but powerful overview of your strategic position.

2. Porter’s Five Forces

• Use it for: Understanding industry competition and profitability.
• Why it’s useful: Helps leaders assess competitive threats (rivals, new entrants, substitutes, suppliers, buyers).

3. PESTLE Analysis (Political, Economic, Social, Technological, Legal, Environmental)

• Use it for: Analysing external macro-environmental factors affecting strategy.
• Why it’s useful: Ensures strategy accounts for external risks and trends.

4. The Balanced Scorecard

• Use it for: Tracking strategic performance across key areas (financial, customer, internal processes, learning & growth).
• Why it’s useful: Translates strategy into measurable objectives.

5. VMOST (Vision, Mission, Objectives, Strategy, Tactics)

• Use it for: Ensuring that day-to-day activities align with long-term goals.
• Why it’s useful: Creates a structured link between vision and execution.

6. The Business Model Canvas

• Use it for: Mapping out how your business creates, delivers, and captures value.
• Why it’s useful: Provides a clear, one-page overview of your business strategy.

7. McKinsey’s Three Horizons Model

• Use it for: Balancing short-term performance with long-term innovation.
• Why it’s useful: Helps leaders invest in the present while preparing for the future.

8. Blue Ocean Strategy

• Use it for: Finding uncontested market space rather than competing head-on.
• Why it’s useful: Encourages differentiation and value innovation.

9. VRIO Framework (Value, Rarity, Imitability, Organisation)

• Use it for: Assessing if a company’s resources provide a sustainable competitive advantage.
• Why it’s useful: Focuses on internal strengths that drive long-term success.

10. Scenario Planning

• Use it for: Preparing for multiple future possibilities and uncertainties.
• Why it’s useful: Helps organisations stay flexible and resilient.

Summary

A well-crafted strategy brings clarity, focus, and momentum. It cuts through complexity, making choices explicit and action possible. The best strategies are not buried in lengthy documents—they are understood, believed in, and executed with conviction. Whether you're leading a team, shaping an organisation, or simply navigating your own career, the real power of strategy lies in its ability to turn intention into impact.?

Coaching Question

Reflecting on your own strategic challenges - what is the one choice you can make today that will create the greatest leverage for success?