The Manager's Guide to Understanding the Nuances of Strategy

“With the level of uncertainty we see today, more people are asking, how can you develop a strategy in a world that keeps changing so fast? They are afraid that a set of rigid principles will hinder their ability to react quickly. I argue that it is precisely at such times that you need a strategy.”- Orit Gadiesh

Managers are considered to be the backbone of any business organization. Although relatively short of powers, they are in no way less significant than the business leaders when it comes to developing strategies and implementing them. A large business organization has managers at several levels that communicate flawlessly for the smooth functioning of the business. The managers are often responsible for developing strategies, presenting them to the leaders, getting the needed approval, and then implementing it. In short, they are crucial and essential part of any business organization.

No Strategy is Perfect

“I take the position that I’m always to some degree wrong, and the aspiration is to be less wrong.”- Elon Musk

The foremost thing that is required for the development of a good strategy is the diagnosis of the situation. This means that you have to identify the problem, diagnose it, and then chalk out the different methods you can use counteract it. This can easily be related to a doctor treating his patient. The doctor does not provide medications right away. Instead, he performs certain examinations, makes the diagnosis, and then moves forward. This can also be applied in the business world.

Strategies should be flexible. Flexibility of strategies implies that they are open to changes. The best strategies are formed when multiple people raise questions and then try to solve them with equal fervor. No strategy is 100% perfect but the manager must make sure that it is close to perfection for the company. It is necessary to pay heed to all concerns and have enough self-awareness and intelligenceto acknowledge the loopholes the strategy may have. This is also the reason why competition analysis is a crucial part while developing new strategies. It is vital to study the present market as well as the competition in fine detail. Often, we develop strategies by locating the weakness of the rivals and exploiting them.While flexibility is a good attribute, but it should not be used as an excuse to stay confused.

Calculated Risk Taking

"Strategy is simply resource-allocation. When you strip away all the noise, that's what it comes down to. Strategy means making clear cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets."-Jack Welch

Sometimes, managers take decisions that are not in accordance with conventional corporate methods. These quick decisions are what direct the shape and growth of the company. While managers often face the heat if their decisions go wrong, they must not shy away from taking that extra step to bring success to the business. The story given below demonstrates an insightful and bold strategy adopted and implemented by a manager.

In 1989, 7 months before the Berlin Wall tumbled, Lou Hughes was appointed as executive board's chairman for Opel. It was the European subsidiary for General Motors. The breaking of the Berlin Wall in November of 1989 brought in a range of dilemmas for this new manager. He had to make a series of decisions to give a firm competition to Volkswagen, which was Opel’s rival at that time.

Knowing the East Germany market was the first priority to conduct a smooth business. He ignored the traditional approach and decided to develop new strategies on the go. He worked tremendously and finally succeeded in building an automobile unit in East Germany with the aid of one of his union members. Then he gave the opportunity to the local unit leader to gain publicity, and also made the Chancellor at that time Helmut Kohl subsidize it. He also plucked fresh talents and coordinated with the local people, and recruited them to make sure that the presence of Opel could be prominent in the new market.

The story above is a good example of how managers sometimes take risks to implement new strategies without following the traditional corporate procedure. This may cause mayhem and is not always the ideal way to go forward. But, good managers always have instincts that they follow religiously, and that is what sets them apart from the mediocre ones.

Conscious Delegation

“Strategy is about setting yourself apart from the competition. It’s not a matter of being better at what you do - it’s a matter of being different at what you do.”-Michael Porter

The concept of strategy is often misinterpreted and misunderstood. The outcome or the mission of the business is not its strategy. Although it is deeply connected with both, the strategy is basically the actions that are outlined to help the company move forward. The best strategies are flexible as the business market is never concrete and keeps on fluctuating. Focusing on a strategyhelps clear the confusion and allows the team to dedicate their time to achieving the goals. Managers are responsible for the implementation of the strategies approved. As such, they are under tremendous pressure. This leads to basic errors that could have been avoided. One effective way to handle pressure is effective delegation. Managers must delegate their work to achieve the best results.

Napoleon is considered one of the greatest strategists of all time. His specialty was creating small, mobile armies that could quickly wage decisive wars. During the battle of Ulm, Napoleon's forces, although outnumbered, surrounded 3000 Austrian troops, cutting off any escape route.

Decades later, and the same strategy seems to have been adopted by Google, which is arguably a giant in the search engine market. The business strategies of Google seemed to have played a great role in its success. One such strategy was to develop small teams with a manager who would direct the team as per requirement. The hierarchy was simple, and it was a way for the employees to follow orders and avoid confusion.

As a result, decentralization is a big part of Google’s strategies to develop products. For the strategy to be successful, it is not dependent on a single person. Instead, the small teams report to their managers who againreport to the manager above them and so on. The teams are constructed in a way that they can function independently. This serves a dual purpose. The hierarchy is clearly established and the main manager does not have to shoulder all the responsibilities. This gives him plenty of time for other works that need to be overseen.

The stories above clearly demonstrate the consequences that the business could suffer if a single person tends to handle everything. It is not good for a manager to be too controlling and also bad for the growth of the company. This might impede innovation, and lead to an outdated work culture too obsessed with protocol to formulate successful plans. The manager must learn to let go and trust his colleagues to do their work without interfering too much. This step might cause the manager to lose some power but will definitely allow innovation and creativity to flow from the team members. This will ultimately add to the profits of the company.

Closing Thoughts

Managers must always monitor strategy creation and implementation. Any deviation from the intended strategy must be noted for future references. Whether it profits the company or not, it should be recorded and organized in detail. Understanding the nuances of strategy will not only help you create effective strategies but will also help you implement better.