The misunderstood art of strategy: More than a restructure

As I stood on the sidelines of the hockey nationals in Palmerston North, cheering on my daughter's team, I heard a vaguely familiar voice calling my name. I was really happy to see the guy – he was in my cohort of a leadership course I attended in lovely Queenstown a few years ago.

He was there to support his daughter in the opposing team.? But more importantly, he was super eager to tell me about his new role as the CEO of a promising Kiwi company. "I'm keen to start the restructure," he declared. "I have to shake things up, you know!"

I honestly hope I was sufficiently hiding my shock and disbelieve when I responded with a polite: "Wow, you’re moving fast, aren’t you?? Having been in the role for only two months how did you get time to complete your corporate strategy?"

His ever so slight hesitation gave him away – there was no strategy, just a restructure. It saddened me that this well-intentioned leader, who of course knew the story of strategy, had fallen for the carrot of demonstrating quick action through a corporate restructure.

To be honest, it took me quite a few hours to shake off the conversation with my CEO friend. It got me thinking about all the strategy sessions I've been part of over the years - the good, the bad, and the downright confusing.

You know, it's funny how often I've walked into boardrooms and seen walls plastered with sticky notes, flowcharts, and buzzwords. People love their buzzwords, don't they? "Synergy", "Disruption", "Pivot", “Lean” - I swear, sometimes I think we're playing corporate bingo rather than crafting strategy.

But you know what? Real strategy isn't about who can fill up a whiteboard the fastest or who knows the most jargon. It's about understanding - truly understanding - where you are, where you want to go, and how on earth you're going to get there.

Some years ago, I facilitated a strategy session for a very large multinational. I was confronted with a boardroom full of suited men, all staring at me – quite intimidating, I have to admit – with a “we know this company inside-out” look.? From the get-go the ?CEO - let's just call him Ben - was adamant that they needed to "digitise or die". Sounds familiar, right?

Now, don't get me wrong. Digital transformation isn't a bad thing. But it’s not the strategy.? Strategy is about the why and the what, digital transformation answers the how question.

So, I did what any self-respecting strategy facilitator would do. I made them take a step back. Actually, make that several steps back.

I did my strategy 101 spiel on why it’s really important to understand where we are today, our current situation. We then spent a good amount of time digging into it. And I mean really digging in – we looked deeper than just their key financial reports; we interrogated the current goings-on in their industry, we looked at what their competitors were up to, how their customers' needs were changing. We also looked at broader trends that could impact their business - things like changing regulations, emerging technologies, and social trends.

I quite enjoyed this part of the process, because as the teams who did the digging were reporting back, it was like watching a bunch of kids on a treasure hunt. They were uncovering insights about their own business that they'd never fully understood before.? But, as I always say, having all those interesting insights is just that – interesting – until you start connecting the dots.? That is where the real gold is.

For me, one of the most memorable moments of that session was when the penny dropped for one of the younger guys in the room.? We were all standing around the whiteboard , admiring the massive chart we'd created, when he share the picture that had formed from the dots he was busy connecting. The elders in the room went quiet for a moment and then erupted in excitement. And therein lies the power of good strategy work - it's not about one person having all the answers, it's about creating the space for the previously unseen pictures to emerge.

Then came the creative part.? I asked them to articulate their value proposition – how they will do things differently to their competitors, delivering great products and a great experience for their customers, and outstanding value for their shareholders. Now, let me tell you this, at this point a lot of companies stumble. They want to be too clever, coming up with these grand, fluffy statements that may sound good but actually mean nothing. Of course I wasn’t going to allow that to happen with Ben’s team. We crafted something clear, specific, and actually differentiating. Something their staff and their shareholders could buy into. It wasn't easy – rest assured, there were some heated debates - but we got there.

Then we did the dreaded gap analysis. This is where you compare where you are to where you need to be. Having just complete the narrative of the “where they needed to be” bit, it was getting them to be vulnerable enough to give the true version of where they were at that point which was tricky. But it's crucial, because without it, it’s hard to give guidance to the organisation on the work that needs to be done. So, with a lot of reassurance and a bit of coercing we identified the five most critical gaps they needed to close. Just five - because if everything's a priority, nothing really is.

Only after all of this did we start talking about how to align the organisation to this strategy – the structure, the culture, the policies and procedures and the reward and recognition framework. And guess what? The structure Ben ended up with looked nothing like what he'd initially put together. But it was a structure designed to deliver on their strategy, not just a reshuffling of the deck chairs, finding jobs for pals.

Now, I'd love to tell you that from that day on, everything was smooth sailing. But let's be real - strategy is hard work. It's not a one-and-done deal. It's something you've got to live and breathe every day. When someone comes with a great new idea, you need to be clear on how it will help deliver on the strategy, if not, it’s not flying. Simple.

But here's what I cán tell you: that company? They're doing pretty well now. They're not just reacting to changes in their industry - they're anticipating them, even shaping them. And it all started with taking the time to really understand their strategic playing field.

Look, we've all been there. The temptation to leap into action, to grab the latest business bestseller's ideas and run with them - it's strong. I get it. But if there's one thing I've learned from years in this game, it's the value of pause. That moment of reflection can be gold.

It's about having the courage to step back when everyone else is rushing forward.

Think about my CEO friend at the hockey nationals, all gung-ho about restructuring without a clear why. Or Ben, ready to digitise his entire operation without considering the broader picture. These aren't bad instincts, mind you. They're just not strategy. And they’re incomplete.

Real strategy work isn't always flashy, but trust me, it's worth it. Because in business, just like in hockey, victory doesn't go to the team that runs around the most. It goes to the team with the best game plan, the clearest understanding of the field, and the ability to execute with precision. That's what true strategy is all about.

Oh, did I mention that Ben’s one-day strategy session eventually ended after four weeks – not in one sitting, of course!