These are my observations after reading Rebecca Homkes' book "Survive, Reset, Thrive: Leading Breakthrough Growth Strategy in Volatile Times".

I rarely write summaries of business books, as many of them, in my opinion, contain one or a few key ideas that form the foundation of the entire book, with numerous repetitions. However, there are exceptions that resemble more of a handbook or a playbook. One such example is the recently released (2024) book on strategic management, "Survive, Reset, Thrive" by Rebecca Homkes.

According to Homkes, managing a company can be divided into three stages: Survive (a survival method, when the company needs to create an operational plan and restructure), Reset (preparing a strategy for how the company should operate in the future), and Thrive (strategy implementation and fine-tuning based on real-world conditions). The transitions between these stages are sequential; however, after reaching the Thrive phase, a company can find itself back in the survival stage. Companies that aim to thrive should not only work on strategy development early, even before leaving the Survive stage, but also think about ways to minimise the risk of returning to Survive and how to quickly overcome this phase if needed.

Regarding the transition to the Survive stage, Rebecca notes that it can be either planned (gradual degradation or decline in business or business management) or triggered (something happens in the markets, technology, regulation, or environment), where a risk that wasn't visible from afar materialises. The author emphasises that one of the indicators of a well-developed strategy is the company's ability and speed to respond to triggered risks and unforeseen situations. When it comes to uncertainty, it can be both negative and positive for the company, and the company’s preparedness to react to this uncertainty will show how well the strategy was executed.

In terms of working with strategy, I highlighted several points with my comments and thoughts that are not groundbreaking, but nonetheless allow for reflection. There are no 1-1 quotes, and more a summary (or how I understand this text) + my comments after //:

1) "The art of strategy lies in focusing on a few things that may differ between expectations and reality, as well as in relation to each other." // The necessity of limiting goals and directions for a company's development is critical to achieving results. Often, companies take on more than they can handle for reasons ranging from "wanting everything" to "trying to find a compromise between all stakeholders." And if "strategy is the art of creating value," then it's essential to agree at the outset on how the company can provide maximum value to customers (with minimal implementation costs).

2) "Predictions and forecasts are usually based on experience, but in a rapidly changing (turbulent) environment, such predictions may not always help achieve the expected future." // This is an interesting point for those who assume everything can be measured and predicted through data.

3) Strategy is not set in stone (a master plan); it is a set of actions aimed at achieving goals. With every step we take, our context changes, which may require adjustments to our strategy as well.

4) A particularly interesting idea is the assumption that there are "wartime" and "peacetime" CEOs. // Some are charismatic leaders who can pull a company out of a crisis (and then, when things calm down, may even look for opportunities to heroically step in again) or grow a startup into a full-fledged organisation. Others skillfully manage the business during times of relative calm and moderate growth. I assume many of us can think of managers who fall strictly into one of these categories, but the claim that they are only effective under certain conditions has not been proven.

5) Avoid "stacking management"—the situation where, during rapid growth, there is an assumption that to scale success, you just need to hire X times more people in departments, and this will yield X (or even more) results. // Typically, this leads to solving the problem of managing a larger number of people rather than increasing value. Instead, Homkes suggests focusing on aspects that can help increase the value delivered and expanding the team in relation to that.

6) Instead of sharing KPIs across the entire company, explain what the company wants to achieve so that employees can figure out how they can contribute to the result, giving them autonomy in reaching the expected outcomes.

7) Remember, a good strategy provides guidance to make choices before decision points occur.

8) Stability is the foundation of a company's development, not its antithesis. If your company wants to thrive, it must always be prepared to go through the survival stage.

9) “Everyone has a plan until they get punched in the mouth” – Mike Tyson. // We often hear that a company is ready for changes (from “we are prepared for competitors entering our market” to “we are ready for a cold winter”), but when the event occurs, the company goes into shock. Given that a company cannot choose when risks will materialise, the idea of developing a strategy for addressing critical risks when they arise is justified. Additionally, a company cannot instantly change its internal processes and speed of response, so to minimise the impact of risks, the speed (and effectiveness) of reacting to events must constantly improve.

10) An interesting question from Rebecca for company leaders is: “Based on current expenses, current linear growth rate, and cash on hand, will the company continue to be profitable if the current growth rate does not increase?” If the answer is “Maybe,” then you are “default dead.” // Sometimes we hear that our strategy allows us to be profitable and successful, but this often assumes an optimistic scenario where the company will grow more than before.

11) The universal method of cutting costs by X% across all areas is usually ineffective and, moreover, shows a lack of strategic understanding. Instead, it's necessary to map the value chain, identify which areas of the company are least critical (and contribute the least) to delivering customer value, and start cutting costs there. Additionally, there's no point in focusing on minor optimizations—besides not producing the needed effect, it will also become noticeable and irritate employees and partners, sending signals about the company's state and the leadership team's intentions.

12) The always relevant question of “how best to handle layoffs” in this book suggests that if cuts are necessary, they should be done swiftly (layoffs as surgery: short-term pain followed by long-term recovery), starting with decisions that were already overdue. Multiple rounds of layoffs demotivate and demoralise employees, leading the best talent to leave the company.

13) Avoid the “sunk cost fallacy”—the investments and time you've put into projects/products/startups are in the past and cannot be recovered. Shutting down such activities can be emotional. The author suggests asking, “Knowing what we know today, would we start/invest/launch this project now?” If the answer is no or maybe, pause or possibly stop it completely.

14) During the survival phase, it’s essential to appoint a leader among the executive team. Homkes suggests the COO or CFO for this role, as the CEO should already be thinking about strategy for the years ahead. If no one is thinking about what happens after the current crisis, each new risk event will plunge the company into further crises.

15) The book covers many basic approaches like “knowing and managing key metrics,” “knowing the core segments” of the business, and “the need to communicate progress out of the crisis to the entire company.” While these are usually well-established in most companies, that's not always the case, and the author clearly helps highlight the necessity of these actions.

16) We cannot predict what the future will look like, but we can analyse global trends (beliefs about the world) and increase the speed at which we test hypotheses and learn as a company. If we add flexibility in decision-making, a shared context (where information within the company is accessible and not hidden by some managers from others), and a trust-based working environment (trusted network), such a company will respond to changing conditions and environments faster and more effectively than its competitors.

17) To define a growth strategy, it is essential to work with trends—identify which trends are most significantly transforming the market you operate in, consider what assumptions and hypotheses can be built on these trends, how they can be tested, and what actions should be taken. When working with trends, a chart can be created with axes for industry/market impact and criticality to your company’s strategy. Then, for the sector with high scores on both axes, it’s suggested to list the top 10-15 trends.

18) The author highlights an interesting point about the CEO’s influence on strategy actualisation: "CEOs can be the intentional blockers as they are often the most emotionally attached to the origins of the company’s assets."

19) The author also recommends considering not only trends affecting the entire value delivery chain but also local trends at specific stages (e.g., logistics or payment systems).

20) When developing a strategy, three areas can be considered: resources, the company’s capabilities, and the constraints on implementation, which may offer advantages over competitors. "Do we have something here that others do not? Can we do something here that others cannot? Is this where we build a moat around our advantage?"

21) In addition to developing the strategy itself, employees must also be motivated to execute it. // What might this motivation look like? In my opinion, the challenge of motivating employees has existed since biblical times. However, when working on a strategy, leadership often overlooks the question, "What's in it for the executors?" (since every executive officer understands the personal benefits of successfully implementing the strategy). This issue is often postponed until the strategy is implemented, then until the first dissent arises, and often remains unresolved, significantly reducing the chances of success. Motivation through shared interest cannot be universal, as it varies across companies and employees. // However, each employee joins a company with specific expectations, and if we assume that a company’s culture and values largely determine who they hire, this could be the key to understanding how to make the company’s strategy interesting to all employees, not just the top organisational level.

22) When finalising a strategy, it’s essential to get feedback from every member of the executive team to ensure understanding and acceptance of its implementation. Moreover, the company must be prepared to part ways with employees who cannot accept the new reality and strategy. It’s better to start with a smaller, more aligned team.

23) Identify what doesn’t add value and remove it from the strategy. As Peter Drucker said, “There is nothing so useless as doing efficiently that which should not be done at all.”

24) Developing a strategy takes time, as even experienced directors may tend to vote for decisions that they initially placed at the top of their priority list. A red flag in discussions would be phrases like, “There is no need to discuss this, we know it has to be on the list,” or biases based on past experience, such as, “This is just like 2 years ago when we tried a partnership.” Following a structured process helps eliminate unnecessary biases and enables the team to achieve the desired results during a strategic session.

25) High company growth requires cutting activities that don’t provide significant value, allowing the company to focus on the few things that do. It’s crucial to have a clear picture of what’s hindering growth. It is also recommended to limit the number of internal challenges a company faces to 3-5. These challenges can be divided into three categories: 1) immediate quick wins (what can be implemented within 3 months), 2) what you will do in the next year, and 3) what will take the entire strategic cycle (3 years).

26) In the Thrive stage, disciplined flexibility is essential, built on an approach that includes testing assumptions and hypotheses. // An interesting emphasis here is that even the most “promising” and “winning” plans need to be tested during implementation, which helps reduce the risk of large expenses with no return for the business. In product development teams, these approaches are quite popular and widespread under the umbrella of Agile methodologies and tools, as well as the product-driven approach. However, in terms of company-wide operations and long-term strategy building, aligning on how activities, projects, and internal startups will be tested might be a new item for the strategic session. Many growth options for a company seem attractive, and it’s always easier to include more in the strategy rather than less. "A company that tries to be everything to everyone is a company for no one."

27)To determine a company's predictability, Rebecca Homkes suggests four points: a) I know what we are trying to achieve and why it matters, b) I know where critical decisions are made, c) I can rely on others to do what they say they will do, and d) When I contribute within the boundaries of strategy, it is rewarded. Answering these questions can help clarify both your and the company’s understanding of strategy implementation.

The book presents descriptions of how various strategic workshops and operational meetings function across all three stages (Survive, Reset, Thrive). The approach to defining KPIs for top management in relation to the company’s overall growth goals is also interesting. If you're curious about what insights I gained, we can discuss them separately. My goal in this summary was to spark your interest in reading the book. It’s definitely worth the time spent with a Kindle.