Strategy or Execution - Which is More Important?
In my experience, it's important for earlier-stage companies to focus on execution, but not at the expense of strategy which could mean you end up 'running east looking for a sunset'. It's essential to focus on both as they are critical to the company’s success and growth. Here’s why:
1. Strategy helps with Direction and Focus
In an early-stage company, resources (time, money, people) are often very limited. A well-thought-out strategy will help ensure the team is working toward aligned goals and investing efforts where they matter most.
But, without execution (or as I like to call it, "getting your hands dirty"), strategy becomes theoretical and detached from reality. Ideas are useless unless acted upon.
2. Execution Validates Strategy
Early-stage companies operate in uncertainty, often testing new markets, products, or customer segments. So, rolling up your sleeves and directly engaging in tasks—selling to customers, building/enhancing products, or solving operational bottlenecks—gives you real-time feedback on what’s working and what isn’t. This hands-on experience will help make sure the strategy is based on facts and data, NOT assumptions. For example: a product roadmap created without customer feedback can lead to wasted development cycles. By talking to customers directly you can ensure the strategy aligns with market needs.
3. Agility
Startups evolve quickly, and priorities can shift as new challenges or opportunities emerge. A leader who can seamlessly switch between strategic thinking and tactical action can adapt faster and lead by example....BTW, this isn't always easy to find so if you find someone who can easily pivot from tactics to strategy, grab 'em! This agility also inspires the team—seeing leadership actively involved in problem-solving can motivate others to take ownership.
4. Builds Credibility and Trust with the Team
In small teams, leaders who are willing to “get their hands dirty” often earn the respect of their team members up and down the chain. It shows you’re not above doing the hard work, and you understand the realities they face. This hands-on involvement can foster a culture of collaboration and sets a precedent for accountability across the company.
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5. Strategy Without Execution Can Cause Delays in Results
In early-stage companies, speed matters. You need results fast to prove viability, attract funding, or outpace competition. Spending too much time strategizing without action will lead to missed opportunities.
6. Execution Without Strategy Wastes Resources
On the flip side, diving into work without a clear plan can lead to inefficiency, burnout, and poor decision-making. More of a balance can ensure that every action taken is tied to a larger goal, making progress both faster and more meaningful.
7. All-Hands-on-Deck
Startups often lack the luxury of specialized teams. Leaders and employees wear many hats and must step into multiple roles. Its one of the things that attracted me to startups in the first place. Balancing strategic oversight with operational involvement ensures you’re filling gaps while also steering the ship in the right direction.
8. It’s Foundational for Scaling
The insights gained from hands-on work allow you to identify pain points and inefficiencies, which you can address when building scalable processes and systems. A deep understanding of the business from the ground up ensures that when you scale, you’re doing so from a strong foundation.
Some Ideas on How to Ensure You Have a Healthy Balance of Strategy and Execution:
There are no guarantees that balancing strategy and execution will lead to success however, not doing so will surely lead to failure, and and in early-stage companies it isn’t just important, it’s essential for momentum, credibility, and long-term success.