What is Strategy and What is it NOT?

In a world that’s constantly evolving, the term ‘strategy’ often becomes a buzzword across multiple domains, from business to personal development. But what exactly is strategy, and perhaps more importantly, what is it not? In this post, we’ll delve into the true essence of strategy and dispel some common misconceptions.

WHAT IS STRATEGY

"Great strategies, like great works of art or great scientific discoveries, call for technical mastery in the working out but originate in insights that are beyond the reach of conscious analysis."

Kenichi Ohmae

Strategy is the guiding light that steers you toward your aspired destination. It’s a visionary, adaptable, and well-conceived plan that helps you make informed decisions and prioritize actions. It’s an exercise rich in thinking.

Long-Term Vision and Direction

At its core, strategy is about setting a long-term vision and objectives that an individual, organization, or entity wants to achieve. This vision goes beyond mere tactics or operational plans; it’s a roadmap to success, outlining where you want to go and how you plan to get there. It provides a clear direction for decision-making and resource allocation over time.

This is the most common understanding of strategy, which might have led to the misconception that it’s merely an abstract concept without tangible impact.

Long-term visionary is more than just a high-level concept; it requires a sharp foresight based on a comprehensive understanding of the landscape you operate and will operate in. Consider Tesla, which recognized the increasing concern over climate change and the rising demand for renewable energy sources. They accurately identified a market opportunity in the automotive industry which was ripe for disruption, particularly with the growing emphasis on sustainability. Thereby, Elon Musk created a long-term vision statement – to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. This vision has clearly defined the direction encompassing the business focus, goals, and target market.

Another interesting example is the Journey to the West, the classic Chinese epic. It is about a Tang Dynasty monk named Tang Sanzang who travelled to the Western Region (Central Asia and India) with three powerful disciples to retrieve original Buddhist scriptures. After defeating various monsters and demons in 81 trials, they returned to China. If you have read the novel, it is easy to give all the credits to his disciples especially Sun Wukong, as Tang Sanzang is helpless in combat. However, without Sanzang, the team of three disciples wouldn’t even know where to go, i.e., their power would be aimless.

Creating a Unique Position

Particularly in the realm of business, a strategy is about carving out a unique position in the market. It’s not just about being better but being distinctively valuable to your target audience. This uniqueness is what gives a competitive edge. “Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value or conducting similar activities in a novel way” — Michael Porter.

Making Choices and Trade-offs

According to Michael Porter, the essence of strategy is choosing what not to do (“What is Strategy”). Strategy inherently involves making choices and trade-offs. It’s about deciding what not to do just as much as it is about deciding what to do. This aspect of strategy ensures that efforts and resources are focused on the most crucial areas that align with the overall vision and goals.

It is easier said than done, especially when we are wired to believe that the grass is greener. In the early 2000s, Blackberry was a leader in the smartphone market, particularly popular among business professionals for its secure email and messaging services. However, as the market evolved with iPhone and Android smartphones, Blackberry failed to make pivotal trade-offs. Instead of prioritizing its stronghold in the business segment, they tried to appeal to general consumers as well, ultimately losing ground in both arenas.

Adaptable and Flexible

A robust strategy isn’t rigid; it’s adaptable and flexible. The world is constantly changing, and a good strategy allows for adjustments in response to unforeseen circumstances. It involves regularly reviewing and, if necessary, revising your plans to stay on course.

WHAT STRATEGY IS NOT

Not Just a Plan or a Goal

While strategy involves planning, it is not just a plan. It’s more about the THINKING behind the plan. Similarly, having a goal is not a strategy. Strategy is about figuring out how to achieve that goal. I plan to discuss about this topic in a separate article.

Not Merely Tactics or Operational Efficiency

Tactics and operations efficiency are about execution and are often short-term and reactive. Strategy, on the other hand, is long-term and proactive. It’s the big picture that guides these smaller actions. However, a strategy without tactics is just an empty idea.

Not One-Size-Fits-All

There’s no universal strategy that works for everyone or every organization; this is why Strategy is an art. It is context-specific, depending on a multitude of factors including goals, resources, and environmental conditions. It is similar to what Sun Tzu described in the Art of War, strategy must consider diverse elements including the way, the weather, the terrain, the leadership, and discipline, all of which can vary widely across different contexts.

In the intricate dance of strategy, the steps are neither rigid nor predestined. Just as a maestro leads an orchestra through crescendos and decrescendos, adapting to the acoustics of the hall, so must leaders orchestrate their strategies, attuned to the rhythm of the market and the nuances of the competition. Strategy is not a static blueprint but a living, breathing entity that thrives on adaptability and foresight. It is a journey of thoroughly considered choices, where the only constant is change, and success lies in the delicate balance between steadfast vision and the agility to navigate the ever-shifting sands of the business landscape.