i like that you start with a definition. "strategy", as you say, has become a confusing topic because the word has been recklessly and ignorantly used.
i suggest a different definition. but first, consider this.
when we create words it is intended to communicate a thought. we don't usually have two words that mean exactly the same thing. words usually have nuanced differences. but people regularly dismiss nuance and use different words interchangeably (and inaccurately). Example: people say they are jealous when they mean they are envious. Jealousy means the fear of losing something you have. Envy means wanting what someone else has... I hear these misused many times per week.
My point? "Strategy" was meant to mean something different than doctrine, tactic, innovation, etc.
When we know what we want to achieve, but it is complex, we are wise to execute a project using project management concepts (whether waterfall or agile). So, when we engage a contractor to build a home, they should create a project plan. There are still many unknowns like color of the carpet, paint choices, appliance choices, etc. But you don't start building a home without a plan that depicts the size, shape, style, architecture, etc. This requires much certainty.
But, what do we humans do when we are faced with uncertainty about how to achieve an objective?
The condition of uncertainty led to us create the word, "strategy".
Before sharing my definition, here is a view of organizations.
i need to share this because, people don't really understand what an organization is either. They will say, "i knew that". But i have rarely heard this articulated...
AN ORGANIZATION IS a collection of processes that utilize capabilities and assets to achieve a common goal.
With all that pretext, here is my definition of strategy:
STRATEGY IS the method used to deal with an uncertain future that we think could cause our failure (WHY we need strategy); by identifying the capabilities and assets needed to meet our objectives in that uncertain future (WHAT makes strategy different than project management or process engineering or business architecture); by identifying a view of that future, the dynamics we expect will shape success in that future, and the capabilities and assets needed to succeed in that future (HOW to use strategy).
Strategy is all about "uncertainty".
To come to this definition, I read over 100 articles (HBR, SLoan, Stanford, UCLA, more), dozens of business books (including Harvard's “10 Must Reads from HBR On Strategy”), military books, watched untold numbers of videos, and listened to what seemed like a million so called "experts".
Eventually, i had to create my own definition because all these sources promised definitions but instead offered examples or entire chapters to explain "strategy".
Anyway, all this leads to an organization creating what people call "the strategy", which provides a label or the "theme" of change, and an explanation of the capabilities and assets needed for success in that uncertain, but expected future.
Example labels for “the Strategy”: 1.) use AI to modernize insurance operations; 2.) separate our manufacturing processes from our distribution processes; 3.) decentralize our personnel.
Each of these communicates something that needs to be achieved, without the specifics of how it will be achieved.
To get the specifics leads us to "strategic planning" which identifies how we will attain the capabilities and assets we think will enable us to achieve our objectives in that uncertain future.
Both “the Strategy” and the Strategic Plan need periodic monitoring because as we approach that “uncertain” future, some aspects will become certain, or less uncertain, and some things will be dismissed.
Strategic planning uses the same methods as project planning except for how objectives are prioritized... briefly, to get resources allocated to work that is deemed to be "strategic", the sponsor must show that the work leads to the attainment of a capability or asset needed in that uncertain future (as described in "the Strategy"). This is not the same as finding linkage to "the strategy". It is too easy to make operational improvements seem linked to the strategy.
So, my views on strategy. They served me well as the strategist for 4 consecutive CEOs of an F100 company over 25 years...
Thanks for sharing your thoughts on strategy Claire. Your post reminded me of a time I was about to create a video for something and I asked a film director friend about shooting it. He paused, sighed (dramatically) and said, "Filmmaking is so complicated." That was all I got from him. Not especially helpful, but again, it reminds me of your challenge with strategy. It's exceedingly difficult to nail the topic down. You quote liberally from Rumelt, and I like his approach but there is so much more. One aspect you didn't discuss in detail is the concept of value propositions (see for example Treacy and Wiresema's "The Discipline of Market Leaders"). Choosing a core VP is absolutely essential in developing a strategy. And then there is the concept of positioning, and on and on. In my work with clients, I try (emphasis on try) to simplify the concept by having them answer 4 questions: What is your driving force as an organization; what propels us forward (tech, products & services, customers & markets, ....), Who are your target customers, What do we sell, and how do we sell (value proposition). They sound simple, but if tackled with rigour and discipline are very difficult.
Hi Claire, great article! One question: you mention OKR at the beginning, saying we shouldn't jump straight to them when we are tasked with getting good at strategic thinking. Yet, I assume it's an effective framework once we identify the challenge, isn't it?
Thank you very much, that's a great post full of resources. I'll add one book that shows the difference between strategy and tactics, and how they both need each other : Sun Tzu, The Art of War. A 4000 years old book that is still relevant today (well, it didn't predict guerrilla, and several aspects of modern warfare, but the fundamentals are still there)
I suggest reading Ben Gilad’s books on war games and early warnings.
Better take any classes he teaches for ACI.
His nuanced views provided the epiphany to launched my success as a strategist.
i like that you start with a definition. "strategy", as you say, has become a confusing topic because the word has been recklessly and ignorantly used.
i suggest a different definition. but first, consider this.
when we create words it is intended to communicate a thought. we don't usually have two words that mean exactly the same thing. words usually have nuanced differences. but people regularly dismiss nuance and use different words interchangeably (and inaccurately). Example: people say they are jealous when they mean they are envious. Jealousy means the fear of losing something you have. Envy means wanting what someone else has... I hear these misused many times per week.
My point? "Strategy" was meant to mean something different than doctrine, tactic, innovation, etc.
When we know what we want to achieve, but it is complex, we are wise to execute a project using project management concepts (whether waterfall or agile). So, when we engage a contractor to build a home, they should create a project plan. There are still many unknowns like color of the carpet, paint choices, appliance choices, etc. But you don't start building a home without a plan that depicts the size, shape, style, architecture, etc. This requires much certainty.
But, what do we humans do when we are faced with uncertainty about how to achieve an objective?
The condition of uncertainty led to us create the word, "strategy".
Before sharing my definition, here is a view of organizations.
i need to share this because, people don't really understand what an organization is either. They will say, "i knew that". But i have rarely heard this articulated...
AN ORGANIZATION IS a collection of processes that utilize capabilities and assets to achieve a common goal.
With all that pretext, here is my definition of strategy:
STRATEGY IS the method used to deal with an uncertain future that we think could cause our failure (WHY we need strategy); by identifying the capabilities and assets needed to meet our objectives in that uncertain future (WHAT makes strategy different than project management or process engineering or business architecture); by identifying a view of that future, the dynamics we expect will shape success in that future, and the capabilities and assets needed to succeed in that future (HOW to use strategy).
Strategy is all about "uncertainty".
To come to this definition, I read over 100 articles (HBR, SLoan, Stanford, UCLA, more), dozens of business books (including Harvard's “10 Must Reads from HBR On Strategy”), military books, watched untold numbers of videos, and listened to what seemed like a million so called "experts".
Eventually, i had to create my own definition because all these sources promised definitions but instead offered examples or entire chapters to explain "strategy".
Anyway, all this leads to an organization creating what people call "the strategy", which provides a label or the "theme" of change, and an explanation of the capabilities and assets needed for success in that uncertain, but expected future.
Example labels for “the Strategy”: 1.) use AI to modernize insurance operations; 2.) separate our manufacturing processes from our distribution processes; 3.) decentralize our personnel.
Each of these communicates something that needs to be achieved, without the specifics of how it will be achieved.
To get the specifics leads us to "strategic planning" which identifies how we will attain the capabilities and assets we think will enable us to achieve our objectives in that uncertain future.
Both “the Strategy” and the Strategic Plan need periodic monitoring because as we approach that “uncertain” future, some aspects will become certain, or less uncertain, and some things will be dismissed.
Strategic planning uses the same methods as project planning except for how objectives are prioritized... briefly, to get resources allocated to work that is deemed to be "strategic", the sponsor must show that the work leads to the attainment of a capability or asset needed in that uncertain future (as described in "the Strategy"). This is not the same as finding linkage to "the strategy". It is too easy to make operational improvements seem linked to the strategy.
So, my views on strategy. They served me well as the strategist for 4 consecutive CEOs of an F100 company over 25 years...
Thank you for this - great article with some great examples.
YES to rhythm! I never applied that concept to strategy but it's super smart and really resonates.
Thanks for sharing your thoughts on strategy Claire. Your post reminded me of a time I was about to create a video for something and I asked a film director friend about shooting it. He paused, sighed (dramatically) and said, "Filmmaking is so complicated." That was all I got from him. Not especially helpful, but again, it reminds me of your challenge with strategy. It's exceedingly difficult to nail the topic down. You quote liberally from Rumelt, and I like his approach but there is so much more. One aspect you didn't discuss in detail is the concept of value propositions (see for example Treacy and Wiresema's "The Discipline of Market Leaders"). Choosing a core VP is absolutely essential in developing a strategy. And then there is the concept of positioning, and on and on. In my work with clients, I try (emphasis on try) to simplify the concept by having them answer 4 questions: What is your driving force as an organization; what propels us forward (tech, products & services, customers & markets, ....), Who are your target customers, What do we sell, and how do we sell (value proposition). They sound simple, but if tackled with rigour and discipline are very difficult.
Hi Claire, great article! One question: you mention OKR at the beginning, saying we shouldn't jump straight to them when we are tasked with getting good at strategic thinking. Yet, I assume it's an effective framework once we identify the challenge, isn't it?
Thank you very much, that's a great post full of resources. I'll add one book that shows the difference between strategy and tactics, and how they both need each other : Sun Tzu, The Art of War. A 4000 years old book that is still relevant today (well, it didn't predict guerrilla, and several aspects of modern warfare, but the fundamentals are still there)
So what are 3 things you learned from that book about strategic planning that you would have everyone know?