Why Getting Your Strategy Right is the Ultimate Competitive Advantage
I regularly follow a handful of online influencers. I avidly read their research and frameworks that share their viewpoints on the importance of strategy.
Over this past week, I came across several posts that are spot on. I just had to summarize and share them today.
Being an 80/20 everything kind of thinker, taking time to understand and get strategy right on the front end, is the20% that will produce 80% of your results.
So, please take the time upfront to work with your team and get strategy right at all levels – organization, business unit, team, products, and services.
You will thank me. Why? You and each of your team members will have clarity and focus for optimal execution.
*Credits to Nick Curum and Steve Thornton.
In the modern world of business and nonprofit enterprises, "strategy" is perhaps the most overused, yet least understood word in the boardroom.
We see it in 40-page strategic plan documents, 25-slide pitch decks, mission statements, and annual reports, yet many organizations struggle to define what strategy actually is.
Is it a goal? A plan? A set of tactics?
If you want to move from "staying busy" to "winning," you will have to understand two fundamental truths: Strategy is a set of choices. And strategy is clarity.
What is Strategy Really? (Hint: It’s Not a To-Do List)
Many leaders make the mistake of working on a "strategic plan" for strategy. Those two words are very different in meaning.
Strategy is your “theory to win” (or theory of change). Your strategy should be on one-page.
Planning is how you and your team will execute your strategy. If strategy is the Why, What, and Where, then planning is the Who, How, and When.
Planning is a tactical action list of tasks, responsibilities, resources, and timelines – 5-year, 3-year, annual, quarterly, monthly, and weekly – and of course aligned to your strategy.
As strategy expert Roger Martin often notes, strategy is a coordinated set of choices that uniquely positions a firm in its niche to create a sustainable competitive advantage.
It’s about answering two core questions:
Without answering these, you don’t have a strategy…you only have hope.
Strategy is Clarity: The Power of "No"
If strategy is about making choices, then its greatest byproduct is clarity. A well-defined strategy acts as a filter for every decision made within an organization.
When your strategy is clear, every employee, from the executive suite to the front lines, understands what your company or nonprofit organization is trying to achieve, and more importantly, what you and your team members will not do.
Clarity Provides…
In short, strategy is the discipline of saying "NO" to 99% of good ideas, so you can give a resounding "YES" to the 1% of great ideas.
Strategy vs. Tactics: Why You Need Both
As mentioned above, a common pitfall is confusing strategy with tactics.
Sun Tzu famously said, "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat."
If you have great tactics (like a viral social media campaign), but a poor strategy (a product that doesn't solve a real problem), you might see a temporary spike, but you won't build a lasting business or nonprofit organization.
Conversely, a brilliant strategy with poor execution (tactics) will never get off the ground. Getting it "right" means ensuring your tactics are the logical servants of your strategy.
The High Cost of Getting Strategy Wrong
When an organization lacks strategic clarity, the symptoms are easy to spot:
How to Get Your Strategy Right
Getting your strategy right doesn't require a 100-page document. It requires your commitment to the following:
Final Thoughts
Understanding and getting your strategy right is not just a management exercise - it is the foundation of organizational sanity.
When you move from a "plan" to a "set of choices," you move from confusion to strategic clarity. And in a crowded market, clarity is the ultimate competitive advantage.
Are you ready to refine your choices? Start by asking your team one simple question: "What are we choosing NOT to do this year?"
The answer you receive might be the most strategic thing you hear all day.
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