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Is Strategy Like Pornography?
July, 2008
A CEO asked me recently, “What does good strategy look like?” Good question. While he was looking for a specific format or structure, the question is much deeper than defining the individual elements or how many sheets of paper it should occupy. Is strategy like pornography, of which Supreme Court Justice Potter Stuart said, “…I know it when I see it.”? Is good strategy only visible from the future where we can look back and identify whether or not we won? This is interesting, but doesn’t help much. It is a bit like playing Russian roulette. You only know if you won after you pull the trigger. Some academicians have tried to put strategy into a box and say that there are only 3, 5 or 8 (pick a number) options for a global business strategy. This starts to become useful because it is a starting point for the conversation and can draw upon historical success and—perhaps more importantly—allows for communication and alignment. While I use this as part of my strategic thinking process, it is insufficient to stop here. Otherwise, you could buy a “strategy in a box” product and be done with it. Some argue that identifying strategy is a waste of time. This argument typically comes from an entrepreneur who does not want to be bound by a defined direction that might tie his hands. I have some empathy for those in a fluid environment, but bouncing from guardrail to guardrail hardly inspires the troops and aligns resources. My wife is a fluid, creative type but at some point even she has to make a choice and tell the waiter what she wants for dinner! Even those who cannot articulate their strategy have one. You can identify it by looking at their actions. It is rarely “tight” and most often people in the company are confused and working towards different ends which impedes progress and increases frustration. Many organizations go through “dark” periods where the strategy needs to be rethought and actions may not be consistent with the stated strategy. But that is different from saying, “I don’t want one” which is like a CEO saying, “I don’t want to lead.” You are either a good one or a bad one (or somewhere on the scale), but like it or not; you are leading. This is the point where I am supposed to dazzle you with a brilliant definition of strategy that will stop all debate. (I’m also working on a revision of Einstein’s Theory of Relativity…) Sorry, can’t do that. All I can offer is my observations based upon 30 years of business experience with many mistakes, some intense study and working with successful companies. My answer to the CEO was that good strategy brings you success over the long-term by offering clarity and boundaries about what you will and will not do. It identifies the core competencies that you will leverage. It guides the decisions that you make. It can change, but not frequently. Lastly, it is the result of a robust strategic thinking process. Brilliance is great, but I’ll put my money on moderately smart people with good process every time. “Yes, but how many sheets of paper should it be?” the CEO asked…
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It's lonely at the top! Todd Ordal serves as a thought-partner to CEOs and other business leaders who are challenged to identify and manage strategy. You can contact Todd at todd@appliedstrategy.info or call 303-527-0417.
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