This blog is originally published as a sub-chapter of The G.O.S.P.E.L. of Strategy.
Winning Strategy = Result of Following the Principles of Strategy
A winning strategy is not a mystery. In fact, it’s not hard. You can do it! You simply have to know what makes a winning strategy. Just as there are principles of physics (e.g., the principles of motion, the principles of gravity, and the principles of mass and energy), there are also principles for strategy. Just as the right diet and exercise program makes you physically stronger, certain things applied to your strategy will make your strategy stronger. It’s almost like a direct cause and effect: if you know and apply the principles, the results are predictable – you can develop winning strategies.
To help you understand what makes a strategy a winning strategy, we will discuss a set of principles called the Guiding Principles of Winning Strategy in this chapter.
Importance of Defining the Guiding Principles
Why do some people and businesses successfully achieve their goals and become the winners, while certain people and businesses get stuck in a ‘black hole’ of failures? Why do some people work hard but still fail in the end? While other people exert far less effort and still excel? Answer: the winners follow a set of proven principles.
This answer may sound dull and simplistic, but it is the truth. In fact, following a set of proven principles is the only thing that consistently delivers success in real life, believe it or not! Any other path to achievement and success requires random luck. This path doesn’t.
Since ancient times, from Aristotle to Elon Musk, the world’s greatest minds have always started by defining the principles when solving a tough problem. This approach (i.e., defining the principles first) is favorable for three reasons:
Defining the principles helps us to capture the purely indubitable truths. Principles are none other than self-evident truths (i.e., things we know to be true for sure). By defining the principles, we adopt the basic truth of things as the foundation for our knowledge and understanding. For example:
The great mathematician-philosopher René Descartes advised that the first thing one must do in solving a problem is to “systematically doubt everything one could possibly doubt until one was left with what one saw as purely indubitable truths.”[i] In other words, one must define the principles first.
Similarly, Aristotle, one of the greatest philosophers of all time, suggested that every solution should start at the same place, i.e., the principles (aka the undeniable truth of nature). In his words: “It is clear, that in the science, as elsewhere, we should try first to determine questions about the first principles.”[ii]
Once defined, the guiding principles are beneficial for...
…understanding the problem: Principles allow us to deconstruct any problem, no matter the complexity, into its basic building blocks that you can understand. Once you understand the basics of the problem, you can find the root causes easily. Once you know the root causes, you can develop a solution that will address the root causes of the problem.
…and formulating the solution: Principles provide an overarching model that allows you to interpret the world around you. In other words, principles are the framework that we can use to make decisions. Based on the newly defined principles, you can then derive new processes – which will shape new practices and, in turn, lead to a new, improved performance.
What does this mean for us? It means we need to define a set of proven principles that, if followed, will allow us to deliver winning strategies consistently.
Six Guiding Principles of Winning Strategy
The Guiding Principles of Winning Strategy is a set of fundamental truths that guide us on how to deliver winning strategies. These fundamental truths (i.e., the principles) are derived from two sources.
The first source is the Theories of Strategy (derived from academic researches) that explain what actions deliver a winning strategy (e.g., being unique creates a competitive advantage). The principles derived from this source are developed systematically with careful observation, rigorous skepticism, and conscious awareness of any hidden assumptions. Therefore, they are scientifically robust.
The second source is the Best Practices of Strategy (derived from practical experience) on how to deliver a winning strategy (e.g., the importance of communication and standardized systems during implementation). While the principles derived from this source aren’t systematically developed, they are experience-based and battle-tested in various real-world situations. Therefore, they are empirically proven.
Based on academic theories and best practices, there are six surprisingly simple but powerful principles that guide us in developing the kind of strategies we all yearn for – the winning ones. These six principles make a single, inseparable set, i.e., if you want to have a winning strategy, then you must do all the six principles below:
Clearly define your goal. It must be ‘clearly’ because no one can chase and be committed to a vague goal.
Thoroughly analyze your options. It must be ‘thoroughly’ because your best solution depends on the options available for you – whether you are aware or not of these options.
Sharply formulate your strategy. It must be ‘sharply’ because a strategy requires a sharp focus to overcome constraints and achieve the goal.
Faithfully develop your plans. It must be ‘faithfully’ because action plans must conform to the strategy.
Relentlessly drive your execution. It must be ‘relentlessly’ because execution must overcome roadblocks.
Vigilantly look out for results and changes. It must be ‘vigilantly’ because results, changes, and threats need to be monitored all the time.
Notice that each principle corresponds to the six distinct but inseparable phases of winning (the acronym is G.O.S.P.E.L.):
Goal Setting
Option Analysis
Strategy Formulation
Plans Development
Execution Management
Look Out
The Six Phases of Winning
The secret of winning strategy lies at the end-to-end perspective (i.e., the entire G.O.S.P.E.L., not just the single S phase). If you can remember only one thing from this manual, then please remember this one: Winning strategy is about doing all the six principles above. If you miss any of the principles, you risk failure. Let me share a few examples:
A statement of goal, if not translated into execution, won’t be realized. Winning Strategy is beyond goal-setting.
Much analysis, if not directed by any goal, only leads to analysis paralysis. Winning Strategy isn’t merely about options analysis.
A strategy is useless if not translated into action plans and execution. Winning Strategy is more than strategy formulation.
A set of action plans, unguided by a strategy, is aimless. Winning Strategy is above a set of plans.
Actions, if not driven by a strategy, are ineffective. Winning Strategy is beyond managing execution.
Ignoring changes is a recipe for failure. However, looking out for changes without knowing the intended direction is inoperable, exhausting, and frustrating. Winning Strategy determines what and where to look.
I hope you are starting to see the big picture of winning strategy. In case you are interested to read more, in The GOSPEL of Strategy, I go through these six principles, one by one, in-depth.
Continue to explore the secrets of Winning Strategy here.
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