This blog is originally published as a sub-chapter of The G.O.S.P.E.L. of Strategy.
The Importance of Strategy
Successful people from all walks of life recognize this single truth: the importance of having a winning strategy. They learn from experience, mentors, or books that it is essential to have the right strategy to achieve your goals. Without an effective strategy, your actions are bound to be random, which significantly jeopardize your chance of success.
Jim Rohn, a foremost business philosopher, once proclaimed: “Success is 20% skills and 80% strategy.”[i]
Similarly, baseball legend Yogi Berra declared: “Strategy sets you up for success.”[ii]
Morris Chang, a self-made billionaire, wisely said: “Without strategy, execution is aimless.”[iii]
Leon Trotsky, Russian revolutionary leader, once said: “You may not be interested in strategy, but strategy is interested in you.”[iv]
For Sun Tzu, a famous military strategist, strategy is the key to victory. According to him: “Every battle is won or lost before it’s ever fought.” Bad strategy leads to defeat. Good strategy leads to victory.[v]
The Bridge to Victory
Think of your strategy as your bridge to victory. A bridge is a structure constructed to provide passage over a detrimental-to-cross obstacle. Designs of bridges vary depending on the function of the bridge, the nature of the terrain where the bridge is anchored, the material used to make it, and the funds available to build it.
Similarly, Strategy is a construct you build to overcome challenging obstacles and provide passage from where you are now to where you want to be. Designs of strategies also vary depending on your goal, the nature of your company’s external environment, and the limit of your resources/capabilities. If you want to achieve your goal and overcome your obstacles, you need a (winning) strategy.
The Holy Trinity of Business
Strategy is especially important in business. Because for a company, a strategy is also about survival. For it is the strategy that ‘compels’ the customers to give the company its cash.
Winning Strategy is one of the Holy Trinity of business, i.e., the three things that any business must have if it wants to survive:
Cash. Having enough cash to pay bills ensures the short-term survival of a business. When a company runs out of money, it dies. Treat your cash like your life-blood: don’t waste it.
Customer Base. Having a group of customers (who repeatedly purchase) ensures the medium-term survival of a business. The customer base is the cash generator of the business. When a company loses its customer base, it won’t survive for long. Treat your customers like your king: make sure they are pleased.
Winning Strategy. Having the correct strategy enables a business to develop, defend, and grow its customer base. It is a recipe for winning. It ensures the long-term survival of the company. Treat your strategy like your god: follow his direction always.
Continue to explore the secrets of Winning Strategy here.
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