This blog is originally published as a sub-chapter of The G.O.S.P.E.L. of Strategy.
The Problem
Are you a business leader who develops and executes strategies? Have you been frustrated with your company’s strategic planning exercises? Are you confused with so many strategy frameworks and concepts out there? Not sure where to start when it comes to strategy? Have you been disappointed by strategies that fail to deliver results? If yes, then this manual is for you.
In this manual, I’ll share with you how to develop and execute a Winning Strategy (based on my 20+ years of experience with McKinsey & Company, Boston Consulting Group, and various multi-billion-dollar companies). You are probably wondering what I meant by a Winning Strategy. Well, it is simply a strategy that increases your odds of achieving your goals significantly. A winning strategy is a rarity in this world: 98% of strategies out there don’t deliver results[i], and 90% of companies make meager profits[ii].
The Solution
After reading this manual, you’ll understand what makes a winning strategy and how to develop one. If you do so, you’ll possess a skill so rare and powerful in your arsenal. You’ll undoubtedly become one of the extraordinary leaders who successfully bring their companies to greatness again and again! You’ll become one of those few leaders who achieve their goals not by pure luck – but by a combination of luck, grit, and smart work.
Just to be clear, you are reading a practical manual – not a theoretical book. This means everything shared in this manual has been tried and battle-tested in actual business situations. In addition, I’ll keep everything simple, fast, and direct. By cutting through the unnecessary complexity, we will declutter our minds, clear the noises, and bring out the clarity. This will allow us to see the underlying patterns easily.
There have been so many books, videos, courses, systems, and journals dedicated to Strategy. Many of these materials have valuable content. Yet, the percentage of people that consume them and then achieve success is small. How come?
It is because many strategy materials focus on a narrow and particular facet of Strategy. This narrow zoom-in can be confusing. For example, when I started my career, I struggled to grasp the concept of strategy (you might feel the same). I read ‘ten’ books on strategy and ended up with ‘twenty’ different strategy recipes. So, I asked myself: “What is the unifying big picture?”
This manual, unlike many other strategy materials, presents precisely that – the unifying big picture of strategy! It is important because, with the unifying big picture, you can:
Understand better the true concept of strategy.
Grasp clearly in your mind what a strategy really is.
See how strategy relates to all other elements of your business.
Therefore, unlike many other strategy books, this manual doesn’t focus on a specific strategy tool. Although we will review the essential tools of strategy (no practical manual can get away without the tools), the emphasis of this manual is on the principles of winning strategy. Why? Three reasons.
First, knowing the tools without understanding the principles is pointless and dangerous. I once sat in an executive meeting where a consultant from Bain (a prestigious consulting firm) introduced a strategy framework called Radar 360. This prompted the CEO to challenge: “Too complicated. I am old school. For me, a strategy is about Where to Play and How to Win – as simple as that.” Then, the COO quickly offered his view: “Actually, for me, a strategy is about SWOT.” Jumping into the bandwagon, other executives started to throw their favorite strategy tools. The meeting was quickly turned into a framework debate and derailed. Indeed, so many tools out there, from the classical McKinsey 7-S framework to the cutting edge Deep Neural Network Learning. But how do you know which ones are relevant to your problem and which ones not to use? The principles of strategy will guide you.
Second, principles are timeless while tools aren’t. The relevance of tools can quickly become outdated in this 21st Century. Due to technological advancements (e.g., Internet of Things, Cloud Computing, and Cognitive Computing), many strategy tools are being superseded by the more modern tools. For example, you can now use machine learning techniques to automatically create a customized offering for a single individual based on his specific behavior – rendering the classical customer segmentation technique less relevant, if not obsolete. On the other hand, the principles of strategy (e.g., must understand the customer) are enduring: they remain valid beyond the 21st Century.
Third, due to their simplicity, principles are applicable in vast arrays of situations – making them much more versatile than sophisticated tools. Take the Extreme Gradient Boosting, for example. It’s a powerful predicting tool for machine learning. However, it’s overkill and irrelevant in many business situations. More than 90% of the time, you don’t need this tool. It is just like in martial arts: the ‘Jackie Chan’ style acrobatic fighting techniques do look awesome and wow the spectators. But, in a real fight, if you want to knock out the opponent, simple punches are easier to execute and more effective (e.g., you rarely see the flashy backflip kicks in the UFC championships). This is why, in this manual, we’ll use simple principles (and simple tools).
The Scope
In this manual, we’ll focus on Business Unit Strategy. This means corporate strategy and non-business strategies (e.g., Military Strategy, Public Sector Strategy, Sport Strategy, Personal Strategy) won’t be covered. But you may find many of the principles remain the same – as the principles of winning strategy are universal and applicable in many areas.
* * *
Are you ready to master the Winning Strategy? If yes, let’s start with the Pandemic of Losing strategy – because we need to understand the problem before we can fix it.
Continue to explore the secrets of Winning Strategy here.
[i] www.boardview.io [ii] www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/strategy-to-beat-the-odds
Comments