What I Wish I Knew About Strategy Sooner 🤔

What Strategy Really Means (and Why You Need It Now)

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Weekly Snippets 🤓

• Marketing with AI: Ditch the guesswork. This site lets you compare AI models head-to-head, so you can find the one that actually delivers on its marketing promises.

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What I Wish I Knew About Strategy Sooner 🤔

Are you tired of chasing the latest marketing trends and tech fads, only to feel like you're still missing the mark?

After two decades of fumbling around in the marketing world, I finally figured out business strategy. And no, it wasn't hidden in fancy buzzwords or complex algorithms.

Trust me, this is gonna save you a ton of time and headaches.

Here's what I'll cover:

• My weird journey to strategy

• Why practical strategy matters

• The five questions that'll shape your business

• Why you can't win by sitting on the fence

• Why "good enough" beats perfect

• Strategy Traps to Avoid & How To Fix Them

• My Final Thoughts

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My Weird Journey to Strategy

I started as a computer science nerd but somehow landed in marketing as it became more tech-heavy. I loved the blend of creativity and science, but something always felt off.

Everyone talked about "strategy," but it was like a mythical creature – often mentioned, rarely seen or underdstood.

I heard people toss around terms like "creative strategy" and "digital strategy," but I soon realised these were just fancy names for tactics, not true strategy.

It wasn't until I took a course with Roger Martin (also a great name), a trusted strategy advisor to CEOs of companies like Procter & Gamble, Lego, and Ford, that my brain fog began to clear.

Roger provides a practical strategy framework for making damn good decisions.

Roger Martin

Why Practical Strategy Matters

Roger says most business schools and companies are dropping the ball when it comes to teaching strategy. It's either too theoretical or oversimplified. .

What we need is a practical approach to strategy.

According to Roger, a solid strategy answers these five key questions:

1. What’s your winning aspiration?

2. Where to play?

3. How can you win?

4. What capabilities do you need?

5. What enabling management systems are required?

The five questions that'll shape your business

Here's a deeper look at these five crucial questions:

1. What’s Your Winning Aspiration?

This is your big goal.

It's not just about surviving, but making a real impact. It should inspire your team and guide all subsequent strategic decisions.

Tesla – they're not just making electric cars, they want to "speed up the world's shift to sustainable energy." That's the kind of goal that gets people fired up.

Ask yourself: What impact do you want your business to have on the world? How can you articulate this in a way that inspires your team and guides your decisions?

2. Where to Play?

You can't please everyone, so pick your battles.

You need to decide which markets, customer segments, or geographic areas you'll focus on.

Airbnb chose to play in the accommodation market, but with a twist. Instead of competing with hotels directly, they created a new market connecting travelers with local hosts offering unique stays.

Ask yourself: Which specific markets or customer segments offer the best opportunity for you to win? Where can you create the most value?

3. How to Win?

This is about beating the competition in your chosen arena.

You've got two main options: be different or be cheaper.

Amazon wins in retail by being the cost leader. They use their massive size and super-efficient operations to offer low prices and quick delivery.

Ask yourself: How can I offer something unique that customers will love?

4. What Capabilities Do You Need?

Figure out what special abilities you need to make your strategy work.

These should line up with your plan and be hard for competitors to copy.

Netflix's key capabilities include its sophisticated recommendation algorithm, its ability to produce high-quality original content, and its user-friendly streaming platform.

Ask yourself: What are the 3-5 key capabilities your organisation needs to develop or strengthen to execute your strategy successfully?

5. What Enabling Management Systems Are Required?

You need to set up processes, measures, and a culture that backs up your strategy.

Toyota's whole system is built around always improving (they call it Kaizen) and quality control. That's how they keep their reputation for reliable, efficient cars.

Ask yourself: What processes, metrics, and cultural elements need to be in place to support your strategic choices and develop your key capabilities?

Why You Can't Win By Sitting on the Fence

You need to get off the fence.

Here's a big insight from Roger:

Successful businesses have to choose between being different or being cheap.

Trying to do both usually means you end up stuck in the middle, with focused competitors beating you from both sides.

• Differentiation: Offer something unique that customers value highly. Example: Apple sells a lifestyle and ecosystem, not just devices.

• Cost Leadership: Be the lowest cost provider through scale and efficiency. Example: Walmart's "Everyday Low Prices" strategy.

This choice isn't always obvious, but it's crucial.

Why "Good Enough" Beats Perfect

Another key lesson from Roger: focus on getting better, not perfect.

Strategy isn't a one-time thing; it's an ongoing process of spotting gaps between where you are and where you want to be, then working to close those gaps.

This approach is more practical and effective than chasing an impossible "perfect" strategy. It lets you be flexible and respond to market changes while still keeping a clear direction.

Strategy Traps to Avoid & How To Fix Them

Through my journey and Roger's teachings, I've spotted several common mistakes businesses make with strategy:

• Mistaking tactics for strategy: A small coffee shop decides to start a loyalty card program. They think this is their "strategy" for growth. In reality, the loyalty program is just a tactic.
  

• Trying to please everyone: A local gym tries to attract everyone - bodybuilders, yoga enthusiasts, elderly people, and kids. They end up with a confusing mix of equipment and classes that doesn't fully satisfy anyone.
  

• Not making clear choices: A restaurant can't decide if they want to be known for quick, affordable meals or high-end dining experiences. They offer both cheap burgers and expensive steaks. This unclear positioning confuses customers and makes it hard to excel in either area.
  

• Forgetting to match skills with strategic goals: An IT company decides to enter the mobile app market without having any app developers on staff. They're setting themselves up for failure by not aligning their capabilities with their goals.
  

• Building resources without knowing how to use them: A small business invests in expensive CRM because they heard it's important, but they don't have a plan for how to use it.

By avoiding these traps, businesses can focus on what really matters.

For example:

• The coffee shop could decide to become the top spot for remote workers, investing in great wifi and comfortable seating.

• The gym might focus solely on being the best CrossFit in town.

• The restaurant could commit to being the go-to place for quick, tasty, affordable meals.

• The IT company could stick to their strengths in network security and expand in that area.

• The small business could start with a simple spreadsheet to track customer interactions before investing in complex software.

My Final Thoughts

Strategy isn't just for CEOs or MBAs.

It's a mindset, a way of approaching decisions that can benefit anyone.

It's not about having the shiniest tech or the biggest budget. It's about clarity, focus, and making choices that align your entire organisation towards a shared vision.

Understanding these strategy concepts has completely changed how I approach my work. It's given me a way to cut through the noise and focus on what really matters for business success.

Remember, strategy isn't about predicting the future or making the perfect plan. It's about making smart choices that give your business the best shot at success.

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The Rabbit Hole - For Those Who Want to Go Deeper

Check out these hand-picked resources:

Playing to Win: How Strategy Really Works by Roger Martin

Roger Martin's How Strategy Really Works Lecture at ArtCenter