What an insightful reframe for me. The most powerful idea for me is defining the principles to determine which priorities are the right ones to take each day.
I like your focus on stripping strategy back to value exchange and daily practice. That’s where most companies lose the plot.
Where I diverge a bit is that “maximizing value created and captured” feels more like the outcome of strategy than its formula. In my view, strategy is the set of choices that determine where and how that value is created and captured — I refer to it as a Strategic Formula. Without those structural choices, even great execution just maintains parity.
Maybe its a language thing, but "to make a business stronger" is a goal. "To move a business in a certain direction" is also a goal. Even if they're both a little woolly.
What an insightful reframe for me. The most powerful idea for me is defining the principles to determine which priorities are the right ones to take each day.
We can’t make all the decisions in advance. But we can decide how we’ll make them
I like your focus on stripping strategy back to value exchange and daily practice. That’s where most companies lose the plot.
Where I diverge a bit is that “maximizing value created and captured” feels more like the outcome of strategy than its formula. In my view, strategy is the set of choices that determine where and how that value is created and captured — I refer to it as a Strategic Formula. Without those structural choices, even great execution just maintains parity.
Of course, “maximizing value created and captured” is the outcome of strategy, I totally agree.
Thanks for the simple explanation that’s often made complex by consultants and academics.
Many thanks, I do my best to simplify what must be simplified
I don’t agree that a strategy is a plan, but I believe it might be simply a semantics matter.
If interested, I wrote a post on the difference between the two called “Congratulations, you’re busy - and still not strategic”.
Other than that, great post!
Many thanks for the feedback. I also don't think because a strategy is a plan. We just can't plan for the future because we don't know it.
Great article, I couldn’t agree more!
Thanks!
Maybe its a language thing, but "to make a business stronger" is a goal. "To move a business in a certain direction" is also a goal. Even if they're both a little woolly.
From my point of view, "to make a business stronger" can be a goal, but why do we need such a goal? Wouldn't it be easier to do without it?
I don't know. You're the one who said: "you need a strategy to make the business stronger. That’s it."
I would personally always strive for much more specific goals.