Find the sweet spot in your strategy in 2022
We are working through our series on building strategy step by step. So far, we’ve covered mission, vision, and values. This month, we’re covering strategy - how to create one, and some common pitfalls.
There is little agreement about what strategy is and what it does. Defining strategy is like trying to nail jello to a wall—my advice: create a definition that works for you and stick with it. You can use the one below or invent your own. Focus on what job your strategy will do for you and your team. Provide focus? Bring clarity? Encourage alignment? Make decisions?
Strategy in a word? Choice.
I work with leaders who need to build or reset strategies after a significant change.
STRATEGY: A WORKING DEFINITION
A STRATEGY IS THE SET OF CHOICES YOU WILL MAKE NOW,
IN THE FACE OF UNCERTAINTY, THAT DESCRIBES
HOW YOU WILL ACHIEVE YOUR ASPIRATION.
Two keywords to examine: choice and aspiration. For help building a vision and aspiration, please read our blog post here. Once you clarify your destination, it’s time to choose your strategy or HOW you’ll get there.
The experience of building strategy can feel uncoordinated, messy, and frustrating. But a well-crafted plan is worth the investment. To facilitate your strategy journey, look out for these three common mistakes.
Mistake #1. Assuming strategy is futile in times of change
Goodness knows the only thing constant is change! The most common questions from my clients over the past two years have been: Should I invest energy to build strategy during volatile, uncertain times? Will a strategy guide my team or become outdated as soon as the ink dries?
Joan Magretta’s article, Jim Collins, Meet Michael Porter, discusses Porter’s five tests of a good strategy. Test five: your strategy should be durable and long-term. It should not change year over year.
“Continuity of strategy helps companies to make good choices about whether and how
to change in the face of turbulence.” Joan Magretta
Years ago, I worked for the cable network, TBS. Before landing on the comedy brand, Very Funny, the team cycled through several brand positions, including as a movie network for men and an “everything for everyone” general entertainment channel. The group invested valuable resources with each change but left little time for any brand to gain traction.
It takes years to build a sustaining, winning strategy. Invest the time and let your choices take root.
Once your strategy is in place, exercise your strategic agility to help thrive amid the turmoil. Find a balance of skill to sidestep the worst impacts and durability to absorb inevitable blows to your business. For more on strategic agility, check out 6 Principles to Build Your Company’s Strategic Agility, HBR
Mistake #2. Too big and broad or too tiny and tactical.
There is an art to the sweet spot of strategy. Teams must strike a balance between bold, breakthrough concepts and practical tactics.
Not too broad: When I ask clients to share their strategy, many share something like this:
“Double our business in three years.”
The question that comes to mind is “how?”. While bold and motivating, your team will struggle to bring it to life without more clarity of what choices you are making.
Not too tactical: Other clients might share a strategy like this:
“Serve 1,000 customers at 20 locations with 100 employees”.
The question that comes to mind is “why?” While specific and measurable, this is more of a goal than a set of future choices.
Strike a balance of boldness and clarity by defining how you will double. Will you enter a particular new market? Go after a new customer base or audience? Form a joint venture? Change your business model?
Mistake #3. Not making choices or tradeoffs.
Can you see the “hell no” in your strategy? A great strategy gives teams a filter to sift through hundreds of options, ideas, opportunities, and partners. It should be clear what is in-bounds “hell yes” and out of bounds “hell no” for your business.
“You can do anything but not everything,” David Allen.
Focus is your friend. Every organization has limited resources. Make sure your strategy has guardrails to support a fewer better approach.
I recently worked on a nonprofit focused on health and fitness for kids. Through their strategy work, they make the difficult but powerful choice to forego earlier plans for national expansion to focus their resources and effort on the state of Georgia.
Before
Scale key programs to a national level
After
Deliver more significant impact in Georgia with a deeper, whole-child approach to accelerate change in communities in most need.
Channeling resources for at-risk children in Georgia is a clear choice. The team can now quickly make “hell yes” and “no” decisions.
As you make decisions to grow your organization or business, remember to stay the course, the right balance and make sure your choices are clear.