Monday, October 17, 2011

Good Strategy is Unexpected

most organizations will not create focused strategies

The first natural advantage of good strategy arises because other organizations often don't have one.  And because they don't expect you to have one either.  A good strategy has coherence, coordinating actions, policies, and resources so as to accomplish an important end.  Many organizations, most of the time, don't have this.  Instead, they have multiple goals and initiatives that symbolize progress, but no coherent approach to accomplishing that progress other than "spend more and try harder."

Having conflicting goals, dedicating resources to unconnected targets, and accommodating incompatible interests are the luxuries of the rich and powerful, but they make for bad strategy.  Despite this, most organizations will not create focused strategies.  Instead, they will generate laundry lists of desirable outcomes and, at the same time, ignore the need for competence in coordinating and focusing their resources.  Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests.  Strategy is at least as much about what an organization does not do as it is about what it does.

ACTION POINT:  What are the actions and interests you should say no to?

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