Common Misconceptions About Business Strategy

Strategy is a core skill of senior leadership most data folks lack. Without it, leaders will never see you as "one of them." But everyone confuses strategy for Strategy Theater: A vision statement is NOT strategy. Dividing the vision into goals is NOT strategy. Quantifying the goals with OKRs is NOT strategy. A 60-slide deck with revenue and cost targets is NOT strategy. These are potential manifestations of #strategy. They look good in board presentations. But they are not, in themselves, strategic. Often, what companies think of as "strategy" is just a laundry list of what they're already doing. This is a problem because they don't know where to focus or how to prioritize. They try to do everything... And end up achieving nothing. --- Strategy, at its core, is simple. Richard Rumelt's definition is the simplest and the best. Strategy is "the application of strength against weakness." Strategy requires only these 4 things: 1. A goal. Strength and weakness only exist relative to a goal. 2. Key levers. These are the bottlenecks between you and the goal. 3. Your strengths. These are your advantages, relative to your levers. 4. The action plan. This is how you will apply your strengths to the levers. That's it. 1. Goals 2. Levers 3. Strengths 4. Action plan All the complex manifestations of business strategy - the OKRs and 60-slide decks and SWOT analyses - come back to these 4 components: - defining the GOALS - figuring out the LEVERS - understanding your STRENGTHS - translating all this into an ACTION PLAN - communicating the above in a way that makes sense Don't confuse the complexity for the core. Strategy is doing more with less. Strategy is making hard choices. Strategy is saying "no" more. Strategy is the art of focus. Good strategy is rare and valuable. No matter what level you're at, you can become strategic. It's a career superpower. #thinksenior

🚀 After 29 years in leadership, if there’s one misconception I’ve encountered time and again, it’s this: Strategy and Planning are NOT the same. Yet, many professionals use these terms interchangeably. Understanding the difference can define whether a business thrives or merely survives. 🔹 Strategy = The What & The Why A strategy is the big picture, the overarching vision that sets the direction. It answers: ✅ What are we trying to achieve? ✅ Why does this matter? ✅ How will we create a competitive advantage? A well-crafted strategy guides decision-making, ensuring every action aligns with a larger purpose. Example: A company wants to dominate the e-commerce space. Their strategy? Focus on hyper-personalization, faster delivery, and an AI-driven shopping experience. 🔹 Planning = The How & The When A plan is the execution roadmap—the detailed steps needed to implement the strategy. It answers: ✅ How will we achieve our strategy? ✅ When do we execute each step? ✅ What resources and actions are required? A plan breaks strategy into actionable steps but remains flexible as conditions change. Example: If hyper-personalization is the strategy, the plan might include: ✔ Implementing AI-powered recommendations in the next 6 months ✔ Hiring 10 data scientists by Q3 ✔ Launching same-day delivery in top 5 cities 🔹 What Leadership Taught Me About Strategy vs. Planning After nearly three decades in leadership, I’ve seen organizations struggle when they confuse the two: ❌ Too much planning, no strategy = A well-structured action plan leading nowhere. ❌ A great strategy, no planning = A vision that never turns into reality. The best leaders balance both. Strategy sets the vision, and planning brings it to life. Key takeaway: Strategy is about winning the war, while planning is about winning individual battles. Both are essential, but they serve different purposes. 💡 What’s been your biggest lesson in strategy vs. planning? Let’s discuss in the comments! 

It's easy to mistake feel-good goals for strategic choices. Let's set the record straight. The attached image of the "Corporate Strategy Map" from the (REDACTED) Company is a perfect illustration of this common pitfall. Goals Are Not Strategy Take, for instance, the objective to "improve customer satisfaction." While this sounds positive, it is not a strategy. It is a goal. The reason it does not qualify as a strategy is simple: Aiming to improve customer satisfaction is a general desire that any organization would espouse – no company intentionally strives for poor customer service. Truisms make for strategy theater, where statements like "be provider of choice" or "increase customer satisfaction" masquerade as strategy. These kinds of statements are undoubtedly agreeable, but they are not strategic. They fail to specify how an organization will create a unique position against competitors. What Does a Strategic Choice Look Like? A strategic choice involves deciding how you will be different in ways that give you an advantage - a way that improves your odds of success. It is about choosing a path that others do not take because you see and believe something that others do not. For example, instead of the broad goal to "improve customer satisfaction," a strategic choice would be to "implement a 24/7 customer service hotline to address the pain point of after-hours support, which competitors have overlooked." Three questions to Test Your Strategy for Truisms: 1. Would a competitor ever logically decide to do the exact opposite? If not, you're probably talking about a truism, not a strategy. 2. Does the choice inherently mean that there are other areas where the company will consciously decide not to focus its efforts? If it doesn't help your people say no to something, it's probably not a strategy. 3. Does it #empower people to prioritize action without seeking permission? A true strategy gives team members the confidence to act independently in line with the company's #goals —without it, you might just have a set of aspirations. In short, strategy should articulate clear strategic choices that empower your team to make coherent decisions that lead to #advantage. Ask the right questions, make the tough calls, and craft #strategy that is a blueprint for action, not just a wish list of goals. Agree? Let me know in the comments below! ---------------- PS. Want to be more strategic? My featured section has the solution.