How to Build a Practical Business Strategy

A roadmap is not a strategy! Yet, most strategy docs are roadmaps + frameworks. This isn't because teams are dumb. It's because they lack predictable steps to follow. This is where I refer them to Ed Biden's 7-step process: — 1. Objective → What problem are we solving? Your objective sets the foundation. If you can’t define this clearly, nothing else matters. A real strategy starts with: → What challenge are we responding to? → Why does this problem matter? → What happens if we don’t solve it? — 2. Users → Who are we serving? Not all users are created equal. A strong strategy answers: · What do they need most? · Who exactly are we solving for? · What problems are they already solving on their own? A strategy without sharp user focus leads to feature bloat. — 3. Superpowers → What makes us different? If you’re competing on the same playing field as everyone else, you’ve already lost. Your strategy must define: · What can we do 10x better than anyone else? · Where can we persistently win? · What should we not do? This is where strategy meets competitive advantage. — 4. Vision → Where are we going? A roadmap tells you what’s next. A vision tells you why it matters. Most PMs confuse vision with strategy. But a vision is long-term. It’s a north star. Your strategy answers: How do we get there? — 5. Pillars → What are our focus areas? If everything is a priority, nothing really is. In my 15 years of experience, great strategy always come with a trade-offs: → What are our big bets? → What do we need to execute to move towards our vision? → What are we intentionally not doing? — 6. Impact → How do we measure success? Most teams obsess over vanity metrics. A great strategy tracks what actually drives business success. What outcomes matter? → How will we track progress? → What signals tell us we’re on the right path? — 7. Roadmap → How do we execute? A roadmap should never be a list of everything you could do. It should be a focus list of what truly matters. Problems and outcomes are the currency here. Not dates and timelines. — For personal examples of how I do this, check out my post: https://lnkd.in/e5F2J6pB — Hate to break it to you, but you might be operating without a strategy. You might have a nicely formatted strategy doc in front of you, but it’s just a… A roadmap? a feature list? a wishlist? If it doesn’t connect vision to execution, prioritize trade-offs, and define competitive edge… It’s not strategy. It’s just noise.

Today's episode will make you better at developing a strategy, and evaluating other people's strategies. Roger Martin is one of the world’s most sought-after experts on strategy, and the author of "Playing to Win", one of the most popular (and most actionable) books on learning the art of strategy. He’s written extensively for the Harvard Business Review; consulted for dozens of Fortune 500 companies, including P&G, Lego, and Ford; and written 11 other books on strategy, leadership, and clear thinking. In our conversation, we cover: 🔸 The five key questions you need to answer to develop an effective strategy 🔸 How most companies get strategy wrong 🔸 How to avoid “playing to play” instead of playing to win 🔸 Real-world strategy examples from Figma, Lego, Procter & Gamble, and Southwest Airlines 🔸 Why you need to either differentiate or be the lowest cost 🔸 Shortcomings of current strategy education 🔸 Much more Listen now 👇 - YouTube: https://lnkd.in/gTyPQZus - Spotify: https://lnkd.in/gKWWm-Fp - Apple: https://lnkd.in/gCing92Q Some key takeaways: 1. Strategy is an integrated set of choices that compels a desired customer action. 2. Great strategists aren’t born; they’re made through practice. Even if you see yourself as more operational than strategic, remember that strategy is a skill that anyone can develop over time. Just like any skill, it improves with practice. 3. To win in business, you must be either a low-cost provider or differentiated. If you’re neither, competitors can “bully” you and take market share. Two questions can help you figure out whether you’re winning in these ways. First, could you match competitor price decreases and remain more profitable than them? If not, you’re not a low-cost provider. Second, could customers essentially flip a coin between you and a competitor? If so, you’re not differentiated enough. 4. Use the Strategy Choice Cascade to define and implement effective business strategies. This framework consists of five essential questions: a. What is our winning aspiration? Clarify what you aim to achieve with your strategy. This guides all subsequent decisions and actions toward a clear objective. b. Where will we play? Select specific markets, segments, or niches where you will compete. Focus is crucial; trying to be everywhere can dilute effectiveness. c. How will we win? Determine your competitive advantage. You must either offer customers superior value or operate at a lower cost than competitors in your chosen areas. d. What capabilities must be in place to win? Identify and build capabilities that are critical for executing your chosen strategy effectively. These should be distinctive strengths that set you apart from competitors. e. What management systems are required to ensure the capabilities are in place?

"Strategy is not the consequence of planning, but the opposite: its starting point." – Henry Mintzberg Developing a strategy is about creating a clear, actionable roadmap to achieve your most critical goals. It’s not just about what you want to accomplish, but how you’ll get there. Great strategies are focused, adaptable, and grounded in reality. They turn vision into execution and effort into results. Here’s how to develop a winning strategy: 1. Define the End Goal Start with the outcome in mind. What does success look like? Be clear, specific, and measurable. A powerful strategy is built around a compelling goal that aligns with your overall vision. Ask: * What are we trying to achieve, and why does it matter? * How will we know we’ve succeeded? 2. Assess Your Current Reality You need to know where you are to chart the path to where you want to go. Take an honest look at your current situation, strengths, weaknesses, and opportunities. Ask: * What resources, skills, and assets do we already have? * What challenges or gaps must we address to move forward? 3. Identify the Key Levers Not everything matters equally. Strategy is about focusing on the critical few actions or decisions that will make the biggest impact. Ask: * What are the 2–3 priorities that will move the needle? * What must we focus on to achieve the greatest return on effort? 4. Anticipate Obstacles Great strategies are proactive. Identify potential roadblocks or risks in advance, and build contingency plans to address them. Ask: * What could get in the way of success? * How can we mitigate these risks or turn them into opportunities? 5. Create an Action Plan A strategy without execution is just a wish. Break your strategy into clear, actionable steps with defined roles, responsibilities, and timelines. Ask: * Who is responsible for what? * What milestones will keep us on track? 6. Measure and Adjust No strategy survives unchanged. Build systems to regularly monitor progress, gather feedback, and adapt as needed. Agility ensures your strategy stays relevant. Ask: * How will we track progress and measure success? * What feedback loops will help us adjust along the way? 7. Communicate Relentlessly A strategy must be understood to be executed. Clearly communicate the goal, the priorities, and the plan to everyone involved. People need to know how their actions connect to the bigger picture. A great strategy doesn’t try to do everything—it prioritizes the right things. It bridges the gap between where you are and where you want to go, providing focus, clarity, and momentum. Ask yourself: What’s the bold move that will drive the greatest impact? Build your strategy around it, take decisive action, and stay committed. Remember: a clear strategy is the first step to extraordinary results.