Lab NotesStrategy and management
Strategy begins with why
Four steps to designing a company's strategy: the current reality, a summation, the high-level future, and only then the detailed roadmap.
Most people think that strategy is the HOW of getting to a certain place. It could not be farther from reality.
Strategy is not just about the future. It is also about the present. Strategy may delve into HOW, but it first begins with articulating the WHY clearly. So, how do we do that?
1. Defining the current reality
We start by defining the current state of affairs. It is important that we remain grounded in reality. Without an authentic examination of where we are right now, without the details, there is no sense in envisioning where we want to go. One has to be very clear on where one is, to get any sense of direction.
2. Summation
In order to strategize freely, the leaders now create an abstract summation of the present. This lets them detach from the current state and move on to the next step without barriers.
3. A high-level future
We call it "The Word" of the company. Many call it the vision, mission, North Star or charter. It is important to articulate clearly what the organization is willing to invest itself in. What difference does it want to make out there in the world? The more authentic it is, the more inspiring it will be.
4. A detailed roadmap
It is important to come back from the high-level future to the details. What would this future look like, if fulfilled? Without the details, it is all meaningless. This is where the leaders develop the business logic to make the future happen.
Too often, I have seen leaders jump straight from step 3 to implementation. This creates a ruckus, because the employees don't see a connection between the vision and the action of the current day.
Do you see this as a problem? How do you strategize for your company?