As I meet with countless CEOs and P&L leaders at clients, via connections, at speeches, etc., I pay attention to what is top of mind. Strategy is always top of mind for the most successful business leaders! After all, if a CEO makes in the millions (the top 10 paid CEOs from 2018 made between $66 million and >$500 million), he/she is being paid for more than just executing the plan. Certainly, strategy is integral to the future success of the organization.
Yet, I see a lot of confusion about strategy. It isn’t complex. Strategy is figuring out the ‘what’. Whereas, tactics is the ‘how’. Strategy isn’t necessarily long-term. Who says ‘what’ should be long-term? In fact, some of the most successful CEOs are now focusing on rapid and agile strategy. Isn’t that what we need to succeed in today’s Amazon-impacted, rapidly changing business environment?
Focusing on the ‘what’ focuses on the outcomes and goals. In essence, where should your business end up? As Peter Drucker would say, strategy is “doing the right things”; whereas tactics is “doing things right”. Take a step back and think about his profound thinking. It is easy to spend all your time “doing things right”, isn’t it? It certainly is for me, and I am an expert in strategy!
What do you think Jeff Bezos is thinking? How to execute the best logistics plan or how to control the logistics landscape, just like a chess game? Of course, strategists need managers who are good at both strategy and tactics to make any strategy come true. And it is also true that strategies rarely fail in composition. Yet, more often than not, they fail in execution. Thus, it seems we must have both! We better know which is which and not be thinking strategy and tactics are long-term vs. short-term, or we will go the way of Sears and Toys R’ Us. (Quite sad as I still remember going to Toys R’ Us as a child around Christmas to explore all the possibilities. It was truly an experience!)
Have you thought about your strategy lately? If not, you better get on it before the next Amazon passes you by. And, let’s not get cocky, Sears used to be the Amazon in my lifetime. You never know who the next Amazon will be. If you are interested in a strategic assessment, contact us.