Do you want to know a secret?
Most executives cannot articulate the strategy of their business in a simple statement.
It gets worse. Across the entire organisation, no-one else can either!
This highlights a fundamental problem with most organisations today … people at all levels are busy (and working hard) without really knowing why.
In 2008, the Harvard Business Review published a fantastic piece entitled Can You Say What Your Strategy Is? In the opening paragraph, authors David Collis and Michael Rukstad pose this question; “Can you summarise your company’s strategy in 35 words or less?”
I’ve asked this question of business teams dozens of times. The answer is seldom YES. If it is, the follow on question is; “Would your colleagues put it in the same way?” At this point things fall apart.
Why is this a problem?
If you can’t clearly explain your strategy, it’s likely that you don’t have a well-defined one. This is risky for a number of reasons.
All of these problems are perfectly avoidable. Lack of direction, poor decision making, low inability to measure success, and the proliferation of objectives are all things we do to ourselves.
Professor Donald Sull, Professor of Practice at MIT Sloan School of Management, says that in most cases, the problem starts in the C-Suite.
By this he means that senior executives fail to make the hard trade-offs on which priorities are mission critical and which can be delayed. Instead says Sull, they agree on platitudes that do not provide concrete guidance for managers throughout the organisation.
A CEO I work with understands this intimately.
Over 12 years he has guided his company to meteoric expansion and growth. To him it’s all about simplicity, focus and communication.
He is constantly saying no, making trade-offs and narrowing the focus.
He believes that a clear and well-communicated strategy, supported by a straightforward business model and only a few priorities are essential for driving consistent growth. Their stellar results speak for themselves.
So, what can be done?
Creating a proper strategy in the first instance goes without saying.
Then it’s about crafting the statement that captures its essence in a readily communicable manner. Using the method offered by Collis and Rukstad, I’ve created a template for you below.
Have a go. Customise it as you see fit. But see if you can create your own strategy statement. Simple, clear and succinct should be the test once you’re done.
Don’t be one of those executives who when asked, can’t say what your strategy is.
Use this template to ensure your response is clear, focussed and compelling.
Remember that crafting a clear and actionable strategy is not just a leadership responsibility, it is the foundation for your entire organisation’s success.
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