“If you don’t have a strategy...

September 26, 2024

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...you’re part of someone else’s strategy.”



As we approach the final quarter of the year, many leaders’ thoughts and communications are geared towards next year’s strategy. Critical questions will need answers such as, “What assumptions are we making about the markets and the competition?” and “What are the critical conditions necessary for sustainable success?” as well as “How will we continue to compete in our markets?” I’ve long been a fan of Alvin Toffler who, as a futurist, is one of the writers who had a profound influence on my own leadership thinking. His quote in the title is one of the many examples of his thinking.


In this discussion, we address each of the above questions with insights on how to answer each one. As we believe there is something of an order to how we listed the three questions, we will address them in that order as well.

  • What assumptions are we making about our markets and competition? ~ There is an expression we use in our coaching with clients around strategic thinking that goes, “Plans are inherently wrong as they are only as good as the assumptions they are grounded on.” No one can accurately predict the future so effective leaders make educated risk assumptions aligned to the external drivers of change and the internal capabilities and capacity of the business itself. The tool we use is the SWOT (Strengths, Weaknesses, Opportunities, Threats) Synthesis process. Others refer to this as TOWS, but hey, tomāto – tomǎto! Our view of the external environment is based on the PESTEL (Political, Economic, Socio-Cultural, Technological, Environmental, Legal) Environmental Assessment. Those assumptions combined with an objective view of internal capabilities and capacities creates the proper context for the new strategy.



  • What are the critical conditions necessary for sustainable success? ~ One of the common blind spots leaders have lies in creating strategic objectives primarily based on timelines versus conditions. To use an individual example, a common thought process used by many is determining when to retire. Most will use an age to define retirement. However, we use a set of conditions that define our retirement decision as the conditions are a more predictive variable for success. So too, in the business strategic thinking process, what are the conditions, both external and internal, that need to exist to achieve success. A business leader may state the business will achieve X revenue in Y years. However, without stating the critical conditions necessary to achieve X revenue in Y years, the timeline is arbitrary at best and a recipe for a flawed strategy.


  • How will we continue to compete in our markets? ~ It is at this point where leaders create specific strategic objectives to execute in the context of the stated (and documented) assumptions and conditions. The strategic objectives direct how the business will win in their respective markets. This is an important distinction as leaders communicate the strategic objectives throughout the organization. There is a crucial difference in stating a production objective by itself and a production objective communicated in the context of gaining market share in their respective markets. Context matters greatly in communicating a sustainable strategy.


The key to success in any strategy lies in how well it is thought out and documented in the context of the new reality. Even more important is how well the business flexes and adapts to changing assumptions and conditions. Failure to address these in the flow of execution and only focusing on the outputs, positive or negative, is to lose the advantage of knowing how effective and sustainable the new strategy really is. It also results in your business becoming part of someone else’s strategy!


How sustainable is your business strategy and how do you know? If you are not sure, we can help!


Lead Well!

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