What is Strategy?

memorize this

hey! who’s that?

hey! what the fcuk are you doing?

That’s your

place!

“Strategy is a big-complicated thing and any

single definition could be suicidal.”

To understand the meaning behind this most used and even more misused word, one needs to understand the

five meanings of strategy.

The lesser known 5 P’s

To understand the meaning behind this most used and even more misused word, one needs to understand the

five meanings of strategy.

The lesser known 5 P’s

The lesser known 5 P’s

Five different ways of

looking at meaning of

strategy

Plan Strategy is a plan of action into future, telling us where we are currently, where do we have to go and what actions in a particular order we have to

take to reach there.

Strategy is a pattern, a sort of consistency in the behavior over time. Pattern

What is it?

I don’t know – it just

fell out of my bum.

Both are valid definitionsorganizations make plans for future

and they also evolve patterns out of their past

One can be called intended strategy and the other realized strategy.

Both are valid definitionsorganizations make plans for future

and they also evolve patterns out of their past

One can be called intended strategy and the other realized strategy.

Both are valid definitionsorganizations make plans for future

and they also evolve patterns out of their past

One can be called intended strategy and the other realized strategy.

Both are valid definitionsorganizations make plans for future

and they also evolve patterns out of their pastOne can be called intended strategy and the other realized strategy.

This will be

great.

This was

great.

Both are valid definitionsorganizations make plans for future

and they also evolve patterns out of their pastOne can be called intended strategy and the other realized strategy.

This will be

great.

This was

great.

Ideally a mix is followed. Some thinking ahead and some on the way learning-and-adaptations.

One’s strategy mix should depend upon one’s ability to predict unexpected events…

Oh so, there’ll be floods on 28th.

Our office is on ground floor

Let’s move to top floor!

One’s strategy mix should depend upon one’s ability to predict unexpected events……and need to react to unexpected events.

Oh so, there might be floods on 28th.

Our office is on top floor

So floods don’t matter!

One’s strategy mix should depend upon one’s ability to predict unexpected events……and need to react to unexpected events.

One extreme means no learning…

Rigid Strategy Keep doing the same old tried but tested things!

One’s strategy mix should depend upon one’s ability to predict unexpected events……and need to react to unexpected events.

One extreme means no learning……other means no control.

No Strategy Business is a fun chemistry lab, but things explode at times!

One’s strategy mix should depend upon one’s ability to predict unexpected events……and need to react to unexpected events.

One extreme means no learning……other means no control.

To put it differently, it should depend upon how much does one want to learn on the way and how much control does one wants to exercise.

Another way of looking at strategy is thinking of it as a position of some advantage. It’s about creation of a valuable and unique position.

‘Position’ is downward and outward looking.

Position

Perspective is a organization’s fundamental way of doing things, like, the McDonald’s way, the Tata

way or the Google way.

It can be seen as a set of values, priorities, beliefs, behaviors,

attitudes, actions and responses.

‘Perspective’ is upward and inward looking.

Perspective Delight customersInvest in R&D

Entrepreneurial cultureFast

Cost cuttingSocial responsibility

Again, both are valid definitions and a mix of both is required.

Changing of position within a perspective may be easy…

Change Within Perspective

Changing of position within a perspective may be easy……whereas changing position while trying to maintain perspective is not

Change Outside Perspective

Changing of position within a perspective may be easy……whereas changing position while trying to maintain perspective is not

Google launching a printed directory is still imaginable…

Google Printed Directory

Changing of position within a perspective may be easy……whereas changing position while trying to maintain perspective is not

Google launching a printed directory is still imaginable……but imagine Google launching a restaurant!

Google Restaurant

Ploy is a specific trick intended to outwit an opponent or competitor.

Its like playing mind games to confuse the competitor.

A company might buy land to give the impression that it intends to expand its capacity, in order to discourage a competitor from

building a new plant

Ploy

to strategize or not to strategize?

“Strategy sets direction”

On one hand we know the path required to reach from one point to another.

“Strategy sets direction”

On one hand we know the path required to reach from one point to another.

On other hand it turns us blind to the unpredicted dangers on the path.

“Strategy focuses effort”

On one hand strategy helps in focusing everyone’s effort to the same direction.

“Strategy focuses effort”

On one hand strategy helps in focusing everyone’s effort to the same direction.

On other hand “Groupthink” arises and opportunities and threats may get unnoticed.

“Strategy defines the organization”

This piece of paper says exactly who we are and what we do.

On one hand strategy provides a sharp and single meaning to organization.

“Strategy defines the organization”

Uhhh! So what exactly rest of the papers on the table do?

On one hand strategy provides a sharp and single meaning to organization.

On other hand that sharp and single meaning could be too simple that rich complexity may get lost.

This piece of paper says exactly who we are and what we do.

“Strategy provides consistency”

On one hand strategy reduces ambiguity and brings consistency in action and results.

“Strategy provides consistency”

On one hand strategy reduces ambiguity and brings consistency in action and results.

On other hand it curbs creativity and perfection over time.

To understandwhen and when not to

strategize,how much and how less to

strategizeand

how and how not to strategizeis the key.