Strategy - it's not another thing to do, it's THE thing!
In the fast-paced world of running a business, especially for small, medium, early stage or generally the lean and mean ones, leaders have to do more than just handle day-to-day demands.
Founders, team leaders, GMs and all-round bosses need to step back and work on the business, not just in it. This isn't some extra thing – it's crucial for keeping the ship sailing smooth and heading in the right direction for the long haul.
One big reason for this is staying ahead of the curve. If you're stuck in the weeds of everyday tasks, you might miss the bigger shifts in what customers want or changes in your industry. Leaders who spend time on strategy can see these things coming and tweak their game plan accordingly, turning potential challenges into new opportunities.
Having a clear game plan also helps leaders set the tone for their team. Without a solid strategy, you risk having everyone doing their own thing without a common goal. When leaders actively work on their business strategy, it's like handing out a roadmap to everyone, making sure everyone's on the same page and rowing in the same direction.
If you're only focused on the nitty-gritty details, you're setting yourself up for burnout and getting stuck in one place. Leaders need the headspace to innovate and drive their business forward. Working on strategy means you can delegate the day-to-day stuff effectively, giving you time to make the big calls and keeping the whole team on a path of constant improvement.
When it comes to strategic planning though, not all strategies are created equally. Uou've likely heard of the saying, "garbage in, garbage out."?
Basically, it means if you put junk into something, you're guaranteed to get junk out of it. Now, when it comes to strategy, it's like saying if the info you use to plan is lousy, your whole strategy is probably going to be a bit of a mess too.
Picture this: a company decides to grow based on outdated or totally wrong data. Maybe they didn't check the latest market trends or relied on sketchy financial predictions. Maybe they got their info from some of the team who aren’t up to speed, or the team is homogeneous and all sees the world and their situation in a really similar way. So if the starting info and team is off, their big plans—like entering new markets or launching new products, might end up being way off the mark. That's the garbage-in, garbage-out effect in action.
To avoid this mess, leaders need to be picky about the info they use and the team that feeds in and makes the calls. It's all about having the right data—current, accurate, and solid, and the right team (and team culture!).
Regular check-ins and tweaking the strategy based on real-time info also help to keep things on track. Because, you know, if you're gonna plan something big, might as well start with good stuff so you don't end up with a mess on your hands.
Take it from Caterina Fake, Co-founder of Flickr "So often people are working hard at the wrong thing. Working on the right thing is probably more important than working hard.” Her take highlights that strategic planning and calibrating back to it (and adjusting as needed) isn't just a good idea – it's a fundamental part of doing business right.
“Strategic leaders must not get consumed by the operational and tactical side of their work. They have a duty to find time to shape the future”
For some extra reading, check out "The Art of Strategy: A Game Plan for Success in Business and Life" by Avinash K. Dixit and Barry J. Nalebuff. It's a practical guide to making strategic decisions in business and life that's down-to-earth and easy to digest.
If you need a model to help form the strategy, the ‘Play to Win’ Model is a goodie, and there’s a good write up of it here.
