What Exactly is Strategy? And Why is it So Hard to Pin Down?

The term "strategy" is bandied about in business circles constantly, yet for many, a clear definition remains elusive. When talking about strategy with managers and leaders, one of the things that strikes me most often is how, when you talk about strategy, they can't actually define it. They don't know the words to describe it. This lack of a shared understanding is a significant hurdle in effective strategic planning and implementation.

So, what is strategy? I describe it simply as How you get to where you want to get to. This highlights the crucial aspect of strategy as a pathway or a plan of action. It emphasises the directional nature of strategy, linking the current state to a desired future.

This definition also makes it clear that there are two parts. First, the definition of the desired future state and second, the way to get there. Despite this, however, the two are inextricably linked.

I like to play a game when I run strategy workshops. I ask delegates to write down their definition of strategy on a card, and then we share the results. I almost always find a range of answers - some quite focussed, many very vague. This is in the context of having been invited to a strategy workshop!

The other game I like to play is to get each individual to paint a picture of where they see their organisation in two or three years time. The range of responses and distinct lack of similarity between them really helps the team see the importance of finding and uniting behind a common picture.

I digress, the difficulty in defining strategy stems from several factors:

• Lack of Clarity and Shared Understanding: The fact that many managers struggle to define it suggests a fundamental lack of clarity around the concept. This can lead to different interpretations and a failure to align on a common understanding within an organisation. Indeed, research suggests that a significant majority of employees are unaware of or do not understand their organisation's strategy.

  
  

• Confusion with Other Concepts: Strategy is often confused with taglines. Strategy is the where and how and should be specific and actionable, unlike a potentially vague tagline.

  
  

• Overemphasis on Operational Effectiveness: Companies sometimes mistake operational effectiveness – doing things better – with strategy, which is about doing things differently from competitors. Focusing solely on operational improvements leads to competitive convergence, making a company indistinguishable from its rivals.

  
  

• Difficulty in Translating Vision into Action: Executives may struggle to translate lofty rhetoric about mission, vision, and purpose into concrete actions that employees can understand and implement in their daily work. Employees need specific answers to "What's in it for me?" (WIIFM) and need to understand how the new strategy should change their jobs.

  
  

• Strategy as an Ongoing Process vs. a One-Time Event: Some may view strategy development as a singular event (like an annual off-site meeting), rather than an ongoing process of adaptation and refinement based on continuous feedback and environmental changes. This can lead to a static view of strategy that doesn't reflect the dynamic nature of the business world.
  

In conclusion, while essentially a simple concept – how to get where you want to get to – the definition of strategy is often elusive due to a lack of clarity, confusion with other business concepts, an overemphasis on operational improvements, difficulties in translating vision into actionable steps, and differing perspectives on its temporal nature. A clear and shared understanding of what strategy truly means is the foundational first step towards effective strategic planning and successful implementation.