Strategy is about choice, coordinated, integrated, mutually reinforcing choices. But strategy is also about trade-offs. In fact, by making a choice to do one thing, one has also chosen not to do one thing. Thus, the easiest way to explains strategy is to know what you do not do. Who doesn’t your business serve? Which categories don’t you play in? Who don’t you hire? Who doesn’t get promoted in your company? Strategy is more about what you do not do, what is the dealbreaker?
We are emphasizing this aspect of strategy because many organizations miss it, it’s the filter for good versus bad strategy. Good strategy is clear about what it is the organization doesn’t do. Great organizations know what they don’t do. They know what inventory levels are not allowable, they know the efficiencies that do not cut the mark. Again, what is it you do not do?
It’s easier to know what you do not do, more than what you do. If an organization needs strategic commandments, then the things they do not do should be those commandments. Which markets don’t you serve? Which products don’t you create? Which customer don’t you consider? What don’t you do in your organization? This is the first step in strategic clarity.
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