- is there any point when the world changes so quickly?

When it is sometimes difficult to predict what will happen next week, what is the point in looking forward five or even ten years? In such a dynamic world, isn’t strategy just a pointless academic exercise?

Well, as Michael Porter said, "No, no, no". Here is my view of why strategy is even more essential during times of great change.

Strategy is Position

Firstly, let’s be clear about what we mean by strategy. The purpose of a strategy is to gain a "position" which provides us with competitive advantage. For instance, we may decide to make ourselves more attractive to schools by gaining a greater understanding of their specific needs and producing products that meet these needs. This will also have the impact of making us less attractive to other organisations.

That is our intended position - our strategy. It tells us how we will compete, where our focus should be. What we now do to achieve that position is not the strategy - it is the tactics, the steps we take to achieve the strategy.

Our strategy guides us in the steps we should take - generally, get close to schools and invest in product development to meet the needs of schools. But we still have flexibility on how this is achieved. We can respond to radical changes in government education policy whilst our strategy, our position of focusing on schools remains unchanged. For instance, schools may be required to emphasise science over arts subjects, reducing demand for a large chunk of our product range. We adapt - our strategy remains the same, our tactics change.

Why is this so important?

Strategy enables managers to make decisions quickly - it sets the boundaries. Strategy is as much about what you don’t do as what you do. Managers at all levels of the business understand that the constants are: understand schools, develop and market products to meet their specific needs. It helps managers to make decisions about where resources should be invested, the skills required by staff, process design and so on. The strategy is like the guide rails in a bowling alley - it provides boundaries and direction.

In future posts, I’ll explore the strategy development process - how do you find your ‘position’?

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