What is strategy?
Strategy is an optimal path to achieving a goal - which can be either solving a problem or realizing an opportunity.
Good strategy is usually simple and clear, ambitious but achievable, long-term and durable, leverages core strengths and mitigates risks. Good strategy also explicitly identifies what not to do.
|Elon Musk is a master of simple, ambitious and achievable strategies|
Strategy consists of four main components:
- Strategy collateral:
- A single slide version.
- An expanded deck or doc.
- An appendix that shows the work, analysis and research.
- Buy-in: Team and stakeholders understand, feel confident and excited about strategy
Steps to come up with strategy
0) Strategy brain trust
1) Set specific goals
For example, Quizlet's mission is to help anyone practice and master anything. We distilled the mission to a more specific goal of helping high school and college students ace their tests. We explicitly said we aren't trying to replace the textbook or teacher, because that's a competitive area and would require a B2B model.
2) Assess current situation and challenges
3) High level approach
|Example of MECE themes|
4) Coherent action
|Impact X Effort matrix|