Strategy

Strategy is one of those words which are often used and abused. It is easy to take its meaning for granted. Even among strategists, business leaders and academics there is no consensus as to what strategy is.

Since a key component of my area of expertise is strategy development, I shall attempt to articulate a simple definition.

A definition:

a Strategy is an integrated set of choices, organised in a coherent plan to achieve an objective towards desired change.

This definition connects several aspects of strategy: a framework for making decisions (set of choices); coordinated actions (plan); mission (objective); vision (desired change); coherence (integrated).

Another definition:

Strategy is a set of choices about the use of an organisation’s resources to maximise its chances to fulfil its purpose in a given environment.

Our preference for one or another definition may depend on context. How do strategies come about? Every word above implies one or more possible approaches to [[ Strategy formation ]].

• A strategy is a ‘pattern in a stream of decisions’ (Henry Mintzberg)
• A combination of ends (the goal) and how to get there (the means) (Michael Porter)
• Three steps: Diagnosis; Guiding Policy; Coherent Action plan (Richard Rumelt)
• The essence of strategy is choosing what not to do. (Michael Porter)

The most suitable approach to strategy formation will vary depending on the specifics of the situation, and that in turn may require us to revisit the definition. So I shall refrain from any definitive statements on what strategy is and how it’s done, and rather focus on use cases and approaches.