Do you assume that your leadership team agrees on what “strategy” means?

BLog post 2One major obstacle leaders encounter when trying to develop a game changing strategy is that the leadership team cannot agree on what strategy actually is. Each executive has his or her own view or definition. This is not surprising. Even the strategy gurus that confused leaders turn to when seeking an answer cannot always agree!

Our definitions are simple. Strategy is whatand operations is how. Strategy determines what you want to become as a company, and operations determines how you get there. Strategy and operations require different processes of thinking and contain different concepts.

Some organisations are proficient at both strategy and operations. In other words, they have a clear strategy that is sound and well understood (what), and they are very competent operationally (how).  However, our experience has shown that few companies are highly proficient at both. Most firms are so involved in operational activity that they do not spend enough time thinking about the future of the business. If this is your company, then you can consider yourself “normal”, but you also need to be thinking about how you can you transform how your company operates by being proficient in both these areas.