Luck is Not A Strategy!

Websters describes the word simply as a careful plan or method. There are other definitions which include the word stratagem, skill in ruses or trickery, which I think to be ironic. The definition of strategy that I like, alludes to the science and art of military command exercised to meet the enemy in combat under advantageous conditions. Why does this ring home for me? It touches on a few things that I’ll build on shortly:

1. Strategy and science are connected. A strategy can be approached or developed with a logical, methodical, repeatable process.
2. Strategy is as much an art as it is a science. Understanding the nuances of circumstance, emotions, and context plays a huge role in achieving advantageous circumstances.

How does the development of strategy relate to science?

Two parts to the definition of science relate to strategy. One of the definitions says it is “a system or method reconciling practical ends with scientific laws”. Developing a strategy must reconcile with the laws that govern the real world. In other words, you can’t develop a strategy that is based on fiction or false assumptions. A strategy will likely fail to meet its objective of providing an advantage if it’s based purely on conjecture.

The second definition states, “knowledge or a system of knowledge covering general truths or the operation of general laws especially obtained and tested through scientific method”. The ideas employed to produce a strategy should come from general truths or general laws that have been obtained through the scientific method.

A strategy should be based on facts that are governed by the principles of general truths tested via the scientific method. It just really brings home that your ideas need to based on facts that have been tested rigorously.

How is strategy an art?

With respect to strategy being an art, we refer to the definition of art being a “skill acquired by experience, study, or observation”. To develop a strategy, one would require either experience, study, or observation. They are not mutually exclusive. You can use whichever is available but you have to employ at least one of them.

What does strategy have to do with business?

We start businesses with the intention of making a profit. In order to do that, we need to trade some type of value where our cost to provide that value is lower than the revenue provided by selling it. Therein lies the need for a plan (strategy)!

We can have good plans that will have a higher likelihood of delivering that ultimate goal of a good business model or we have bad plans that eventually lead to failure.

What’s the difference between a good and bad strategy?

A good plan is one that is grounded in the principles described in our definition of a strategy. As a marketing professional, we define a good strategy as one that has some of the following characteristics: a strong view of the competitive landscape, clear understanding of the ideal customer profile, and an outline of all potential risks. It’s the big picture planning you do before discussing the tactics needed to execute on the plan.

Bad strategies typically fall into the “if you build it, they will come” trap. They focus more on how to execute tactics without considering the bigger picture. The other expression that comes to mind is “can’t see the forest for the trees”. If you look at things one at a time (tactics), you might not realize that a branch of separate trees go together to make a forest.

Often times, a strategy is bad because it has not clearly met some of the definitions we have outlined above. For example, the strategy can be grounded on assumptions that just aren’t true. Facts that have been employed to create a strategy haven’t really been considered general truths as defined by one that has been through a scientific method. Lastly, the person(s) who created the plan was not qualified in the sense that they don’t have prior knowledge, experience, or training with respect to the issue.

Can you really be successful without a strategy?

Humbly speaking, a busted clock is right twice a day. It’s not impossible but let’s just say the odds are stacked against you. The goal in business is usually to be successful at your endeavor. The employment of a well thought out strategy is highly recommended if one’s goal is to be successful.