ANALYSIS

Precision, then process

Strategy consists of a clear, realistic goal and a clear, realistic path to that goal. That is all. Anything else is not strategy. Dreams or vague objectives do not constitute strategy: ‘increase market share’, ‘make the world better’, ‘be the best’ may be inspirational or aspirational mottos, but they are not strategy. They do not specify a clear, realistic goal nor a clear, realistic path to that goal.

Effective strategy depends on one precondition — precision — and thereupon unfolds in five movements which constitute the essential direction of the strategic process.
The precondition of precision requires deciding the scope and purpose of the strategy. Is it to increase market share? If so by how much, when, in which markets, through what means? Does it apply to a specific service or product of the enterprise, or a given geographic market or market segment? Is it primarily driven by customer needs, competitive pressure, technological change? Or is it ‘grand strategy’, comprising all the strategic elements germane to the organisation over the long term? For a nation, a company or any other form of societal organisation, the first imperative of strategy is to debate and define in precise terms what kind of strategy is being contemplated, what it is meant to achieve, what it is for.