Strategic Foundations: Building Organization's Strategy Function

Have you ever flipped through a book on strategy only to feel like you've just finished a philosophy thesis? I hear you. The world of strategy can seem tangled in complex jargon and lofty concepts. But let's set the record straight: strategy isn't some abstract notion—it's the critical ingredient that translates good intentions into tangible wins in the real world.

As someone passionate about constructing effective strategy organizations, I've contemplated how to turn analysis and intention into strategy. After all, what's the use of a brilliant plan if it's more shelfware than software (or product or offering or market entry)?

Whether you're nodding along to Peter Drucker's wisdom about "strategy is choosing what not to do" or soaking in Michael Porter's mantra of "creating differentiation and sustainable value," the landscape of strategic definitions is vast, with countless books dedicated to unraveling the essence of "strategy." 

But the true power of strategy lies in its application – in the concrete actions and decisions that propel success.

This philosophy forms the core of a well-oiled strategy organization. It's about infusing strategic thinking into your company's DNA, ensuring that every action resonates with your overarching goals. While the word intention is overused, when actions are "intentional" - when they move from unthinking process to precision activation - strategy shows its extreme value.

So, how do we achieve this strategic integration?

It begins with selecting the appropriate strategic posture for your organization. Here are three distinct types to consider as you develop your strategy function:

Visionary Architects: Gazing into the Strategic Crystal Ball

Imagine a team scanning the horizon for emerging technologies, social trends, and geopolitical shifts. There are six, eight, 100 tools and firms that do this. Many do it "for you" versus teaching you to do it. I'd argue you are well served building this muscle in house. 

What separates those collecting the facts to those creating strategy is to see the "what" and the "why."         

As an example, plenty of firms could change "what" they manufacture. But if those firms don't have supply chains sources, developers with specific competencies or distribution advantages or ecosystem partners, that ability to change is worth little. If they miss a talent shortage or potential competitive lockout, they will pursue paths that spend money without return.  If they mis-size what to buy versus what to build in terms of competency, it's just intention, without activation.

The ability to see and evaluate multiple potential options what makes strategists into visionary architects. They're the futurists who paint a vivid picture of the organization's long-term trajectory, often decades ahead.

They're the ones posing the big questions:

·    How will artificial intelligence and robotics reshape our industry?

·    What large-scale societal trends are on the horizon?

·    How will customer needs and interactions evolve?

Consider Tesla. Long before electric vehicles and autonomous driving became mainstream, Tesla was already envisioning a future dominated by these technologies. By prioritizing innovation early on, Tesla positioned itself as a leader in the future of transportation.

This forward-looking approach is indispensable in dynamic environments where the desire to innovate reigns supreme. It empowers you to seize opportunities ahead of competitors and disrupt entire industries. (Note to those in the burgeoning field or confronting imminent disruption!) 

However, there's a caveat: while dreaming big is crucial, neglecting the present can lead to a slippery slope. That's why it's essential to construct a clear bridge between your visionary plans and near-term execution. The ability to do both is the difference between initial funding for this kind of work and long term capital investments to make things happen.

Tactical Orchestrators: Nurturing Plans for the Present

In stark contrast to the visionary architects, we have meticulous planners and tactical orchestrators. They specialize in crafting strategic roadmaps for the immediate future, often following a spring/fall planning cycle.

These individuals resemble the conductors of an orchestra. They take a team of talented resources, analyze near-term market trends, scrutinize competitors, and translate broad strategic statements into hamronious, actionable steps for the coming months or years. Consider the earliest adopters of generative AI into their businesses in last two years. While more success than failure is talked about, these tactical orchestrators were engaged and leading.

Take Amazon, for instance. Their unwavering focus on optimizing fulfillment centers, fine-tuning logistics networks, and tailoring product offerings for the holiday season demonstrates their mastery of short-term strategic planning. Doing that while taking weight out of packaging and continuiung to reinvent return loops, is exceptional. 

To deliver operational excellence and seize immediate opportunities requires orchestration and is turning toward intelligent augmentation.

It's ideal for stable and predictable environments where consistent performance is paramount. Take note!

However, when an organization relies too much on delivering operational efficiency, it can lead to strategic myopia – a tunnel vision that blinds the organization to long-term trends and transformative opportunities.

The Goldilocks Zone: Balancing Vision and Action

Here's where things become intriguing. I believe that the most effective strategy organizations reside in a sweet spot – the Goldilocks zone. 

They serve as bridge builders, seamlessly connecting long-term vision with short-term action. Their magic lies in translating complex strategic concepts into clear roadmaps that resonate with every member of the organization.

Imagine a company like Apple. With a vision of revolutionizing the technology landscape, Apple doesn't just dream big – it plans things to within an inch of their life and executes each step accordingly. From Steve Jobs's visionary leadership to Tim Cook's meticulous execution of product launches, Apple exemplifies the Goldilocks Zone approach.

This balanced strategy fosters agility, enabling organizations to capitalize on present opportunities while remaining prepared for future challenges. It's the optimal solution for most companies - where you’re pursuing innovation (especially digital innovation) and some with a deeper focus on levels of efficiency. 

The Right Strategic Path for You

While the Goldilocks Zone might seem like the ultimate goal, it may not fit every organization.         

Some thrive on pure visionary initiatives, focusing on long-term innovation without being bogged down by short-term execution. Others excel as tactical orchestrators, mastering immediate execution to drive consistent performance in stable environments.

It's okay to embrace your organization's unique strengths and preferences.

Whether exploring visionary horizons or honing tactical precision, success comes in various forms. What matters most is finding the best approach to your organization's goals and values.

So, while aiming for the Goldilocks Zone is commendable, recognize that different strategies work for various organizations.

 No organization can be all left — that innovation without effective commercialization. Or all right - that’s where relentless pursuit of efficiency becomes an obstacle to undertaking bigger changes. Each company is on the continuum somewhere: executing current plans while keeping an eye on emerging disruptions.        

The optimal approach depends on your context:

• Industry Dynamics: Is your industry evolving at speed or are you stable
• Competitive Landscape: Are you facing aggressive disruptors or operating in a more predictable environment?
• Risk Tolerance: How comfortable is your organization with uncertainty and long-term bets?
• Organizational Culture: Where does your company prioritize: innovation, calculated risks, stability, efficiency?

In essence, finding the right strategic posture isn't about adopting a predefined model – it's about making deliberate choices.

Building Your Strategic Function: Embrace the Nuances, Adapt to Change

From the initial exploration of strategy's complexities to the practical implementation of tailored approaches, the journey to strategic excellence is ongoing. Embrace the nuances, adapt to change, and let strategy become the guiding force that propels the organization forward into sustained success. 

Remember, the three postures outlined here are not all-encompassing solutions but rather guideposts. They offer a way to think about framing your strategy function. It's about incorporating strategy into the business so that it moves from PowerPoint presentations to actual business execution. 

By understanding these postures and their implications, you can better tailor your strategic approach to fit your organization's unique needs and challenges, ensuring that strategy becomes a living, breathing part of your company's DNA.

So, which strategic posture resonates most with your organization?

Share your thoughts, and let's keep the conversation about building effective strategy functions going.

PS: This is an opinion piece and may not reflect my employer’s official views.