What strategy is not?

As a result of the economic and consumer trends triggered by the pandemic, companies are spending more time than ever to question and discuss what their strategy will be in this period of uncertainty. Its origin is the "Art of Generalship" in ancient Greece, and the word strategy, which has entered the business world from the military literature, has become one of the most conceptual words both in terms of its meaning and method of fiction. Therefore, it would be a better start for companies and departments to discuss whether their strategy statements are a strategy or not, before discussing the correctness of their strategies.

Let's do a study to increase the effectiveness of this part of the article; Let's write down your department's current strategy on a piece of paper. Keep the paper aside for now, we'll use it soon.

Because of the conceptuality of the word and the difficulty of its applicable definition, it would be more accurate to talk about “what it is not” before what the word strategy is to understand the word strategy;

1) Vision

“Being the most inspired/preferred brand by the 18-24 age group”

Most strategy statements consist of a vision statement similar to the one here, and only describe the position that companies or departments want to achieve in their hearts. As in this example, the sentence expressing where the brand wants to be in the consumer's mind in the long run does not contain any clues about how to get to that point.

2) Purpose or target

“Winning/increasing our share in the X segment”

A similar misconception applies to strategy statements that contain only short-term goals. Such so-called strategy statements, which include the desired position in the targeted product or service segment, mean nothing more than an annual sales/commercial target or slogan. Since it does not specify the areas and resources to be selected and therefore to be given up on the way to this goal, it pushes the commercial teams into chaos rather than reaching a conclusion.

3) Motivational statement

“We will work/focus harder than ever and reach our goal”

This sentence, familiar from sports competitions, does not mean anything more than a sentence that puts the responsibility of the job directly on the field teams. What is more interesting is that motivational sentences like this are thought of as if the opponents had no desire to win. Another mistake is to think that winning is more about hard work than a rational strategy. However, in Germany, one of the strongest economies, you cannot see most of the office lights on after 6 pm.

4) Data analysis

“We will optimize our investments on a channel/region basis”

“We will invest more in falling regions”

Another common mistake is to tie the strategy to the data analysis result. However, the creativity factor plays an important role in strategy as much as data or science. However, in this way, you can strike your opponent, stronger than you, by establishing a power superiority in an unexpected area. Since the data you have is probably even more of your strong competitor, your competitor can predict the resource allocation you will make based on data analysis only and can easily block your possible moves.

5) Multiple action list

“Our growth-oriented strategies are; ..."

Strategy presentations that start in this way are the biggest indication that a main strategy has not been established, and the listing of 4-5 action plans that do not talk to each other. It is a way of consciously, even unconsciously, concealing that the main strategy cannot be devised, by presenting a large number of actions as ideas resulting from intense brainstorming and working late.

6) Variable

“Our strategy for this year/period is...”

It is another mistake made especially by the marketing and sales departments, with the expectation of creating a new strategy every year or period. The different and creative perspective that is constantly expected from these departments within the company also applies to strategy construction with a similar frequency. This “new strategy” expectation, a new product, a new commercial tool, or organizational changes add extra fuel and cause the main strategy to be constantly renewed, thus constantly shifting resources and focus.

Although companies know by definition that the above 6 items are not strategies, the difficulty of constructing a strategy somehow pushes the constructors to use these items. Cool business words such as active, focus, development, efficiency, growth, plus English (fortify, grow, leveraging, transforming, focusing) are used to create an illusionary effect, thus concealing that the sentence is not a strategy. After the “successful” strategy presentation, when the strategy is downloaded to the teams, chaos begins. Since the "strategy", which is mostly descended as a statement of purpose, is not clear, the whole initiative is left to the initiative of the sub-teams who are more prone to producing tactics than strategy. As a result, invaluable resources and critical time of the company is wasted with independent short-term and volume-oriented actions rather than long-term plans. As a result of the goals that will not be realized in a short time, the need to revise the strategy arises. The “new strategy” cycle begins again.

Now look again at the strategy you just wrote down on the paper, is the sentence you wrote a strategy or a combination of one or more of the 6 items above?

The definition of strategy, which is "all of the ways and methods used to achieve a determined goal", actually constitutes the main reason for all these illusions and illusions. Because the definition is actually very conceptual and does not have the slightest clue about how to construct it.

So now let's focus on the constructable definition of the word;

There are three main factors to be victorious in the military or business world:

1) Having greater strength

2) Having technological superiority

3) Having a superior strategy if you are weaker than your opponent in these two factors.

Due to the definition of the third factor, only plans to correct or improve the weak area come from the beginning of the critical mistakes made during the strategy formulation phase. Since you are already smaller than your competitor in terms of strength (budget, brand power, team, etc.) or you are behind in terms of technology (infrastructure, digitalization, fleet innovation, etc.), you should show your "art of generalship" and set up a creative strategy. The time and resources you'll devote to healing weak areas will allow you to best get close to your strong opponent, not pass. Because most likely your strong competitor has more resources and stronger brands.

For example, your advertisements and campaigns aimed at increasing the image of a brand with a lower image will not be enough to change the perception in the mind of the consumer. Because your competitor with a strong brand did not come to this perception with only 1-2 advertisements or sales campaigns; came with a clear strategy and consistent long-term execution of positioning.

For this reason, the strategy should definitely be a plan that you will implement by focusing on the area where you are stronger than your opponent and you will use as leverage. “How can you better manage the opportunity or threat in the market by using your strengths than your competitor?” The answer to the question is the key sentence that will direct you to a more accurate strategy setup.