Strategy is a compass, not a map.
It sets direction amid uncertainty.

Execution follows the terrain.

Effective strategy helps companies outperform competitors, substitutes, and alternatives. It differentiates your from your competitors. Effective strategies guide choices of what to do and what not to do, but not specifically what, where, and when to achieve a specific objective.

Strategy is a Compass, Not a Map

What Does Your Leadership Team Think?

You may have crafted your current strategy or inherited it from past leadership. Does what you call your strategy have all the required elements? Discuss the following questions with your leadership team. Where do you agree or not? Are you aligned? Do you agree on your strengths and opportunities for improvement?

What is strategy?

Strategy is a set of choices. It defines where to compete and how to win, based on what matters most to your company.

It is not a plan. Strategy sets direction by guiding choices of what to do and not to do. Planning sets steps. You need both, but strategy comes first.

It is about focus. A good strategy says no to distractions and aligns people and resources on what matters. Actions are obvious by either aligning with a strategy or not.

It works under uncertainty. Strategy deals with change, risk, and limited control.

What's the difference between strategy and planning?

Strategy is about choices. It defines where to play and how to win. Strategy sets direction by choosing what matters most and what to ignore.

Planning is about steps. It lays out how to execute a chosen direction—timelines, resources, and tasks to get things done.

Strategy handles uncertainty. It deals with unknowns like markets, competition, and change. It’s about creating an advantage when outcomes aren’t guaranteed.

Planning assumes certainty. It works best with known goals and stable environments. It’s about coordination, not direction. A "strategy" with milestones, KPIs, budgets, or timelines isn't a strategy.

You need both. Strategy without planning stalls. Planning without strategy wastes time and money. Strategy always comes first.

What factors are most often overlooked in forming strategy?

Ground truth. Leaders skipping deep diagnostics. You need to know where you are and who you are.

Tough choices. Many avoid choosing where to play and how to win - and not. Strategy needs a clear and communicable framework.

Execution model. A great strategy fails without understanding possible structure, partners, and delivery systems.

Tracking and discipline. Strategy drifts without clear metrics and feedback loops to confirm effectiveness.

Outside forces. Too often, teams overlook emerging shifts in technology, policy, or markets.

What cognitive biases should we address in forming strategy?

Groupthink. Teams avoid conflict and rush to agreement. A good strategy needs pushback.

Status quo bias. Leaders stick with what worked before, even when the world has changed.

Confirmation bias. Strategy relies too much on selected input that supports current thinking.

Anchoring. Initial data like budgets and forecasts can lock teams into flawed assumptions.

Sunk cost fallacy. Past investments distort future choices. Strategy must ignore sunk costs.

Overconfidence. Leaders assume their forecasts are right. Strategy must stay humble.

Recency bias. Last year’s conditions feel normal, even when trends are shifting.

Team dysfunction. Fear of conflict, unclear goals, or lack of trust weakens strategy work.

How can validation increase strategy effectiveness?

Confirms fit. Validation checks if the strategy fits your context, market, and mission.

Exposes blind spots. It reveals flawed assumptions or missing pieces before they cost you.

Tests execution. Validation shows if your model can actually deliver results.

Builds alignment. Early feedback helps leaders and teams commit before rollout.

Reduces risk. You make smarter bets when you test before you launch.

How do you ensure stakeholder buy-in to strategy?

Engage early. People support what they help shape.

Use plain language. Avoid jargon. Make the strategy simple and clear. 

Connect to purpose. Show how the strategy advances mission, values, or goals. 

Show the plan. Share how the strategy will be executed and tracked. 

Invite challenges. Let stakeholders ask hard questions before rollout. 

What makes a strategy resilient?

Grounded in truth. It starts with a clear view of current reality, including strengths, gaps, and context.

Clear on purpose. A strategy rooted in mission and values can flex without losing direction.

Validated early. It is tested before launch to catch weak assumptions and missing elements.

Connected to execution. The business model supports the strategy with the right partners, systems, and structure.

Built to adapt. It anticipates shifts in technology, talent, policy, or markets.

Simple but strong. Clear choices and focused actions are easier to align and more durable under pressure.

Stress-tested regularly. You do not know if it holds up until you test it under new conditions.

Tracked in real time. Clear metrics and feedback loops allow for fast course correction.

How do we know if our strategy is working?

You’re seeing results. The right customers, revenue, or impact are improving.

You’re making choices. New decisions are consistent with the strategy’s direction.

You’re aligned. Teams know the strategy and act on it.

You’re adjusting. You respond to new threats or shifts without drifting.

You’re tracking progress. You have clear metrics and review them often.

How do we know if our execution is blocking a good strategy?

Is structure aligned? If teams or systems don’t support the strategy, it stalls.

Are resources adequate? If budget, staff, or tools are missing, execution will fail.

Is ownership clear? If no one’s accountable, nothing moves.

Is strategy understood? If teams can’t explain it, they can’t act on it. 

Is progress visible? If results and milestones aren’t tracked, momentum dies.

Note: Failed execution often results from a strategy that failed to fully grasp the capability of the company to implement the economic model, deploy capbilities or put systems in place.

Why do most strategies fail?

They aren’t real strategies. Many are vague goals or long wish lists. They don’t provide clear choices about what to do or not to do.

They are poorly crafted. Many use the wrong framework, aren't based on current data, are built without the right people, are not validated, and are cascaded poorly to stakeholders.

They ignore the customer. Too many strategies focus inward (on products, org charts, or internal goals) not on what customers truly value.

They copy others. Leaders chase what competitors are doing, instead of crafting a unique path based on their own strengths and context.

They lack follow-through. Even good strategies fail if leaders don’t align resources, people, and actions behind them. Execution breaks without clarity.

They don’t adapt. Strategies get locked in. But markets, technology, and policies change fast. If the strategy can’t flex, it fails.

    Even strong execution can't fix a strategy built on a weak foundation.

    What if our strategy needs to change?

    Watch the signals. Market, technology, or policy shifts often start small. Monitor the landscape constantly.

    Test assumptions. Recheck what you believed to be true about customers, costs, and risks.

    Adjust quickly. Update your strategy, business model, and plan while staying anchored to your mission.

    Communicate clearly. Explain what is changing and why, so teams stay aligned and confident.

    Build it in. Resilient strategies are designed to flex as new information emerges.

    Involve key voices. Do not change course alone. Get input from inside and outside the organization.

    Protect the core. Change tactics if needed, but keep your values and purpose steady.

    What's involved in the strategy foundation process?

    Step 1: Ground truth. Diagnose where you are, what’s changing, and what matters.

    Step 2: Strategic choices. Decide where to play and how to win.

    Step 3: Execution model. Build a structure and business model that delivers.

    Step 4: Measurement. Define how you’ll track success and adapt.

    Typical timeline: 4–8 weeks. Faster with strong preparation, slower if alignment is weak or data are missing.

    Note: These foundations make an effective strategy possible by answering the four key questions of Who Are We?, Where Are We Going?, How Do We Get There?, and How Will We Know?

    How do the Strategy Red Team and Strategy Stress Test differ?

    Strategy Red Test

    • Checks completeness. Is the strategy well-formed, coherent, and aligned?
    • Focuses inward. Reviews your current choices, structure, and execution plan.
    • Tests assumptions. Looks for gaps, inconsistencies, or unclear logic.
    • Validates fit. Confirms whether the strategy matches your mission, context, and capabilities.

    Strategy Stress Test

    • Checks resilience. Can your strategy hold up under change or uncertainty?
    • Focuses outward. Probes how shifts in technology, markets, policy, or talent could affect you.
    • Tests flexibility. Looks at whether your strategy can adapt without losing its core.
    • Reveals risks. Surfaces weak points that may not show up in a static review.