In a nutshell
A strategy only creates value when people understand it well enough to act on it. Keeping strategy simple, focused and memorable gives teams clarity on where they’re going, while leaving enough flexibility to adapt how they get there. The real test isn’t the strategy document, but whether it shapes everyday priorities, decisions and actions.
Strategy needs to be understood to work
A strategy can be insightful, ambitious and intellectually impressive. And still fail.
Why? Because a strategy only creates value when people understand it well enough to act on it.
Simpler strategies have a great chance of success. Here’s my reasoning.
1. People need to be clear on the destination
Strategy is a bit like driving a car. If you cannot clearly explain where you are going, why you are going there and what will be required to get there, you are unlikely to arrive.
Every organisation is made up of people with different roles, experiences, skills and motivations. A strategy needs to unite these people around a common goal.
If employees cannot understand where the business is heading and, more importantly, translate that direction into their own priorities and decisions, the strategy is failing.
2. A strategy needs room to adapt
The destination may remain consistent, but the route will often change. An unpassable road doesn’t remove the importance of the destination, just the way to reach it.
We operate in an increasingly dynamic environment. AI is reshaping industries and ways of working. Geopolitical events can disrupt markets and supply chains. Customer expectations, regulation and technology continue to evolve.
A strategy that attempts to prescribe every action in advance will quickly become outdated. Overengineered strategies are often fragile. They depend on too many assumptions remaining true and leave little room for people to respond when circumstances change.
A stronger strategy is clear about the outcomes the organisation wants to achieve, the choices it has made and the principles that should guide decisions. It then gives the teams enough flexibility to determine the best way forward.
3. A good strategy should be succinct, engaging and durable
A strategy should inspire action, not create confusion. The clearer and more memorable it is, the more likely people are to understand it, adopt it and continue using it as conditions change.
Creating that level of simplicity takes courage. Leaders must resist the temptation to include every possibility, caveat, and qualification.
Those details may be important, but they often belong in the supporting analysis, not in the strategy itself.
Keep the strategy clear. Keep it focused. Keep it tight.
The real test of a strategy is not the quality of the document. It is whether the strategy influences what people do. Does it shape daily conversations? Does it help teams choose between competing priorities? Does it guide decisions when leaders are not in the room?
A strategy becomes valuable when it creates clarity, alignment and action.
Questions to ask yourself
- Can you explain the central tenets of your strategy in a few sentences?
- Can your team? Is it concise enough to be remembered?
- Is it clear where the organisation is going and why?
- Does it help your teams to make decisions? Do you see it being used/referenced?