Too often, sports fans get upset when their opponent wins by way of a fumble recovery or one good play that enables a close victory. They exhort, “they were lucky!’ Or, “it was just a lucky bounce.” But the real truth is that the opposing team was just well prepared. How many times are there balls up in the air for people to pounce on – only to see the ball fumbled out of play? How many times have people been faced with an opportunity, but aren’t prepared to walk through the door and take it? How many times have companies had a chance to gain a huge client, but aren’t prepared to deliver the right proposal in the allotted time? Just like the fumble recovery, preparation and strategy are much stronger determinants of wins than luck. Gord Hotchkiss nails this ideal directly in his post about strategy on MediaPost. The thing is, he still attributes the element of luck in relation to success when the real truth is that sound strategy allows companies to create the element of “luck” by acting quickly and decisively due to preparation.
The truth is, strategy has been prepared and looked at in the wrong way for quite a long time. They are often set in absolutes with no room for flexibility or agility. They are often created by people who are too close to the product or don’t have the time to take a step back and evaluate their place in the market appropriately. And, perhaps most importantly, they don’t place the intended audience at the core of their considerations.
Creating a strategy with an eye toward what the audience is looking for and allowing for flexibility provides a key foundation that enables all members of the team to fluidly evaluate what’s going on in the environment and make moves or decisions that are based on the strategic core. It also provides the insights for the correct questions to ask when trying to determine whether that bright shiny object is the right direction or a complete waste of resources.
Once a proper strategy has been set in place, the fun’s not over. The team has to be fully educated on the thoughts and ideology behind it so that they may act on it without hesitation. There needs to be a clear understanding how it fits within the company’s ideals and mission – for if it’s not clear, maybe you need to dig back into building the strategy. All of this leads into strong leadership that enables the team to best capitalize on opportunity.
Hotchkiss provides an extremely gratifying illustration of the ROI value in the following:
Let’s imagine that two companies, A & B, both launched this year with $10 million in sales. Over the next 20 years, both companies were subject to the same rhythms — positive and negative — of the marketplace. But, because of superior leadership and management, Company A was able to more effectively capitalize on opportunity, giving it a 14% advantage over Company B. In 2035, what would be the impact of that 14% edge? It’s not insignificant. Company B would have grown in sales to $21 million, with growth of just over 100%. But Company A would have sales of almost $290 million. It would be almost 14 times the size of Company B!
Smart strategy (and strong leadership) doesn’t dissolve the need for luck, but it does provide that preparation and foundation for the leveraging of whatever comes your way to turn a possible fumble into a win.