What Does "Strategy" Really Mean?
To truly understand business strategy, we must go back—way back. The concept of strategy isn’t new. In fact, it dates back over 2,400 years to Sun Tzu’s The Art of War, a classic text that shaped strategic thinking long before the birth of Christ. Strategy, as we know it, has ancient roots, yet its relevance in today’s business world is as crucial as ever.
When I first explored professional services strategy, I came across an insightful definition from Harvard Business School’s David Maister, who put it this way:
“Stripped of its grandiose terminology, strategy development is a straightforward idea. It involves the development of a set of actions that will make the firm's services more valuable to its clients than competing firms.”
This simple yet powerful definition highlights two key aspects of strategy that every professional services firm should understand.
Action-Orientated Strategy
First, note the emphasis on actions. Strategy isn't just about creating a plan (which we all often do)—it’s about taking steps toward execution of our strategy. Too often, businesses get stuck in the planning phase, overthinking and delaying real progress. James Clear, renowned for his work on habits, sums it up perfectly:
“Life rewards actions, not intelligence.”
In other words, no matter how brilliant your plan is, it's action that drives results. As my favourite "philosopher,” Mike Tyson, once put it:
“ Everyone has a plan until they step into the ring and get punched in the face!”
Even if your first step isn't perfect, it’s a step forward. Mistakes offer opportunities to learn and refine your approach. The iterative process of doing is where strategy truly evolves and becomes more effective.
Creating Value: Your Competitive Edge
The second key takeaway from Maister’s definition is the idea of providing more value to clients than your competitors. But what does value really mean in this context?
Value isn't just about price; it’s about the overall impact your services have on a client’s business or life. It’s how clients perceive the worth of what you offer beyond the monetary amount. How is your firm improving their experience, solving their problems, or helping them achieve their goals?
Ask Yourself These Questions:
What is your current strategy?
What concrete actions are you taking to implement it?
How often do you evaluate the value your services bring to your clients?
These questions are essential for keeping your strategy aligned with your clients' evolving needs and ensuring your firm stays ahead of the competition.
Moving Forward with Your Strategy
Ultimately, the effectiveness of your strategy comes down to two crucial elements: the actions you take and the value you deliver to your clients. By focusing on these, you can ensure your firm stays competitive and continues to evolve in an environment of constant change.
Building a solid strategy is an ongoing process that requires reflection, action, and continuous improvement. Embrace this process, and you'll position your firm for long-term success.
