I’ve done lots and lots of reading, and discussion with people at all levels of several organizations, on this topic.  In fact, I’m now declaring myself an expert on the subject.

The concept of strategy is vital in aligning people in any organization on a direction for the future.  Indeed, I think the best definition of the term (for the business world, anyway) I’ve come across in my studies is from the highest-ranking business leader I asked about it.  He said it’s an exercise in envisioning multiple possible future states for the organization, choosing the one you want, and then laying out a road map to get there.

He also made the point that strategy is about action.  He told the following story:  Five frogs are sitting on a log.  Once decides to jump off.  How many frogs are left?  The answer is five, because deciding to do something doesn’t get you anything.  He said he’d personally seen some seemingly brilliant corporate strategies that never did anyone a bit of good, because nobody ever made them actually happen.

I think the most disheartening finding in my study of strategy is how many people just don’t get it.  Most people seem to think strategy is about slogans.  Indeed, another high-ranking leader I’ve interacted with recently got into high dudgeon because the people in his organization didn’t get his three-word “strategy” and asked for both more direction and empowerment, which this leader saw as mutually exclusive.

They aren’t.  A good strategy gets into the high-level details — again, laying out the road map mentioned above — but leaves the real work of execution (operational planning and tactics) to the lower-ranking leaders and “ground troops.”  (The military parlance is appropriate, since the whole concept of strategy is from the military — it means, essentially, “the work of generals.”)

You know what I haven’t found?  A good book on corporate strategy.  Anyone??