A recent article by Pearl Zhu “Mirror, Mirror, What is Best Strategy” takes a quick look at some of the key writings on strategy, such as Sun Tzu’s “Art of War”, Michael Porter’s “Five Forces” and Peter Senge’s “The Fifth Discipline”.
The article provides a quick summary of various approaches and comments that:
All these great leaders: Rumelt, Paton, Sun Tzu, Clausewitz and Porter have one thing in common. They all understood that over-reliance on any particular approach to strategy is dangerous.
Pearl provides a useful common sense approach to developing strategy:
Three-Step Strategy Making:
1) Figuring out the nature of the business challenge
2) Designing a guiding policy that produces an advantage
3) Creating a set of coordinated actions to carry out that policy.
Strategy is about how we move the business forward and achieve our goals or objectives. A strategy is only useful if we clearly understand where we currently stand, where we need to get to and what stands in our way. Finally, we need to be able to break down that strategy into meaningful actions that move us towards our final goal.