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Strategy Paradox

Why does effective strategy often surprise people and look obvious only in hindsight?

Lesson 1 of the Wondering course Good Strategy Bad Strategy

The Strategy Paradox

Good strategy looks simple and obvious once it has worked.

Yet beforehand, it is rarely what people expect. Experts, rivals, and even insiders are often surprised by it.

That is the paradox. The best moves feel clear in hindsight but unexpected in the moment.

Why does the obvious surprise us?

Understanding why helps you spot real strategy and avoid simply following the crowd.

What People Expect Instead

Most people expect strategy to be about vision, inspiration, and elaborate plans.

Those things feel like strategy. They sound ambitious and fill long documents.

Real strategy is about solving problems through intelligent action. It focuses on specific actions rather than broad goals.

Expectation vs reality
  • Expected strategy
  • Real strategy

This gap between expectation and reality is one reason good strategy surprises people.

Strategy Solves Problems

At its core, strategy is problem-solving.

Good strategy cuts through complexity and hype to identify what really matters. Then it answers that problem with focused, intelligent action.

From mess to strategy
  • Cut the hype: Set aside complexity and hype.
  • Find what matters: Identify the real problem in your way.
  • Choose actions: Pick specific actions that address that problem.
  • Act intelligently: Put focused effort behind those actions.

A goal says where you want to be. A strategy says what you will actually do about the obstacle in your way.

Ask yourself: what is the real problem here, and what specific action addresses it?

Apple in 1997: Radical Simplicity

When Steve Jobs returned to Apple in September 1997, the company was two months from bankruptcy.

Everyone expected elaborate turnaround plans. Instead, Jobs made brutally simple choices.

He cut all fifteen desktop models back to one. He cut all portable and handheld models back to one laptop.

He also got Microsoft to invest $150 million, using Bill Gates's concerns about antitrust issues. Simplifying, rather than innovating, saved Apple.

Apple's simple turnaround
  • Time from bankruptcy: Apple's position when Jobs returned in September 1997.
  • Desktop models before: 15
  • Desktop models after: Portables and handhelds also shrank to one laptop.
  • Microsoft investment: Secured by using Gates's antitrust concerns.

Desert Storm: The Left Hook

In Desert Storm, military experts expected a costly frontal assault on Iraqi forces in Kuwait.

General Schwarzkopf chose a "left hook" instead. It combined air strikes, deception, and a massive hidden flanking maneuver.

Expected frontal assault versus the left hook in Desert Storm

Notice how the expected attack runs straight into the front, while the left hook swings wide around the side where no one was looking.

Rather than charging straight at the expected front, forces swung around the side.

The surprising, focused plan led to a swift, decisive victory with minimal casualties.

The Power of Saying No

Good strategy often means saying "no" to opportunities that look attractive.

Every yes spreads your time, money, and attention thinner. Every hard no frees resources for what really matters.

Should we say yes?
  • Attractive opportunity
  • Serves what matters?: Does it address the real problem?
  • Commit resources
  • Say no: Free time, money, and attention.
  • Sharper focus

Jobs said no to fourteen desktop models. Schwarzkopf said no to the expected frontal assault.

That focus is what creates competitive advantage.

Spotting Real Strategy

Apple and Desert Storm share one pattern.

The crowd expected something big and conventional. The winning move was focused, specific, and surprising.

When you review a plan, check three things. Does it name the real problem, list specific actions, and say what you will not do?

Strategy check

If it only offers vision and broad goals, it is probably not strategy yet.

Check yourself

At its core, strategy is mainly about _____

  • solving problems through intelligent action
  • writing inspiring vision statements and goals

Answer: solving problems through intelligent action

Real strategy solves problems through intelligent action. Vision statements and goals can inspire, but they do not by themselves tell anyone how to overcome the challenge at hand.

Good strategy works in a chain: saying _____ to some options creates _____, and that focus creates competitive _____.

Answer: Good strategy works in a chain: saying no to some options creates focus, and that focus creates competitive advantage.

Hard choices about what not to do concentrate resources and attention. That focus is what lets an organization outperform rivals, as Apple did after cutting its product line in 1997.

In 1997, Apple was two months from bankruptcy. Which move by Steve Jobs best shows the power of saying no?

  • Cutting fifteen desktop models down to just one
  • Getting Microsoft to invest $150 million
  • Launching many new products to win back customers
  • Writing a bold new vision statement for the company

Answer: Cutting fifteen desktop models down to just one

Cutting fifteen desktop models to one was a hard choice about what not to do. It created focus. Securing Microsoft's investment was a clever move, but it was not about elimination. The other options describe the elaborate plans people expected instead.

Keep going

This is lesson 1 of 22 in Good Strategy Bad Strategy. Next up:

  1. Hidden Insight
  2. Diagnosis
  3. Guiding Policy
  4. Coherent Actions
  5. Fluff Recognition

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