Harris, a senior director of a multi-billion dollar company, asked me: “What’s the next new thing in Strategy? Is it the Metaverse? If yes, how can we prepare for it?” I told him: “Don't get trapped in the quest for the next new thing."
Most of the time, the next new things are more distracting than helpful. Take, for example, the Machine Learning trend: torrents of data, reams of analysis, and expensive IT infrastructure, while immediately increasing costs, seldom translate to long-term competitive advantage.
Ultimately, Strategy is about achieving your goal, not about new things, new tech, or new tools. After all, there are always new kinds of stuff out there. Blindly chasing them will only lead to chaotic confusion.
If you want to achieve your goal, it is better to focus on the timeless guiding principles of strategy that we know are true and proven. By applying these proven principles, we know for sure that we will have a higher chance of success. (Read more about the guiding principles of strategy here)
So, how do you know if your strategy is focusing on the right things? Six simple tests (in my book, I called them the G.O.S.P.E.L. tests):
Is your goal clear? Do you know the measures of success for both the short- and long-term?
Have you analyzed all the options? Is your strategy based on sound analysis?
Is your strategy sharply focused on how to win? Will it give you a competitive advantage?
Have you translated your strategy into action plans? Is everything you do aligned with the strategy?
Is the drive to execute the strategy strong? Is everyone in your company committed to the strategy?
Are you looking out for results and changes? Is your strategy still valid? Is your strategy performing as expected?
These six questions are simple but profound. They force you to think hard, to make hard choices, and to be honest with yourself.
They aren't fancy. They aren't new. But they are timeless. And they help you to determine if the next new things are the right things for you. Sometimes they are. Most of the time, they are not.
So, next time you have a strategy discussion in your company, don't focus on the next new things. Instead, use these six simple tests to help you focus on the right things.
Continue to explore the secrets of Winning Strategy here.