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Unlearning Strategy Ebook
Unlearning Strategy Ebook
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Unlearning Strategy
The 10 Most Persistent Strategy Myths to Forget Immediately
Unlearning Strategy
The 10 Most Persistent Strategy Myths to Forget Immediately
Jeroen Kraaijenbrink
/mɪθ/
(Cambridge Dictionary)
Copyright 2020 Jeroen Kraaijenbrink
Introduction ..................................................................................... 1
Myth #1: Strategy Is About Warfare ............................................. 5
Myth #2: Strategy Equals Planning................................................ 9
Myth #3: Strategy Starts With Goals ........................................... 15
Myth #4: Strategy Should Be High-Level ................................... 19
Myth #5: Strategy Should Be Simple ........................................... 23
Myth #6: Strategy Resides at the Top.......................................... 27
Myth #7: Strategy Can Be Made by Consultants ........................ 33
Myth #8: Strategy Derives From Data ........................................ 39
Myth #9: Strategy Requires Offsites ............................................ 43
Myth #10: Strategy Should Be Formulated ................................. 47
And Now? ...................................................................................... 51
About the Author .......................................................................... 57
More from Jeroen Kraaijenbrink.................................................. 59
Introduction
1 https://www.forbes.com/sites/jeroenkraaijenbrink/
4 Unlearning Strategy
The first three myths concern the essence of what strategy is all
about. As I will argue in Chapters 1, 2 and 3, strategy is not about
war, not about planning and foresight, and not about achieving
pre-defined goals and purposes. The next two myths concern the
key characteristics that strategy is supposed to have: that it is high-
level and generic, and that it is simple and easy. In Chapters 4 and
5, I will explain why it is a mistake to believe this. Myths #6
through #9 concern who should make strategy and how it is
made. Discussing these four myths in Chapters 6 through 9, will
show that strategy needs to be made in a different way than we
usually assume. Finally, as argued in Chapter 10, Myth #10
challenges the whole idea of strategy as a noun, the idea that
organizations need a definable strategy that can be formulated and
executed.
Along with the demystification of these ten myths, the ten
chapters also sketch an alternative view to strategy that, I hope
and think, helps break the dogmatic insistence on the traditional
strategy approach as we know it, helps address the severe
criticisms, and helps improve strategy’s success rate. I will end
with a brief concluding section, summarizing the key takeaways
and how to move forwards—using the metaphor of jazz...
Happy unlearning!
Jeroen Kraaijenbrink
June 2020
1
Myth #1: Strategy Is About Warfare
The Myth
Many books on strategy start with informing you about the origins
of the term strategy. As they will tell you, the word strategy is a
derivation and combination of the Greek words strategos (general),
strategia (office of a general), stratos (army), and agein (to lead).
Accordingly, strategy is often defined as “the art of a general.”
6 Unlearning Strategy
Why it is Wrong
While strategy certainly has its role in warfare, and while there is a
lot of wisdom in military works about strategy which is applicable
in today’s organizations, the warfare connotation of the word
“strategy” is misleading for no less than five reasons.
and Rockefeller. The interesting thing is, that the term “strategy”
wasn’t even used in business before the 1960s and was
uncommon before the 1970s. Like the first strategy course at
Harvard Business School, the field was called “business policy” or
“business policy and planning.” Along those same lines, the first
academic strategy journal was (and still is) titled Long Range
Planning. The term strategy was imported much later, and the field
was not relabeled “strategy” and “strategic management” until
1979.
What Then?
If not warfare, what then is the core of strategy? Of course, there
are numerous possible answers to this question. And we only have
to look at the hundreds of definitions of strategy available to see
that there is nothing close to agreement about this. But, if we stay
as close as possible to the theme of warfare and the history of
strategy, Lawrence Freedman provides a good definition in his
comprehensive and masterful book Strategy: A History. He defines
strategy as “the art of creating power.” Power here doesn’t refer
so much to having power over others, it is power as potential, as
in the ability to do stuff and make that we can exert control over
our own lives rather than that others are doing it. I’d like to think
that this is what strategy is about.
2
Myth #2: Strategy Equals Planning
“In preparing for battle I have always found that plans are useless,
but planning is indispensable.”
― Dwight D. Eisenhower
“Take time to deliberate, but when the time for action comes,
stop thinking and go in.”
― Napoleon Bonaparte
The Myth
The widely shared assumption is that strategy should be generated
in the following way: You conduct a thorough analysis of your
organization and its environment, thereby paying particular
attention to the trends that are going on. Based on this analysis,
you make projections about what you expect is going to happen
10 Unlearning Strategy
Why it is Wrong
In a sense, strategy is of course about planning. As explained in
my previous article, it even used to be called “business planning”
or “long-range planning” in the past. And in whatever you do,
there is always some planning involved: you always think ahead—
consciously or unconsciously—about what your next step is going
to be. But beyond this very basic level of planning, the idea that
strategy is all about planning is a myth for a variety of reasons.
What Then?
There is a famous quote by Dwight D. Eisenhower, that “Plans
are nothing; planning is everything.” It suggests that plans are
useless because they will be outdated as soon as they are written
down—or before. The very act of planning, though, is useful
because it creates a common frame of reference so that, once
things change, everyone knows what to deviate from.
Creating this common frame of reference is one of the key
functions of strategy. So it is important. But this doesn’t imply
that it is planning that should provide this frame of reference. A
shared understanding of an organization’s strategic status quo can
serve this same purpose—and in a more effective way because it
doesn’t require speculation. Once we understand well what an
organization does today, we can point out quite specifically where
and how things should change toward the future.
This doesn’t require meticulous, long-term planning.
Wherever we look around us, we see more agile, adaptive
approaches emerging: in software development, in project
management, in innovation, in entrepreneurship, and so on. These
approaches distance themselves from the “waterfall” approach to
planning that is still present in strategy. Adopting elements from
Myth #2: Strategy Equals Planning 13
The Myth
There is a strong conviction that strategy has to start with
formulating clear goals. We can see this most obviously in
Chandler’s classical definition of strategy as “The determination
of the basic long-term goals and objectives of an enterprise, and
the adoption of courses of action and the allocation of resources
necessary for carrying out these goals.”
Along with this definition, the idea is that any strategy needs
to start with formulating an attractive, challenging, and clear
16 Unlearning Strategy
Why it is Wrong
Starting with goals—in whatever version referred to above—
sounds nice and intuitive. And, like with planning, at the
fundamental level, there is always some sort of goal or intention
driving our behaviors. But beyond this, it is far from evident that
goals ought to be strategy’s universal starting point. There are
several reasons why this idea does not really hold.
What Then?
None of the above means that goals are not important. They are
important, for without some sort of goal, there is no intentional
progress. The myth that I aim to break here though, is that goals
should be the all-encompassing universal starting point for
strategy. As the arguments above indicate, we can seriously
question this idea from a philosophical, instrumental, and
normative perspective.
But if not goals, what then? The starting point, I think, is
realizing that goals are as evolutionary as everything else. In his
book Reinventing Organizations, Frederic Laloux uses the concept of
“evolutionary purpose” to capture this idea. It means abstaining
from the urge to define and specify goals upfront, and rather, let
them emerge in and by the organization while moving forward.
Also, Freedman, in his treatise Strategy: A History that I already
referred to earlier, offers a useful insight. As he suggests, strategy
should be guided by a “reappraisal of original strategy” which is
“governed by the starting point, not the end point.” Along those
lines, he argues, strategy is about thinking about actions in
advance in the light of goals and capacities. So, goals are important,
but so are your current strategy and capabilities. And the ultimate
focus is on actions, not on intentions.
4
Myth #4: Strategy Should Be High-Level
“The helicopter is a fine way to travel, but it induces a view of the world that
only God and CEOs share on a regular basis.”
— Morley Safer
The Myth
Because strategy concerns an organization’s overarching
direction, and should encompass and guide what is going on in
the entire organization, the idea is that it should be formulated in
a rather general, abstract, and high-level form. The best strategy
takes a helicopter view and looks at the whole picture rather than
at details.
20 Unlearning Strategy
Why it is Wrong
At first sight, it seems to make sense to argue that strategy, by
definition, should be high-level. In the end, the core of strategy
that makes it different from everything else in the organization is
that it is overarching and integrative. And this means it cannot be
about all the nitty-gritty details. But there are several reasons why
this way of thinking does not really hold.
What Then?
The alternative to high-level abstract strategy is not a meticulously
described organization-wide strategy. We know already for a long
time that trying to formulate all-encompassing detailed strategic
plans does not work. They are too rigid, too complex, and
outdated before they are created.
But strategy can be very concrete at the level of an
organization’s offerings—its product-market combinations. At
that level, you can identify quite precisely what your products and
services are, and what value they create for whom. And you can
also specify which resources and competencies you need for that,
what your supply chain needs to look like, how much and how
you will charge for the value you offer, and so on and so forth.
So, the key to demystifying strategy and making it concrete
enough to be actionable, is to formulate it primarily at the level of
offerings and business units rather than at the level of entire
corporations.
5
Myth #5: Strategy Should Be Simple
The Myth
To be effective, strategy needs to be simple, so the idea goes. After
all, if we can’t formulate a strategy in one or a few sentences, it is
too complex for people to understand and remember. Therefore,
any strategy needs to be crisp enough to express in one or a few
strong and inspirational statements.
24 Unlearning Strategy
Why it is Wrong
Like with the previous myths, it all sounds intuitive and sensible.
We like to make things simple, and we certainly like it when people
tell us that simplification is what is needed. This is comforting.
And of course, simplification is always needed. There is no way
round it. But, the extreme level at which simplicity is promoted in
strategy is a problem. The following five reasons explain why.
What Then?
Simplification is useful. We always need to simplify things to make
sense of them. But oversimplification is a problem. To quote
Albert Einstein, “Everything should be made as simple as
possible, but not simpler.” What we do in strategy, though, is
simplify things far beyond what is possible.
The conclusion that follows from breaking this myth is that
we need to start appreciating complexity again in strategy. We
need to allow strategies to be complex, and adopt and develop
more advanced strategy tools and methods that help understand
and deal with the complexity of our organizations and the world
around them.
Paraphrasing a key element of cybernetics and systems theory,
we need “requisite complexity.” This means that to be able to deal
with the complexity around us, we need to embrace a sufficient
level of complexity in our organizations, tools, and way of
thinking. Only then are we able to understand what is going on
and formulate effective responses. In other words, we need
complexity to beat complexity.
6
Myth #6: Strategy Resides at the Top
“No one can whistle a symphony. It takes a whole orchestra to play it.”
— Halford E. Luccock
The Myth
As referred to in Myth #1, “Strategy Is About Warfare,” the term
strategy means something like “the art of the general.” This
suggests that strategy is the stuff that concerns the people highest
in rank. Accordingly, many definitions of strategy suggest that
strategy is “that which top management does” (Steiner in Strategic
Planning). A study by Nag, Hambrick and Chen in Strategic
28 Unlearning Strategy
Why it is Wrong
Like with many myths, there is some truth in this idea. It makes
sense that people are overseeing the organization, and that some
people have a greater say than others in where the organization is
heading. And it makes sense that this is top management. But the
idea that strategy is something exclusively or even primarily for
the top is wrong for a variety of reasons.
What Then?
Of course, many organizations already realize that strategy is not
just a top management activity. They involve middle management,
consult others in the organization, and follow a more participative
approach than the traditional trickle-down approach. Yet, the
primary assumption is still that it is top management that is
principally responsible for strategy generation.
But what if we completely abandon this idea and assume that
strategy is everyone’s job? This may sound rather bizarre at first
sight, but I think the current alternative is even more bizarre. The
current idea that top management is responsible for strategy
suggests that the more important a topic is (assuming we find
strategy very important…), the fewer people that should decide
about it (just the board). In that light, I’d say that making strategy
part of everyone’s job is far less bizarre.
Explaining how to engage people throughout the organization
goes beyond the scope of this short chapter. But to see how this
could work, it is useful to have a look at quality management and
its various varieties: Total Quality Management, Continuous
Improvement, Lean, Six Sigma, etc. One of the core elements of
Myth #6: Strategy Resides at the Top 31
The Myth
Strategy is one of those areas where consultancies flourish.
Influential companies such as McKinsey, Bain & Company, and
the Boston Consulting Group, thrive to a large extent by helping
their clients through analyzing, assessing, designing, formulating,
34 Unlearning Strategy
Why it is Wrong
There is no doubt that it is useful to occasionally invite an external
party to have a look at what you and your organization are doing.
They can bring a fresh perspective, point you at your implicit
assumptions, guide you through the strategy process, and even
bring in some new ideas. Being a strategy consultant myself, I
would be a hypocrite if I argued differently. However, this doesn’t
mean strategy can or should be outsourced to consultants at the
levels at which it is currently done, or that consultants should be
the ones coming up with the strategy. There are at least five
reasons why this idea is a myth.
do. This means that consultants could help you ask the relevant
questions and guide you through the process—and occasionally
they may even have good ideas—but they don’t have the answers.
What Then?
As already referred to above, there certainly is a role for
consultancies in facilitating and helping companies generate and
execute strategy. That is my own job too, and I would like to think
that what I do is relevant. But what the above means, is that
Myth #7: Strategy Can Be Made by Consultants 37
The Myth
The widely spread traditional strategy approach, as we know it,
relies strongly on gathering and analyzing data. With the help of
frameworks like Porter’s Five Forces Framework, and the
PESTEL analysis, we are supposed to gather extensive data about
the opportunities and threats in our market. Along these same
40 Unlearning Strategy
Why it is Wrong
Of course, data is important. Without data, any strategy would be
pure fantasy. Fun perhaps, but not necessarily useful for real
organizations. However, there are at least five reasons why data is
less important to strategy than is often assumed.
What Then?
Ignoring relevant data is foolish. But over-depending on data is
foolish too—even if the data is relevant. As the five reasons above
show, strategy is not just a cold, deductive, rational, analytical
process. It involves people, their imagination and creativity, their
norms and values, and their ability and willingness to execute. This
makes data far less important than is often assumed.
The approach to strategy that follows from this, is a
participative one in which there is a substantial role for people’s
subjective, intuitive, and creative contributions as well as their
thoughts about what is right and wrong. Collaborative
sensemaking plays a crucial role in such an approach. It means
that people together create an understanding of what the current
strategy is, what it might be, what it should be, and what it will be.
Can you picture an approach like that?
9
Myth #9: Strategy Requires Offsites
The Myth
There has emerged a rather standardized ritual for making strategy
that is used throughout the world. When I describe it to executive
MBA students, I often get instant and close to unanimous
recognition, including a half-smile that tells me they are a bit
embarrassed that that is, indeed, how their company also does
strategy.
44 Unlearning Strategy
It goes like this. Once every year, the key leaders of the
company go to a nice hotel or resort for a day or so. During that
day, they do some serious work in the morning. Facilitated by a
consultant, they do one or more brown paper sessions organized
around a SWOT analysis or—for a couple of years—a “business
model canvas.” And in the afternoon, or the next day if it is a
multi-day offsite, they do a team-building exercise to bond and
have fun together. Afterward, everyone goes home full of energy
and optimism. The next day, everyone goes back to work and
forgets about the offsite until next year’s offsite comes around.
Of course, there are numerous variations, and of course this
description is rather a caricature—but in many cases, it is not far
off from how things actually go. So, the myth is that strategy can,
or even should, be made during occasional offsites of a day or
two. It should be offsite at a nice place away from the office
because that takes people out of the ordinary and thereby
stimulates creativity and focus.
Why it is Wrong
The idea that strategy can be effectively made in this way is
attractive. It makes strategy-making a fun and contained activity
that doesn’t interfere with business as usual. But there are five
reasons why this is a myth.
What Then?
There is nothing against having meetings with groups of people
to talk about strategy. In whatever way strategy is made, that way
of working has its value, and practically it is the way strategy-
making will take shape anyway. After all, strategy is a people
process that requires people to interact, and when a group of
people interacts at the same time, we call this a meeting. But, as
the five reasons above indicate, that doesn’t mean this should
happen during isolated and occasional offsites.
From these reasons, as well as the reasons for the eight
previous myths above, the alternative approach to strategy slowly
comes to the surface. In this alternative approach, strategy is a
continuous process involving people throughout the organization.
Rather than being something special, strategy is part of everyone’s
day-day-to activities.
10
Myth #10: Strategy Should Be Formulated
The Myth
There is a widely accepted idea that, to function properly, every
organization needs a strategy that is written down and
communicated to its employees and the outside world. This
strategy should be based on thorough analysis, and formulated
comprehensively and carefully so that it is clear what the
organization’s strategy is going to be for the next couple of years.
48 Unlearning Strategy
More often than not, this means writing the strategy down in
a thick, impressive report with lots of figures and numbers. This
report contains all the evidence behind the strategy, and should
convince readers that this is the right strategy.
Next to that, it is recommended to formulate a concise
mission and vision statement as well, so that there is an easy-to-
remember phrase that everyone in the organization can refer to.
Why it is Wrong
Of course, writing down a strategy has its purpose. It can help
sharpen a strategy, inspire people, give direction to what the
organization does, and create coherence and a shared
understanding. But, the idea that strategy should always be
formulated—or should be formulated at all—is wrong for a
variety of reasons.
What Then?
The approach to strategy that follows from breaking this 10th
myth, can be summarized by paraphrasing Dwight D. Eisenhower
once more. As already referred to in Myth #2, “Strategy Equals
Planning.” Eisenhower was in favor of planning but less so of
plans. Accordingly, the conclusion that follows from the above
can be paraphrased as follows: “Strategies are nothing; strategizing
is everything.”
When we take this statement seriously, this means abandoning
the whole noun “strategy” altogether. Rather than focusing on the
formulation and execution of “a” strategy, organizations then
should engage in a continuous strategizing process focused on
looking forwards, by solving misalignments and frictions in
today’s factual strategy and building upon its strengths—on the
strategy the organization actually executes rather than an idealized
formulated one.
This implies a strategy process that aims at generating strategic
insights, decisions and actions, that facilitates prioritizing them so
that the three to five most important ones are selected, and that is
putting most weight on executing them—and then moves on to
generating the next set of key insights, decisions and actions.
And now?
“Simply pushing harder within the old boundaries will not do.”
— Karl E. Weick
Conclusion
I started this little book with the statement that strategy is a mess
that is heavily criticized both from within and outside. I proceeded
by arguing that this mess is largely the result of clinging strongly
to a set of misbeliefs—myths—about the nature of strategy.
These myths are largely based on early 20th century ideas about
organizations and strategy. Throughout the past ten chapters, I
have reviewed these myths and argued why they are largely wrong.
Here they are once more:
Opera Jazz
Preparation Long and planned Short and unplanned
Atmosphere Grand and serious Down-to-earth and fun
Leadership Top-down by the Rotating, by the soloist
conductor at the moment
Team Large orchestra and Small combo
choir
Desired Predictable and Surprising and edgy
outcome perfect
Structure Sheet music and Basic chords and
provided by conductor rhythms
Degree of Once agreed, hardly A lot, as long as
freedom any communicated
Music Beforehand, during In the moment, on stage
originates practice
Way of Playing a particular Improvising based
performing piece on agreed-upon schemes
Obviously, both opera and jazz are stereotyped here. But, as the
table shows, there are vast differences. And those differences
really make a difference in how to play, how to develop as a
musician, and what makes both types of music work.
Strategy, as we know it from the myths, is clearly more of the
opera type. One glance at the table shows this. Traditional strategy
is all about thorough preparation and planning, mostly top-down,
organization-wide, and oriented toward achieving a particular pre-
defined goal.
If we read the textbooks and follow what is recommended, it
seems as if this is the only way we could think of strategy. But as
research shows, the traditional opera-like approach seems not
particularly effective. It brings many problems, and involves very
high failure rates of up to 90%.
And Now? 55
Books:
Strategy Consulting. Cambridge University Press, Cambridge (2020)
Websites:
www.jeroenkraaijenbrink.com
www.betterasstrategy.com
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