The Emergent Strategy

Separating Fact from Fiction

The world of business strategy is filled with buzzwords, trendy theories, and conflicting advice. As a result, it can be difficult for even the most seasoned executives to determine what strategy truly looks like in practice.

Two persistent misconceptions about strategy are that it must be innovative and built from scratch. Both of these ideas can be harmful to companies that embrace them, leading to failed execution, lack of commitment, and misguided efforts.

The Misconception of Innovation

One common belief is that a strategy must be new, innovative, or substantially different from the status quo in order to be effective. This notion stems from the idea that a strategy is only worth the effort and resources invested if it deviates significantly from what has come before.

However, this approach often leads to strategies that are too far removed from the company's current operations and established strengths. As a result, execution becomes difficult, and the strategy fails to gain traction and commitment from employees.

The Misconception of Starting from Scratch

Another common belief is that the best strategy is built from a blank slate, without being limited by the company's current activities or processes. This idea is rooted in the belief that starting from scratch allows for greater innovation and out-of-the-box thinking.

However, starting from scratch can lead to a disconnect between the strategy and the company's current operations. Additionally, it can result in the reinvention of things that were already in place, wasting time and resources.

The Reality of Emergent Strategy

In reality, strategy development is an emergent process. Over time, a company develops a baseline strategy, whether consciously or not. This baseline strategy is largely continued, but with some adjustments for the future. Over time, new ideas are embraced, and outdated ideas are discarded, leading to a gradually changing strategy.

Some may argue that this incremental view of strategy development is outdated in today's rapidly changing business environment. It is true that some industries and companies may require a radical pivot, but these cases are the exception, not the norm. In most cases, 90% of what has brought a company to where it is should be carried forward and continued as part of its strategy.

Finding Your Company's Emergent Strategy

So, what does this mean for your company? Should you pursue a radical pivot, or adjust your course incrementally? The answer will depend on your specific industry and business situation. However, the key is to understand that your strategy is an emergent process, shaped by both your company's past and its potential future.

As you consider your company's strategy, take a step back and consider your baseline strategy. What has been successful in the past, and what can be improved? Then, look ahead to the future and determine what new ideas and opportunities may emerge. By balancing these two perspectives, you can develop a strategy that is both grounded in your company's strengths and capable of adapting to a rapidly changing world.

The emergent strategy is a powerful framework for developing a strategy that is both effective and sustainable. By embracing the idea of an evolving, adaptive strategy, you can separate fact from fiction and develop a strategy that truly meets the needs of your company.