From Strategy to Success: Embracing Flexibility and the Central Big Idea

From Strategy to Success: Embracing Flexibility and the Central Big Idea

The Traditional Strategy Model: Point A to Point B

In traditional strategic thinking, the approach often involves starting at point A, representing your current state, and mapping out a plan to reach point B, your desired state five years down the line. This method typically includes setting Big Hairy Audacious Goals (BHAGs) and creating a detailed plan to achieve them. However, this model is fundamentally flawed.

Imagine you are planning an international holiday. Should you buy dollars now, given the currency's current low value, or wait until you are at the airport in six weeks? Opinions would vary widely, and betting your house on the outcome would be unthinkable due to the uncertainty involved. This scenario illustrates the inherent unpredictability of rigid planning.

The Chessboard of Strategy

Consider the game of chess: while the rules are fixed, the application of these rules varies significantly. At the start of play, there are 20 possible moves. After both players make their first move, 400 possible moves are available, after 3 moves 8,902, which escalates to about 70 million at round 10. The complexity and variability illustrate why rigid, long-term plans can be impractical.

The Reality Check: Unexpected Changes

In January 2020, few could have predicted the global lockdowns due to the COVID-19 pandemic. Businesses shifted from face-to-face interactions to hybrid models almost overnight. Pre-pandemic plans relying on in-person meetings became obsolete, emphasising the need for flexibility.

The Central Big Idea

Given the impracticality of planning a fixed five-year roadmap, what is the solution? Enter the philosophy of Prussian Military Strategist Carl von Clausewitz (1780-1831) and his work "On War". Clausewitz’s approach embraces realism, recognising the complex, uncertain nature of events and human behaviour. Strategy, therefore, evolves from a central big idea rather than a detailed action plan.

In modern American military terminology, this is known as the commander’s intent. The commander might state the goal of securing a strategic outpost, but the specific actions are left to those on the ground, who adapt to the realities of the moment.

Applying Military Strategy to Business

Strategic thinking often has military roots but can be adapted to business contexts. Jim Collins’ book, "Good to Great", introduces the Hedgehog Concept, which emphasises simplicity and clarity. The Hedgehog Concept focuses on the intersection of three circles: 1) what you are deeply passionate about, 2) what you can be the best in the world at, and 3) what drives your economic engine. Success results from consistent, well-executed decisions aligned with this concept over time.

Implementing Your Central Big Idea: Enhanced Client Experience

Suppose your central big idea is to enhance the client experience. Here’s how you can implement this:

1. Decide on Your Core Focus: Make client experience your business’s core focus.

2. Cultivate Passion: Ensure everyone in your business is passionate about delivering exceptional client experiences.

3. Strive for Excellence: Learn everything about your target market and their needs to become the best at delivering these experiences.

Processes to consider include:

• Client Onboarding: Smooth and welcoming introduction for new clients.

• Personalised Service: Tailoring interactions to individual client needs.

• Proactive Communication: Keeping clients informed and engaged.

• Client Education: Providing valuable insights and information.

Protect your central big idea through:

• Feedback Mechanisms: Continuously gather and act on client feedback.

• Quality Control: Maintain high standards in all client interactions.

• Data Security: Ensure client information is safe and secure.

Conclusion: Adaptability and Collaboration

While this framework focuses on business, it also applies to financial planning. Work collaboratively with your clients on a financial plan centered around a core idea, with both you and the client playing active roles in its implementation. Embrace flexibility and the central big idea to navigate the uncertainties of the future successfully.