In his book Winning, Jack Welsh describes strategy brilliantly:
“What is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets.”
This makes it so simple and makes a few other things obvious:
- It isn’t a strategy if you don’t have the resources to accomplish it – it’s a goal (or maybe you’re just dreaming)
- There will always be an opportunity cost to a strategy
- You will always use your resources/time/money – strategy is just being deliberate about it
And raises a few questions:
- Do you have a strategy, or are you just reactive?
- If you analyse how you allocate your resources, does it sync with your strategy?
- Is your strategy actually working (ie achieving your goals)?
[...] your strategy working? In my post ‘What is strategy?‘, I finished with the question, ‘Is your strategy actually [...]
“Resource allocation has to be tied to strategy but isn’t strategy in and of itself.”
@Roland. The point isn’t that resource allocation is strategy, but that a strategy that can’t be resourced isn’t a viable strategy.