Chaos is a recurring condition of civilization. Whether caused by an outside force or the enemy within, chaos can put people and organizations into response mode and, worse, lead to disorientation within the organization. The good news is that strategy is born of chaos.
Carl von Clausewitz (pictured), Michael Porter, Richard Rumelt, Margaret Heffernan, Jay Barney, Jack Trout, Al Ries, and Peter Drucker — among others — have addressed the corners of chaos through their examinations of strategy, from the military battlefield to academia to business. In their areas of emphasis, they have formed theses that have shaped the first principles of strategy — the fundamental truths that should be at the base of every strategic planning exercise, whatever the organization.
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- Define a clear purpose: an expression of why the organization exists, preferably in three words or less, that enables all stakeholders to refer back to it in moments of question and even doubt.
- Open up to reality: an invitation to accuracy in depicting the landscape, in all its negative and positive aspects.
- Pursue differentiation: a call to be clear about what the organization offers to the marketplace — which requires an objective view of all the players and their strengths and exposes the sources of competitive advantage.
- Allocate resources shrewdly: clarity about the abundance of highest-value opportunities — to drive the deployment of resources, which even if they are not, should be considered scarce.
- Establish boundaries along the limitless technology horizon: targeted selection and activation of emerging technology, enabling the organization to stay in control of its own fate.
- Align heads, hearts, and tools: fearless assurance that change is constant and external chaos is probable, which helps to stem internal chaos while connecting to the organization’s values through everything from internal communiques to external branding.
- Honor decisiveness and reward execution: vivid acknowledgment of successful efforts and meaningful failures in enacting the organization’s vision, to exemplify the importance of taking and managing risks.
- Position constantly: with the strategic plan as the abiding point of reference, a regular cadence of coordinated communication, formal and informal, makes it easy for all stakeholders to understand and endorse the organization’s direction.
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The plan should capture the classic elements — purpose, vision, values, priorities, and objectives — yet today, it should incorporate the projects of the organization’s functional areas. This gives employees the opportunity to connect their work to the strategic trajectory, and it gives managers and leaders the ability to direct teams in a strategic context. Organizations that employ this approach to strategic planning include the following:
- Dell. Project Maverick modernizes IT systems, consolidating thousands of apps and servers, with daily tasks supporting the larger AI-driven strategy.
- Exxon Mobil. The 2030 growth plan relies on simplifying processes and modernizing IT, connecting daily operational projects to long-term earnings goals.
- Cleveland Clinic. Daily management systems (hoshin kanri) align lab operations and problem-solving with strategic objectives.
- The family-owned window company’s structured daily huddles connect shop-floor activities directly to strategic targets.
The immediate outcome of integrating the first principles of strategy with project management is cohesion. The potential to overcome chaos becomes exponentially doable when strategy is enacted in the daily life of the organization. As Rishad Tobaccowala has advised, transformation happens in the gap between idea and reality. Strategy is the vehicle for closing the gap and navigating the chaos — for making transformations.
Contributed to Branding Strategy Insider by Mary Trigiani, Advising at the intersection of strategy, narrative, and transformation.
At The Blake Project, we help clients worldwide, in all stages of development, define and articulate what makes them competitive and valuable at pivotal moments of change. Please email us to learn how we can help you compete differently.
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