In this episode we examine the different levels of strategy and how it can sometimes be better to lose in the short-term to win in the long-term.
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- Is choosing your destination part of strategy? Or outside of it?
- Could defining “growth” be thought of strategically?
- e.g. stock price, number of quality employees, overall revenue
- Exploring the concept of how you can always go “one level up” in defining your desired future.
- Amazon: they’re goal isn’t necessarily to “make money” but to put the money back into the business. They want to put a mountain between them and their competitors.
- Companies who were valued highly by the market without actually making money or even having a plan to (e.g. MoviePass)
- The strategy isn’t responsible for whether or not you’re happy with where you end up. It simple asks, “What’s the most effective way to get where you said you wanted to go?”
- Zappos – not necessarily a massive player in the shoes industry, but they have a positive influence in the world. That was the goal they set out on. That was their definition of success.
- Strategy: Guiding principles to get you to your destination.
- The process of developing a strategy forces you to answer questions you may not have answered. It also shows you the range of possibilities available to you.
- Reasons people don’t value strategy:
- They don’t know why it’s helpful
- They don’t know that they can influence things
- They see value in not having a strategy
- They don’t “zoom out” enough, look up enough (think big picture). This is required to have a strategy that survives the things they bump into.
- Analogy: Brandon: telling my phone where to navigate, but there are two towns with that name. It develops a great strategy for getting me to the wrong place.
- Choosing the right destination is even more important than having the right strategy. Multiple strategies can get you to a given destination, but if the destination is the wrong one, it’s doesn’t matter.