The single most important asset any organization has is a great strategy.

The legacy of good or bad strategy defines the success of any chief executive officer.

A powerful strategy generates 30 times greater return than a poor strategy. Strategy is the single most important thing that the CEO and his management team will be judged by - now and into the future. If you judge the performance of Amazon to that of General Electric, no clearer example can be found to prove our point. However, the formulation of strategy is changing.

Traditionally, strategy definition had been framed in terms market share, market segment growth, product segmentation and such. These are all outcomes.

With the advent of massive amounts of information through the internet, asset or competency-based strategies are frequently known and copied or negated before they even exist long enough to succeed.

The new requirement is to determine what constraint the company must own and control. Instead of thinking about competitive advantage, the focus on competitor disadvantage. The rise of Amazon is proof of this concept. Jeff Bezos became the world’s wealthiest individual by focusing on only one core capability that no competitor can match. Extraordinary customer experience. Your company should be asking itself:

What constraint should we create and continue to own in the long term.

Cost reduction is not one of them. Constant re-organization is not that either. Setting stretch goals is not.

To determine which constraint your company should own, the following steps apply:

  • Identify, understand the large business systems in your competitive space.

  • Determine which system can or will provide the greatest value to your customer base.

  • Develop a strategy for owning the constraining system or capability in the long term.

  • Execute and constantly realign priorities, projects and resources to reinforce the company’s control of the asset.

AKZEON works with Fortune 100 and other winning companies to develop, deploy and monetize this core asset. Management is frequently too close to the action and too many embedded thought about what drives success to be able to do an incisive, insightful and valuable analysis. We do that well.

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