Strategy Paper

Max McKeown opens the text by stating that strategy is about shaping the future. This is a well-stated definition of what strategy is and only a part of the total definition of what goes in to having a strong strategy for life or your business. Strategy is about having a vision first and then planning your future second. You want to be able to grow, while still remaining flexible and prepared for unexpected changes. Once you have an idea of what your strategy is you need to execute and repeat the cycle. It is a never-ending cycle and there will always be changes along the way.

You must think before you plan. If you start planning before you start thinking you will most likely end up with the right solution to the wrong problem or vice versa. Thinking is a practical way of organizing efforts and this can be done through lists and/or charts. There needs to be time set aside just to think or it will not be done because most people think it is a waste of time and that they should just be taking action instead of sitting back and thinking first. Once this step is complete you can then begin to plan logically and rationally. There is always more potential to grow, so if you never stop thinking you will discover those ways to expand your strategy, therefore, your business.

When planning for the future you need to be flexible and able to adapt to changing circumstances that will become unpredictable. Plans will always need to be adjusted, so it is superlative to be proactive to change. It is best to always have the ability to react to unforeseeable events because you cannot plan for everything, there will always be hurdles thrown in your way. The most effective strategies are adapted throughout the years. All decisions have uncertainty since the future is uncertain so you have to be willing to take risk for the company, which in return could benefit from higher returns.

Considering the big picture is an essential part of strategy. As a strategist, it is your job to shape the future from a bird's eye view. You must also be able to look forward, backwards, and outwards to see the big picture, but that is not the only way. You need to then simplify all of the various details collected and put together a big picture that helps your company understand what is happening and in return what needs to be done to succeed. You will know that you understand how to adapt to the bigger picture, when an event occurs and you know exactly what to do to change your strategy around that event so that you can resist the impact of the event on your company.

To create a successful strategy, you want to find a competitive advantage that will allow you to make more profit, and expand your company. There are three important generic strategies when it comes to having an advantage over other companies; and they are cost leadership, differentiation, and focus. It can be a powerful tool to be able to create simulations that