What does it take to build or run a business? Any business?

We believe it is quite simple(*), and we have reduced it to two activities:

1. Planning: as in deciding what to do (strategy) .
2. Executing: as in DOING IT (tactics).

In business there are four possible combinations of these two activities:

1. Bad execution of a good plan: leads to failure;
2. Bad execution of a bad plan: leads to failure;
3. Good execution of a bad plan: leads to failure;
4. Good execution of a good plan: the only way that leads to success;

Flexibility has be build into the process, but flexibility doesn’t mean that the during execution (the tactical portion of the business), the plan (the strategy) can be double-guessed and brought into question. Especially in start-up mode, or R&D, there’s great value in feedback. Arguably there’s more value in incorporating the knowledge of what doesn’t work and why, than knowing what works, without the knowledge of why.

(*) Simple does not mean easy.