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:
- Planning: as in deciding what to do (strategy) .
- Executing: as in DOING IT (tactics).
In business there are four possible combinations of these two activities:
- Bad execution of a good plan: leads to failure;
- Bad execution of a bad plan: leads to failure;
- Good execution of a bad plan: leads to failure;
- 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.
