What Success Really Looks Like

When Intended Strategy Meets Reality in Turbulent Times

By Rajshree Agarwal

SMITH BRAIN TRUST -- Strategy often starts as theory built in an ivory tower. Leaders assess their perceived strengths and weaknesses, match these with perceived environmental opportunities and threats, and then descend from above to attempt implementation. This is when intended strategy slams into reality in a turbulent world. Assumptions often prove false, conditions change, or visions fail to resonate. The terrain is almost always rough, and the path to success rarely unfolds in a straight line. 

Some leaders press forward stubbornly despite mounting evidence of trouble, while others bail too quickly on a winning formula. Strategic leaders do neither. They navigate the changing landscape with confidence, keeping the following five guidelines in mind. 

OWN YOUR ERA 

Some leaders tell themselves they live in special times of unprecedented complexity and ambiguity. They see the pace of change accelerating with globalization and new technology, and they suppose that somehow the old ideas of strategic leadership need an upgrade to version 2.0. 

This line of thinking is neither productive nor accurate. Consider the explorers from 500 years ago who sailed into unknown territories where maps did not yet exist. The speed of trade was measured in years and months, not minutes and microseconds. Yet, was the world any less complex or ambiguous for these pioneers? 

The need for strategic thinking remains constant in all eras. The fundamentals that guided success in the past still apply today. Rather than longing for the “good old days,” strategic leaders own their era, embracing the opportunities that lie within complexity and ambiguity. 

CALIBRATE YOUR HORIZONS 

Most successful companies are built to last. Their leaders make decisions today that will pay dividends in five, 10 or 25 years. Yet even a 100-year horizon consists of short-term, midrange and long-term investments. 

Strategic leaders understand that time is relative. For a startup scrambling to get its first product to market, the short-term horizon might be one week. For a software company, short-term might mean six months. For an oil and gas conglomerate or aerospace manufacturer, short-term might mean several years or even a couple of decades. 

Strategic leaders understand their industries and calibrate their horizons accordingly. 

KNOW YOUR NICHE 

Before making their move, strategic leaders look inward at their capabilities and identify the niches they can fill better than the competition. They do not try to do everything, or please everyone. 

The key is self-awareness and the discipline to say no to the wrong opportunities. Like baseball players who check their swings when pitches come outside the strike zone, strategic leaders wait for something they can hit and then drive the ball through a gap. 

Honda learned this lesson in the 1960s, when the Japanese conglomerate entered the U.S. market with visions of challenging Harley-Davidson in the upscale motorcycle space. When confronted with the reality that Americans did not want a foreign “me-too” brand, Honda choked up on its bat and rebounded in the underserved moped and scooter market. 

Eventually, the company built its strength to compete from below, leaving Harley-Davidson and other U.S brands on the fringes. Instead of always swinging for the fences, strategic leaders pick their spots and take what the defense gives. 

ACTIVELY CHART YOUR PATH 

Conventional wisdom distinguishes between an open or closed mind, but strategic leaders see both options as paths to failure. An open mind prevents commitment to a course of action, especially in the face of adversity. A closed mind prevents flexibility in the face of new evidence. 

Strategic leaders reject this false dichotomy, employing instead an active mind. This means they remain alert to themselves and their environment. They base decisions on evidence, and do not easily change course with every new opinion or fad. 

Rather than being humble or arrogant, they are confident. They defy their naysayers until the evidence proves otherwise. When it does, they move quickly to respond. 

BE THE DISRUPTION 

In the end, the best way to stay ahead of change in turbulent times is to be the disruptor that others must follow. Companies such as IBM and Google reshape or invent new industries, forcing everyone else to adapt. 

Setbacks always mark the path to success. Some observers call this luck or serendipity, but strategic leaders do not make excuses or see themselves as victims to external forces. They keep their focus on the long-term prize and make their own opportunities. 

They react when necessary, and they use strategy as a tool to make life happen. 

Rajshree Agarwal, PhD, is the Rudolph P. Lamone Chair and Professor in Strategy and Entrepreneurship at the University of Maryland’s Smith School of Business.