Choose Competitive Strategy You Can Execute

For busy executives

  • Strategy ≠ Slogans. A business needs to pick a distinct position which involves specific trade-offs because it cannot cater to all possible markets. Harvard Business Review
  • Portfolio must match the pose. Invest money into the few strategic bets that align with your position and use a growth-share matrix to decide whether to harvest or exit the rest of your portfolio. Boston Consulting Group
  • Execution lives in decision rights and information flows, not in org charts. Fix how decisions get made and how facts move. Harvard Business Review
  • Capabilities are the engine. Fit for Growth enables you to fund a small system of differentiating capabilities. PwC
  • Cadence beats chaos. Develop a weekly–monthly–quarterly rhythm that brings decisions into visible schedules and financial plans and performance targets. McKinsey & Company

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Why this matters now

Markets are jittery. Talent is stretched. Technology keeps shifting the goalposts. The focus should be on specific goals rather than attempting to solve everything at once. Your organization requires a strategy that it can execute by selecting a clear choice which can be backed by resources and governed to achieve implementation without excessive challenges. The foundation for developing a strategy involves defining how your company will differ from competitors alongside the deliberate choices you will avoid making. The fundamental nature of strategy involves an uncomfortable process. Harvard Business Review

Step 1 — Choose: Position with real trade-offs

Choose one domain to dominate completely while controlling all aspects of it.

According to Porter strategy functions as a distinct market position backed by a set of related activities. The sting in the tail? You must accept trade-offs. The attempt to combine low-cost operations with premium quality results in the mushy middle which makes your business vulnerable to competition. Harvard Business Review

Leaders find the Value Disciplines model more practical than generic strategies because it includes operational excellence and product leadership and customer intimacy as separate disciplines. The approach requires different funding levels as well as measurement criteria and behavioral requirements. Choose one main strategy as your headline while keeping the other options separate. Harvard Business Review

Teaching moment: Use a whiteboard to complete these three sentences without using slides or technical terms:

  1. We win by… (state your discipline or position)
  2. Therefore we will always… (3 behaviors you’ll reward)
  3. Therefore we will never… (3 temptations you’ll reject)

Your leadership team must be able to explain these statements in basic terms or else you have no option but to have wishes rather than real choices.

Step 2 — Align: Put your money where your mouth is

Strategy without resource allocation is just a press release.

You should evaluate your offers through the BCG Growth-Share Matrix to determine the future allocation of capital and talent and attention for the next quarter instead of planning for the next decade. The growth strategy identifies Stars for capital infusion while Cash Cows maintain operational excellence through question Mark experiments and Dog businesses get eliminated unless they support larger system effects. This framework should help organizations stop providing financial support to non-core operations that do not fit their strategy. Boston Consulting Group

Now perform a budgeting process similar to that of adults through “Fit for Growth.” You need to eliminate funding for non-essential capabilities which do not support your competitive advantages while redirecting these funds to the vital differentiators. The process requires targeted funding of core winning capabilities rather than uniform budget cuts. PwC

To achieve the best results allocate 70% to core fit (today’s edge), 20% to adjacencies that enhance the system, 10% to bold bets that could redefine the edge. Make the mathematical breakdown of your choices visible within the company walls so all employees can understand the consequences of your decisions.

Step 3 — Execute: Fix decision rights and the operating cadence

Most execution challenges stem from unclear decision processes. Who decides? With what information? How fast? The study conducted by Harvard Business Review demonstrates that two decisive factors for execution success are defined decision authority and effective information distribution. Structure matters, but these two matter more. Harvard Business Review

A leadership operating rhythm should be established to run the clock weekly while businesses conduct monthly reviews for learning and adjusting and quarterly strategy resets for fresh decision-making. According to McKinsey the same drum keeps beating to show that leaders who implement annual and monthly cadences reduce the strategy–performance gap. McKinsey & Company

Light ceremonial processes include one-page documentation and five KPIs that support your position and a single essential goal for each team during the quarter. That’s it.

Step 4 — Build the few capabilities that create your edge

Your ability to execute a strategy depends entirely on capabilities rather than meaningless slogans. According to Strategy& a capabilities-driven approach requires building a compact interconnected system of processes technology skills and governance that allows you to perform operations your competitors cannot or will not do. The system requires absolute funding through the Fit for Growth lens. PwC

MIT Sloan’s execution work provides a valuable modification to strategy implementation through concrete guidelines that connect to vision and focus on crucial vulnerabilities to direct choices at every organizational level. Think guardrails, not scripts. MIT Sloan Management Review

Example capability systems

  • Operational excellence play: demand forecasting → S&OP → supplier collaboration → plant/field scheduling → last-mile reliability.
  • Product leadership play: discovery sprints → design-to-value → rapid prototyping → launch factories → post-launch telemetry.
  • Customer intimacy play: account pods → data-driven pricing → lifecycle marketing → customer success monetization.

Choose one system and make it functional by connecting it to roles and metrics for performance.

Two compact case studies

Case A — Mid-market B2B SaaS (“Pick a lane”):

The company attempted a dual approach of product leadership and enterprise consultancy. Sales cycles ballooned; roadmap whiplashed. The new CEO decided to adopt product leadership while maintaining a strict ICP that focused on mid-market clients with usage-based pricing. A portfolio review eliminated 18% of unproductive features because of low user adoption. The decision authority regarding pricing lies with PM but Sales needs finance approval to exceed a 5% discount threshold. Weekly operations cadence pairs with monthly business evaluation meetings. NRR increased by 9 points and win rate improved by 6 points while time-to-value decreased by 30% after six months. (Mechanics aligned to HBR execution levers and McKinsey cadence guidance.) Harvard Business Review, McKinsey & Company

Case B — Regional contractor, GCC (“Capabilities, not slogans”):

Leadership declared “quality and cost leadership.” Impossible combo. The company selected customer intimacy as its commercial maintenance approach. BCG lens: harvest retrofit “Dogs,” double-down on service “Stars.” The company developed a capability framework through quick dispatch services together with first-time-fix diagnostic tools and contract analytics which received funding from cuts in low-yield advertising and bespoke retrofits. The 9-month period resulted in a 55% decrease of call-backs alongside a 11% increase of contract renewals and reduced margin volatility. (Moves echo BCG/Strategy& playbooks.) Boston Consulting Group, PwC

Your 30–60–90 execution starter plan

Days 0–30: Make the choice

Days 31–60: Move the money

  • Apply Fit for Growth: identify 10% of cost to reallocate to your capability system. PwC
  • Decision rights need to be redesigned for the five strategic decisions that determine the fate of your business including pricing and roadmap and capital allocation and service levels and hiring. Harvard Business Review
  • Define KPIs that match your position (e.g., cost per unit, release cadence, NRR, first-time-fix).

Days 61–90: Make it stick

  • Launch 3 capability workstreams with named owners and quarterly outcomes. PwC
  • Run the first monthly business review; make one big trade-off public. McKinsey & Company

The organization should reward the execution of a behavior which demonstrates the new rules (culture = repeated behaviors you pay for).

Common traps (and how to avoid them)

  • The “strategy zoo.” The combination of cost leadership with premium service alongside bleeding-edge innovation creates confusion among both teams and customers. Pick one. Harvard Business Review
  • PowerPoint strategy. Beautiful slides, zero resource shifts. Tie every priority to a budget line and a named owner next week. McKinsey & Company
  • Reorg obsession. Reorganizing boxes fails to deliver any results when decision rights and information flows remain unclear. Fix the flows first. Harvard Business Review
  • Cadence drift. Postponing monthly reviews because of being too busy will create future unexpected situations. Guard the rhythm. McKinsey & Company

External sources you can trust (further reading)

The classic strategic analysis of Porter addresses trade-offs. Harvard Business Review, Harvard Business School

The executional approach uses decision rights to control information flows according to Harvard Business Review.

  • Strategy cadence & operating model (McKinsey, 2024–2025). McKinsey & Company
  • Capabilities-driven strategy & Fit for Growth (Strategy&). PwC

The execution of strategy follows the model developed by MIT Sloan.

Final word

The companies which succeed do not merely exist with a strategy. The selection of strategic position requires money and talent realignment followed by precise decision making with a consistent execution rhythm. The complete game requires you to Choose. Align. Execute. The combination of courage in these three actions ensures both survival and compound growth.

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