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Most people don’t think more than one or two moves ahead. Those people are amateurs and flame out quickly in business. Effective strategy is about making a move and being prepared to launch another series of moves based on how the market or your competition reacts. You must think beyond your first strike to execute an effective strategy. When you start to get really good, you anticipate how others will react and can deploy a series of moves that are nearly impossible to counteract.

The math of success…

Results = (Hard Work*Time)^Strategy

Working hard is important, but working on the right thing is more important. A great strategy can deliver exponential results.

Of course, the best strategy is worth nothing if you never get to work. Zero to the millionth power is still zero.

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Our success is a combination of four things: first is right strategy and good execution. The second is innovative products and third is efficiency of our delivery. And finally the diversified global leadership team which understands the needs of different geographies. On top of that, in the last four years we have had a strategy of ‘protect and attack’. We protect our strength in our core geography and business, that is, China business and global enterprise business. And we attack with new markets with new products — like emerging markets.

Having conflicting goals, dedicating resources to unconnected targets, and accommodating incompatible interests are the luxuries of the rich and powerful, but they make for bad strategy. Despite this, most organizations will not create focused strategies. Instead, they will generate laundry lists of desirable outcomes and, at the same time, ignore the need for genuine competence in coordinating and focusing their resources. Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does.

Nelson’s challenge was that he was outnumbered. His strategy was to risk his lead ships in order to break the coherence of his enemy’s fleet. With coherence lost, he judged, the more experienced English captains would come out on top in the ensuing melee. Good strategy almost always looks this simple and obvious and does not take a thick deck of PowerPoint slides to explain. It does not pop out of some "strategic management" tool, matrix, chart, triangle, or fill-in-the-blanks scheme. Instead, a talented leader identifi es the one or two critical issues in the situation—the pivot points that can multiply the effectiveness of effort—and then focuses and concentrates action and resources on them.

The principles of strategy are written down here in terms of single combat, but you must think broadly so that you attain an understanding for ten-thousand-a-side battles. Strategy is different from other things in that if you mistake the Way even a little you will become bewildered and fall into bad ways.

The important thing in strategy is to suppress the enemy's useful actions but allow his useless actions. However, doing this alone is defensive. First, you must act according to the Way, suppressing the enemy's techniques, foiling his plans and thence command him

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When researching strategies, emphasize patterns over stories. One person succeeding means nothing. 100 people succeeding is a signal.

When explaining strategies, emphasize stories over patterns. People forget numbers and charts. Everyone remembers a great story.

The outstanding people realised that the job involved more than just writing a good strategic plan. It was also important that top management should understand the plan and be prepared to adopt it. Consequently, the best strategists made sure that executives were involved in decisions at an early stage. The less outstanding people didn’t see this, and it had been overlooked by the experts. But, as soon as we showed them our findings, they could see that it made sense.

KEYS TO WARFARE The world is full of people looking for a secret formula for success and power. They do not want to think on their own; they just want a recipe to follow. They are attracted to the idea of strategy for that very reason. In their minds strategy is a series of steps to be followed toward a goal. They want these steps spelled out for them by an expert or a guru. Believing in the power of imitation, they want to know exactly what some great person has done before. Their maneuvers in life are as mechanical as their thinking. To separate yourself from such a crowd, you need to get rid of a common misconception: the essence of strategy is not to carry out a brilliant plan that proceeds in steps; it is to put yourself in situations where you have more options than the enemy does. Instead of grasping at Option A as the single right answer, true strategy is positioning yourself to be able to do A, B, or C depending on the circumstances. That is strategic depth of thinking, as opposed to formulaic thinking.

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