Where Does the Energy of a Good Strategy Come From?

The key to an effective strategy lies in channeling limited energy into the points that can generate the most impact. Good resources should be used where they matter most.

So we must ask, where does this energy come from? Here are some common sources:

• leverage
• proximate objectives
• chain-link systems. Systems without weaknesses are extremely difficult to replicate, such as IKEA.
• design
• focus strategy, providing specific services for particular groups
• growth. The increase in team size should not be deliberate but rather a natural result of the company's product growth.
• advantage. Comparative advantage is domain-specific; a champion runner may not excel in high jumping.
• dynamics. Exploit a wave of exogenous change.
• inertia and entropy.