The Ideal Equation between Impact, Strategy, and Market
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I’d rather have some execution and no strategy. But also note that strategy has an exponential effect on your execution. So I’d rather have excellent strategy & just OK execution vs. excellent execution & just OK strategy. This is counterintuitive for many people
Shreyas Doshi
A brief thread on
Impact = (Execution ^ Strategy) × Market
for product people:
Let’s start with: Strategy = 0 (others non-zero)
You get: Impact ≈ Market
What it tells us: A very bad strategy won’t kill you. But if you don’t fix it, it will severely limit the impact of your execution over the long term.
Now let’s set: Execution = 0 (others non-zero)
You get: Impact ≈ 0
What it tells us: Abysmal execution almost always assures zero long-term impact, regardless of our strategy or market.
That is why I’d rather have some execution with no strategy, and not the other way around.
Finally: Market = 0 (others non-zero)
You get: Impact ≈ 0
What it tells us: Lack of a market (or at times, a rapidly shrinking market) also kills our future impact over the long term.
Last thing:
(for leaders who are very good at strategy)
When you’re just starting to build a team, it is usually a better idea to hire people such that your team will be excellent at execution, even if that comes at the expense of your team being somewhat weak on strategy.
Because it is easier to add strategic discipline to a team that’s excellent at executing than to add execution discipline later on.
How a new team executes sets its early culture a lot more than how (or if) it strategizes.
And that early culture is very hard to undo later.
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