Strategy and CEO - October 08

I am a CEO of a smallish retail chain. I keep being challenged by my FD regarding my poor grasp of strategy. He is probably right but the success of this business has been built on running every store well and profitably. Should I change my focus?

It’s a funny old world. Everything you read from the city page in the Sun to Harvard Business Review seems to stress “strategy”. And what an esoteric subject it can be. From what you say, I’d back your judgment right now. I’ve met far too many leaders that seem to prefer the theory (and safety) of strategy to the reality of execution. As I read the economy, keeping your business thriving long enough to enjoy the luxury of a strategy could be a sound decision. You are the leader of your people and I bet they will understand the need to do the small stuff right every day. Be confident that you are 80% right – and that, trust me, is a good place to be.

So although strategy is long term and no doubt crucial I would suggest that maybe short term goals and fully effective execution is what makes a company tick at the moment. If the whole cake is now smaller, then you need to be constantly increasing your market share. Running retail is all about executional excellence. Don’t faff about the three year plan, there will be time for that later, concentrate on the here and now, today and tomorrow. Great execution day in day out will build market share. Concentrate on getting the stuff to the store on time at the time that the customer wants it. You don’t need the FD or any management consultant to do the core job- get it right first and every time and the customer will decide for you. Don’t waste too much time on the strategy-it just might not be worth having.

But senior management does need to look ahead too. You have to be able to fly the plane and clean the windows at the same time. Not easy this management lark is it? But do not be rattled by an ambitious FD. Is she criticising your preparation for board meeting, is her analysis of the management figures one that you share or is there a punch up every time you meet? Does she want your job, are you committed to your position as CEO or are you too busy wanting to be the Ops Director? Think about it.

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