While the typical association or sports-organization executive oftentimes is called upon to develop or implement a strategic plan, few resources are typically allocated to help develop the chief executive as chief strategist. Rich Horwath, the president of the Strategic Thinking Institute and author of the new book “Strategy Espresso,” says there are three defining principles that strategic managers can apply to their organizations in order to outperform their competition:

1. Create Differentiation. According to Horwath, differentiation for competitive advantage has its roots in science and the Principle of Competitive Exclusion, which states that no two species can coexist if they make their living in an identical way. Horwath says that organizations are put at risk if they do the same things in the same way as their competition.

2. Focus Resources. Horwath writes that focus demands the discipline to allocate resources to specific areas and activities, rather than spreading them evenly across an organization. Strategy, says Horwath, is as much about what you choose not to do as it is about what you choose to do.

3. Design Systems. Horwath believes that great strategies involve a system of activities that tightly fit together and act as a shield to competitors. As an example, if a strategy involves only one activity, the chance that a competitor can successfully copy it is relatively high. Instead, Horwath suggests thoughtfully creating an interconnected web of complementary activities.

To learn more, buy Horwath’s book from the the Association News bookstore or visit www.strategyskills.com.

Tim Schneider
Schneider Publishing Company

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