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  • May–June 2021
  • Article
  • Harvard Business Review

Eliminate Strategic Overload

By: Felix Oberholzer-Gee
  • Format:Print
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Abstract

As companies respond to intensifying competitive pressures and challenges, they ask more and more of their employees. But organizations often have very little to show for the efforts of their talented and engaged workers. By selecting fewer initiatives with greater impact, companies can make their strategies more powerful. A strategic initiative is worthwhile only if it does one or more of the following: • It creates value for customers by raising their willingness to pay. As your company finds ways to innovate or to improve existing products, the maximum price people will be willing to pay for the offering rises. • It creates value for employees by making work more attractive. Offering better jobs lowers the minimum compensation that you have to offer to attract talent to your business. • It creates value for suppliers by reducing their operating cost. As suppliers’ costs go down, the lowest price they would be willing to accept for their goods falls. As companies expand the total amount of value created for their customers, employees, and suppliers, they position themselves for enduring financial success.

Keywords

Strategic Initiatives; Value-based Strategy; Organizational Effectiveness; Strategy; Value Creation

Citation

Oberholzer-Gee, Felix. "Eliminate Strategic Overload." Harvard Business Review 99, no. 3 (May–June 2021): 88–97.
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About The Author

Felix Oberholzer-Gee

Strategy
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  • SimpliSafe—Safe From Disruption? By: David Collis, Felix Oberholzer-Gee and Terrence Shu
  • Walmart USA—Searching for Growth By: Felix Oberholzer-Gee and Maria P. Roche
  • Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance By: Felix Oberholzer-Gee
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