Operating Principle

2–4 min read

Strategy Is the Deliberate Choice of What Not to Do

Strategy Is the Deliberate Choice of What Not to Do

Strategy Is the Deliberate Choice of What Not to Do

A strategy that requires no sacrifice isn’t a strategy—it’s a to-do list.

A strategy that requires no sacrifice isn’t a strategy—it’s a to-do list.

A strategy that requires no sacrifice isn’t a strategy—it’s a to-do list.

Advantage comes from trade-offs competitors cannot easily copy.

Advantage comes from trade-offs competitors cannot easily copy.

Advantage comes from trade-offs competitors cannot easily copy.

Porter argued strategy is trade-offs: choosing certain things and deliberately not others in a coherent whole. Firms that refuse sacrifice become stuck in the middle, differentiated at nothing and cheap at nothing.

Operating Question

What trade-off or assumption must be made explicit here?

What trade-off or assumption must be made explicit here?

What trade-off or assumption must be made explicit here?

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Why It Matters

Advantage comes from trade-offs competitors cannot easily copy.

Supporting Evidence

Michael Porter, “What Is Strategy?” and “Competitive Strategy”.

Research Notes

Treat as an operating heuristic and assess the applicable context, limits, and counterarguments.

Practical Actions

Name three things the company will not do; share them with leadership; reject requests that break coherence.