Operational effectiveness focuses on performing similar activities better than competitors through techniques like total quality management, benchmarking, and outsourcing. While necessary, operational effectiveness alone is not a strategy because competitors can quickly imitate these practices, resulting in zero-sum competition where all major players offer identical products and services. A strategy requires choosing unique activities to deliver unmatched value to customers. It defines a distinct position and requires trade-offs, focusing on fit rather than flexibility. Leaders must distinguish operational effectiveness, which demands constant change, from strategic decision-making that establishes a unique position with discipline and continuity.

1. What is
& is not
Strategy?
Executive Summary
Pieter Hoekstra

2. Contents
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy

3. Operational Effectiveness (OE) Is Not Strategy
• Send an email to pieter@begrip.be if you like to learn more about this topic.
From our website: http://www.begrip.be/strategic-behaviour
We see too often that organisations are stuck in the middle by their drive to grow or to
survive. Too many emails is an important modern signal. Strategy is about realizing
(understanding or Begrip) and Strategy also realizing (make it happen). You need to
train your people and explain what the difference is that you want to make, if you
want to create an unique value for your customer. You need to train your people to
see the difference between OE, Operational Effectiveness (like Total Quality
Management, Best Practices or outsourcing) and your SI, Strategy Implementation.
OE and SI are both important, but different. And if you understand the difference
between OE, Operational Effectiveness and SI, Strategy Implementation. Which
incident, issue, project, problem or misunderstanding is related to OE and which one
to SI? We learn people to act better by reducing fear, distraction and compromising
behaviour and give them tools to see the difference.

4. Operational Effectiveness
• OE: performing similar activities better than rivals
– TQM
– benchmarking
– outsourcing, etc.
• rapid diffusion of best practices/OE
– competitors can quickly imitate management techniques
– most generic solutions diffuse by support from consultants
– outsourcing makes activities more generic
} best practices
OE is all about:
Better, Faster,
Cheaper and Easier

5. Operational Effectiveness: Necessary but Not Sufficient
• 2 reasons why OE is insufficient
– it shifts the productivity frontier outward, raising the bar
for everyone (absolute in stead of relative improvement)
– due to imitation, strategies converge making competition
a race down identical paths that no one can win
• result
– major players serving all types of customers
– major players offering the same type of product
– static or declining prices
– pressures on costs compromising long term investment possibilities
} zero-sum competition
‘the competitors left standing are
those that outlasted others,
not companies with real advantage’
If you try to be
everything for
everybody you will
end up as nothing
for nobody.
So, make The
Choices and be
different.

6. II. Strategy Rests on Unique Activities
• competitive strategy is about being different
– deliberately choosing a different set of activities
– to deliver a unique mix of value
• the essence of strategy is
–
–
–
• this enhances
–
–
Strategy is about
realizing and
realizing how to
make value for
whom in a unique
way and … who
not.

7. The Role of Leadership
• strong leaders willing to make choices are essential
• the leader must
–
–
–
• one of the most important functions of strategy is:
–
–

8. Finally....
• managers must clearly distinguish OE from strategy
• OE agenda
– constant change
– flexibility
– relentless efforts to achieve best practice
• strategic agenda
– defining a unique position
– making clear trade-offs
– tightening fit
• strategy demands discipline and continuity;
its enemies are FEAR, distraction and compromise

9. Operational Effectiveness (OE) Is Not Strategy
• Send an email to pieter@begrip.be if you like to learn more about this topic.
From our website: http://www.begrip.be/strategic-behaviour
We see too often that organisations are stuck in the middle by their drive to grow or to
survive. Too many emails is an important modern signal. Strategy is about realizing
(understanding or Begrip) and Strategy also realizing (make it happen). You need to
train your people and explain what the difference is that you want to make, if you
want to create an unique value for your customer. You need to train your people to
see the difference between OE, Operational Effectiveness (like Total Quality
Management, Best Practices or outsourcing) and your SI, Strategy Implementation.
OE and SI are both important, but different. And if you understand the difference
between OE, Operational Effectiveness and SI, Strategy Implementation. Which
incident, issue, project, problem or misunderstanding is related to OE and which one
to SI? We learn people to act better by reducing fear, distraction and compromising
behaviour and give them tools to see the difference.