Are you looking to master the strategic planning process? well, the trailer has you covered! Check out our 10 must-read strategy books to guide you in developing an impactful strategic plan for your business or company:
- strategy safari by henry mintzberg, joseph lampel & bruce ahlstrand
As the first book on our list, The Strategy Safari introduces readers to the concept of strategy. If you are a beginner in business strategy, this is the book for you. the strategic safari presents summaries of 10 different schools of thought on strategic planning:
You are reading: Best books on strategic planning
- design: establish a fit between internal capabilities and external possibilities
- planning: treat strategic planning as a formal process; assign an entire department to strategic planning
- positioning: achieve competitiveness from market positioning
- entrepreneur: strategic planning is the work of a visionary
- cognitive: base strategy on the functioning of the mind
- learning: learn from mistakes made in past strategies and correct them.
- power: base strategic planning on political negotiations, coalitions and self-advocacy cultural
- interest: letting the organization’s culture influence the strategic planning process.
- environmental: drawing inspiration from environmental factors (within the which the organization works) while developing a strategy</li
- configuration: believe in constant transformation through strategic planning
- the platform business: strategy in the age of digital competition, innovation, and power by michael a. Cusumano, Annabelle Gawer & david b. yoffie
Did you know that six of the world’s top 10 most valued companies are platform-based? The rapid growth and scalability offered by the platforms is unmatched in today’s market, and the organizations that offer these platforms are becoming some of the most successful businesses today.
The Business of Platforms: Strategy in the Age of Digital Competition features a trio of authors who provide valuable research-based insights into platform strategy and innovation. For managers and entrepreneurs who want to build a business platform and compete with traditional and digital competitors, this is a great read.
you will learn:
- factors that influence whether your business will stand the test of time
- how to create strategies that allow you to harness and tame the power of a platform
- how “businesses “mainstream” can join the fight
- how to avoid abusing the power of the platform
- competitive advantage by michael e. goalkeeper
Competitive Advantage is a classic business strategy book that teaches leaders how to build an advantageous position in the marketplace through a competitive strategy plan.
The book explains that providing additional value in terms of lower prices or better products allows the company to win customers. In this context, he shares the following 3 strategies that must be implemented to achieve success:
cost leadership strategy
A company that uses lower-cost resources can earn higher profit margins, even if the market cost of its product is equal to that of its competitors. Companies can also lower their profit margins to offer products at a lower cost to attract more customers. The book’s author, Michael Porter, also explains the disastrous effect of price wars, which occur when multiple companies compete to be cost leaders.
differentiation strategy
The second strategy is to create a competitive advantage by taking advantage of characteristics that are truly different from the competition. the differentiating factors must be valued by the client if the business wants to make a profit. The book also explains the methods through which a company can differentiate its products, services, and brand.
approach strategy
This is the strategy of serving a niche market. it is often employed by small businesses. the idea is to capture a target segment that is underserved or overserved by broader businesses. you can read more about the focus strategy in this fact article.
The book also identifies pitfalls to avoid, such as creating a product that is only marginally better than what the broader business offers.
if you are interested in learning more about michael porter, check out this interview with him
- reality check by jeremy dalton
reality check by jeremy dalton begins with explanations of ar and vr and the differences between them. we learn that ar and rv have very different applications and what kind of “reality” might make the most sense for your business.
vr and ar (collectively called xr; extended reality) will soon be ubiquitous. it’s just a question of when; global market insights reports that the size of the ar market will exceed $50 billion by 2024.
It is important to mention that aside from gaming, the sectors expected to experience the highest growth in virtual reality and augmented reality are healthcare (38%), education (28%), workforce development labor (24%), manufacturing (21%), automotive (19%), marketing (16%), logistics (16%), retail (15%), and military (13%). xrs can be used for operational tasks, such as developing hard and soft staff skills, handling emergencies, etc., or offer a function such as allowing customers to interact with the product.
The book is also based on case studies, providing the reader with practical strategic insights for adopting new technologies.
- leading from the future by josh suskewicz & w mark johnson
This book introduces the reader to the idea of thinking about the “future-behind”. Think of it this way: If your organization has a problem, consider a future where the problem has been solved and everyone involved wins. This book guides the reader in strategizing a path to achieve that solution.
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Another approach to this method is to imagine a future where your customers use a radically different product. the idea is not about making a significant improvement in the way you are doing things; rather, it’s about seeing them from a whole new perspective..
The book also provides action steps on how to envision, plan, and implement breakthrough innovations, develop a visionary mindset, and make innovation a way of life.
lead from the future offers practical information on how to align your team with the vision and make your organization’s culture innovation-oriented.
- leadership strategy and tactics by jocko willink
Addressing the psyche of being a leader, this book is primarily aimed at people looking to improve their leadership skills.
The author, Jocko Willink, is a former member of the US. uu. navy seal whose experience in the field taught him valuable lessons, such as how business leaders can be forceful without offending people, the importance of teamwork, how to keep communication simple, and how to interact with other leaders.
The first part explains the basic principles and foundation of leadership strategies that will help you understand what is expected of a good leader.
The second half of the book is about putting theory into practice, teaching you how to be a good leader who strategizes and communicates well and inspires others to take practical action.
To be an effective leader, you must strike the right balance between making sure people get their jobs done and micromanaging. clearly, this is a challenge; As reported by the ddi global survey, “57% of employees left their job because of their manager.”
- blue ocean strategy by w. Chan Kim & renée mauborgne
Today’s competition is fierce, and to stay afloat many companies have to throw a large part of their profit margin overboard. This happens when many companies with the same product or service try to serve the same market.
The blue ocean strategy suggests a combination of differentiation and low cost to open up new market space for companies. The book provides readers with frameworks that help the strategic planning process go beyond existing demand, create and execute new strategies, and align the team with the blue ocean concept.
To capture or build a new market, a company must innovate. Surprisingly, according to a McKinsey report, 80% of executives agree that their business model is at risk of disruption.
When many companies “swim” in the same ocean, the water turns red like blood. therefore, it is imperative that innovative leaders move into a blue ocean that sparkles with opportunity and the potential for rapid growth.
As simple as it sounds, expanding into an untapped market is difficult in practice. The book teaches business leaders, managers, and entrepreneurs how to validate their ideas using a strategy canvas to avoid sinking into the Red Ocean.
- the four disciplines of execution by chris mcchesney, sean covey & jim huling
When you’re done planning, it’s time to execute. Like strategy, execution tactics must be based on tangible disciplines. these disciplines allow teams to stick to the plan when things get unpredictable.
the four disciplines of execution covers four disciplines of execution:
- focus on the tremendously important goals
The book suggests that teams should brainstorm and decide on critical goals. consequently, each team must dedicate 20% of their time per day to working towards that goal; no team should have more than two critical objectives.
according to a survey by bridges business consultancy, 67% of strategies fail due to poor implementation. therefore, it is recommended that companies keep the number of goals to a minimum to ensure better implementation of the strategy.
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In addition, senior management or the board of directors must not interfere with the goal setting of their lower-level teams. Preferably, management should have the ability to veto, as this process allows everyone in the organization to participate in the goal-setting process.
- act on lead measures
results for larger goals are not readily available, but organizations can measure results for sub-goals which can be defined as indicators of progress towards achieving larger goals.
- keep a bookmark
This discipline is about the practice of keeping score on the goals achieved by the team. such a practice enhances accountability and allows team members to track milestones, achievements, and areas for growth.
- be responsible
While the first three disciplines deal with the execution part, the last one focuses on maintaining momentum.
In short, this strategy book will provide you with insights on how to conduct sessions where teams can account for past results, review their efforts and results, and plan a new competitive strategy.
- richard rumelt’s good strategy bad strategy
Good Strategy Bad Strategy is a great book to read when you’ve identified problems and created a strategy to solve them, but aren’t entirely sure if your strategy is good or bad. you may be asking yourself the following questions about your strategy:
- Are you taking the right path?
- should the strategy be based on intuition?
- what and how many factors should you include when testing the effectiveness of your strategy?
Fortunately, this book answers all those questions.
When you know what a bad strategy is, you’ll get better at creating good strategies. A 2016 bridge business consultancy reports that “67% of leaders believe their organization is good at strategizing (up from 80% in 2012).”
With the help of examples, this book illustrates the differences between good and bad strategies. for example, bad strategies are full of fluff and have inherently bad goals. The book also explains the core strategies that contribute to a successful strategy.
Good Strategy, Bad Strategy is a must-read for all leaders, managers, and entrepreneurs who want to build a solid foundation in strategy making and avoid common mistakes.
- crossing the abyss by geoffrey a. mooring
This book is for new businesses, especially those planning to launch a new product.
many new products lose interest after the first rounds of funding. as a result, this leads to the closure of new companies that showed promise in their initial phase.
The book points out the reasons for such failures, such as prospects and investors losing interest in the product, or products not delivering on their promise.
The figurative chasm is the gap between early adopters and early majority on the adoption lifecycle graph.
the book crossing the abyss presents strategies that leaders can use to attract the initial majority, which is often looking for the intrinsic value of the product; this is in contrast to early adopters who aggressively support new inventions.
take your strategic planning to the next level
Once you’ve finished reading these books, don’t forget to implement their advice. The right knowledge and tools will take your strategic thinking and planning skills to the next level!
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