To Be and Not to Be
The key to a successful strategy often lies in what you decide not to do.
While it might seem counterintuitive, defining what you won't pursue can be more impactful than defining what you will. By spelling out your "why nots" and "what nots," you sharpen your focus and reinforce your distinct position in the market. This process helps both leaders and teams clarify what the organization stands for, ultimately bringing sharper focus and resilience to strategic decisions.
Via negativa, a concept popularized by Nassim Taleb, emphasizes that knowing what to avoid can often be even more powerful than knowing what to pursue. Taleb explains it this way: “We know what is wrong with more clarity than what is right, and knowledge grows by subtraction.” [1] This idea of avoiding certain paths strengthens companies against unforeseen risks and distractions that can come with chasing too many initiatives.
Explaining rejected alternatives can also deepen understanding of your strategy and how it’s different from other options.
Edward Jones, for instance, developed a brokerage strategy by clarifying both what they were and what they were not. They chose to target individual investors in rural areas and sell only transparent, low-risk products. To stay true to this identity, they decided not to target institutional investors, urban areas, or complex financial products. John Bachmann, their managing partner from 1980-2003, brilliantly recognized the value of communicating this approach and emphasized the importance of explaining why certain options weren’t chosen: “Unlike most other competitors in the industry, we target and sell only to individual investors, not to institutional ones. Within this segment, we focus on individuals in rural America, not in urban areas. What we sell to them is “peace of mind” and, as a result, we do not sell exotic derivatives or risky products—instead we select transparent and safe products to promote. Unlike our competitors that sell their own in-house mutual funds, we do not manufacture the products that we sell. Instead of big offices in large cities, we have small offices that are placed in small communities to be convenient for the customer. In addition, each office is run by one, not two and not three Investment Representatives.” [2]
There's outstanding in clarity with each of his "nots" that is much more powerful than the original statement alone.
Longtime senior executive Angela Kapp emphasizes that “effective execution often boils down to simplicity.” She points out that the more concise and specific the strategy, the better teams can focus on executing it well. “Strategy is as much about what you are NOT going to do as what you are,” Kapp says.
Clarifying your “why nots” and “what nots” is more than a method of avoiding missteps, it’s an exercise in intentionality. By saying “no” to paths that dilute focus and by clearly stating which paths you are choosing not to take, you empower your team to execute with clarity and conviction.
Here are some guiding questions to help shape a “why not/what not” approach in your strategy:
What specific paths have we considered and decided not to take?
List them clearly, and ask if you’ve communicated these boundaries clearly enough for team members to understand the focus.
How does this approach differ from competitors?
Explore what your “not” choices say about your company’s priorities and positioning. Are they sharp enough to help your team stay focused on what makes you different?
What impact could these “why nots” have on our resources and focus?
Review the potential benefits of saying “no” to certain paths. Will this free up resources for the things that matter most?
Will these choices help bring clarity to the team?
Evaluate how your “why not” decisions can support daily decision-making and align your team’s efforts.
Footnotes:
[1] Nassim Nicholas Taleb, Skin in the Game: Hidden Asymmetries in Daily Life.
[2] HBR article, “3 Ways to Clearly Communicate Your Company’s Strategy,” May 2024【https://hbr.org/2024/05/3-ways-to-clearly-communicate-your-companys-strategy】
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This post is an excerpt from my upcoming book, a practical handbook for executing strategy from an operator’s point of view. Drawing on decades of real-world experience, it’s designed to help leaders turn strategy into action through clear, actionable steps. Stay tuned for more insights and updates as we get closer to launch!
