Journal of Strategy and Management

Doing strategy
Jonathan Pugh L. Jay Bourgeois III

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Doing strategy
Jonathan Pugh
Darden School, Atlanta, Georgia, USA, and

172

L. Jay Bourgeois III

Darden School of Business, University of Virginia, Charlottesville, Virginia, USA
Abstract

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Purpose Most of todays conversations around crafting business strategy center on which strategic
framework is most appropriate for a firm, its strategist, or CEO to use. This opinion piece seeks to
argue that the focus on frameworks is inappropriate and distracts businesses from crafting holistic
and adaptive strategies. To rectify the situation, it aims to offer a more inclusive model for arriving at
strategic insights. It also suggests a method for implementing this model throughout the enterprise.
Design/methodology/approach The paper clarifies that the frameworks are really many
different sides of the same coin and are, at best, approximations for how strategy is really developed.
But what does that mean in terms of actually doing strategy? Is this not the point of strategy
literature, consultants, and business schools, to teach us? While one does not purport to have all the
answers on this front, one has begun to develop a theory around how different tools available to the
strategic thinker can be brought together to develop as robust a strategic process as possible.
Findings Ultimately, strategy is about learning, discovering, and inventing. Strategy analysis tools
aid in the learning about the industry, ones realized strategies, ones capabilities and economics.
The tools are also tools of discovery: what options make their appearance as one goes through the data
and analytical processes to interpret the data? Both of these learning and discovery should reveal
the low-hanging fruit for incremental improvement of the current position. It is only after much
homework and intellectual sweat that the inventions and potential blue oceans sparked by strategic
intuition come to the fore. That is the source of true strategic invention and innovation.
Originality/value The paper should be useful to strategy practitioners and leaders of
organizations as they guide their institutions into the future.
Keywords Management strategy, Strategic planning, Business analysis
Paper type Conceptual paper

Strategy is not a thing it is not a person, a meeting, a bound document, a PowerPoint

presentation, a letter from the CEO in an annual report. Strategy, rather, is an ongoing
process. Strategy is a way of thinking about a business, of assessing its strengths, of
diagnosing its weaknesses, of envisioning its possibilities. If we were to boil down
what we have learned from three decades of strategy advisory experience and a review
of current strategy literature, this basic idea would be the result that strategy is not
something we have, it is something we do and have to keep doing in order to support
and grow a successful business or organization.
If we accept the assertion then, that strategy is a continuous evolutionary process
rather than an outcome or end point, the question then becomes: how do we do
strategy? What tools are available to us to navigate this process?
Journal of Strategy and Management
Vol. 4 No. 2, 2011
pp. 172-179
q Emerald Group Publishing Limited
1755-425X
DOI 10.1108/17554251111128637

The framework fallacy

Over the past three decades numerous frameworks for how to do strategy have been
developed, and along with each of them have come equally numerous proponents and
detractors. From the famed Five Forces (Porter, 1979; Oster, 1999), the profit zone

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(Slywotzky and Morrison, 2002), blue ocean strategy (Kim and Mauborgne, 2005), the
resource-based view (Collis and Montgomery, 2008), strategy as options (Williamson,
1999; Beinhocker, 1999), effectual reasoning (Sarasvathy, 2008), and the BCG or
McKinsey matrices (Bourgeois, 1997), the question about the correct, or at least most
relevant or productive, strategy frameworks motivates many of the practice-oriented
discussions about how to do strategy. But, from our point of view, if we are debating
which framework to use in order to construct our strategy, we are missing the point of
the process.
In fact, to take it one step further, when we define any one strategic idea as a
stand-alone framework, we have already missed the point. This is because, while often
separated and parsed out for academic articles or consulting white papers, these
different strategic ideas are merely components of one idea: reasonable and
aspirational strategic management. We believe the confusion around the use of
frameworks often arises because of the need to distinguish the various layers of
strategy from one another in order to thoroughly examine each of them. While this
process is necessary to some extent, it causes the examiner to fall prey to what we
might call the Heisenberg-esque uncertainty principle of firm strategy: if we attempt to
evaluate one aspect of a firms strategy through the lens of a given framework, we risk
losing perspective on where the firms full strategy is directing it. This point is
exacerbated by the fact that so much of the strategy that comes to fruition in the
market is actually emergent (rather than explicitly intended) strategy in the end a
firms strategy is what it does, not what it had planned to do (Mintzberg, 1978).
So, if we feel that strategy is a holistic process rather a set of distinct and discreet
frameworks, why do we bother to examine these frameworks at all? For us, the answer
to this question hinges on the desire to codify a process that, for many of the great
business leaders, happens intuitively. According to many authors, these people the
Jobs, Buffetts, Gates, Dells, Welchs of the world seem to wake up every morning with
a clear understanding of where the world is going and how to get there sooner and
more profitably. For the rest of us, if we were to rely wholly on emergent strategy to
drive our organizations development, we can assume that we would see a great many
more business failures we simply need some way to organize and prioritize the
mountains of data that are germane to developing a strategic direction.
Our delineation of strategic frameworks helps us to achieve this clarity by laying
out clear questions and lines of analysis for us to follow (a sort of color-by-numbers for
strategic thinkers, if you will). Recognizing this need, however, we must also remember
that the codified frameworks we develop are, at best, proxies for this inherent strategic
insight and that our ultimate goal should be to train this insight into ourselves and our
institutions through constant practice.
Strategic continua
So this is all well and good we have observed that strategy is a process, not a
destination. We have clarified that our frameworks are really many different sides of
the same coin and are at best, approximations for how strategy is really developed.
But what does that mean in terms of actually doing strategy? Is this not the point of
strategy literature, consultants, and business schools, to teach us? While we do not
purport to have all the answers on this front, we have begun to develop a theory

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174

around how different tools available to us as strategic thinkers can be brought together
to develop as robust a strategic process as possible (see Table I).
In thinking through these frameworks, we find it useful to organize the tools on two
dimensions: first, the degree to which they are predominantly analysis- vs
action-focused and, second, the period during which they are predominantly
employed and over which they show their primary efficacy. For example, taking the
example of Porters Five Forces, we can see fairly clearly that this tool lends itself
towards in-depth analysis but, in and of itself, is not primarily focused on taking
action. The timing piece is a bit more troublesome, however. We contend that one of the
most common mistakes in employing the more analytical strategic tools is that people
feel most inclined to use them to describe the current state (or even recent historic state)
of the market and firm, but often fail to use them to evaluate the possible future states
of the world. Working on the assumption that the future is, in fact, the most important
time period for a business attempting to construct its competitive strategy, this seems
to be a crucial oversight. In fact, the real development of strategy requires us to look at
both the current and future states and then use the tools at our disposal in order to
bridge the gap between the two and make our organizations competitive in the future
world. Thus, we identify the five-forces tool as both current-period and future-focused.
This same analysis can be applied to each of the frameworks referenced previously
(see Table II).
Industry analysis
BCG/McKinsey matrices

Resource-based view
Blue ocean identification

Effectual reasoning

Strategy as options
Strategic intuition
Table I.
Strategic
tools/frameworks

Typified by Porters Five Forces, industry analysis asks firms to think

thoroughly about the structure and dynamics of their industry and the
implications on optimal strategies
Strategic positioning for a multi-business firm is simply a matter of
plotting the business units relative to one another on a matrix taking
into account industry attractiveness (e.g. growth) and competitive
strength (e.g. relative market share). The matrix dimensions are
informed by industry analyses and internal resources
RBV takes the position that all businesses compete based on distinct
resources or capabilities, some of which are stronger, more stable, and
more valuable than others
Thinking in terms of blue oceans means finding market spaces that
avoid the intense competition of established products. This often
requires an intense understanding of the consumer, leading to the
identification of unmet (and often unspoken) needs
Akin to RBV in its emphasis on an organizations means, effectual
thinking focuses on an organizations current resources and
determines how to use those resources in previously-unplanned
actions, while minimizing the risk involved (see Appendix, Effectual
Reasoning, for a description of this approach)
Options strategy holds that effective planning for an uncertain future
requires organizations to place many small bets on different initiatives
in order to make itself viable in a wide range of circumstances
Strategy intuition is a manner of approaching each problem or
situation as if it were new and unique, and drawing on diverse
knowledge and sources in order to develop new ways of dealing with
problems. Strategic intuition can occur at the top (Welch), during the
creation of a firm (Gates), or at lower levels during the course of events
(crescive management) (see Appendix, Strategic Intuition.)

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Framework

Analysis vs Action

Current vs Future

Industry analysis
BCG/McKinsey Matrix
Resource-based viewa
Descriptive
Prescriptive
Blue ocean identification
Effectual thinking
Strategy as options
Strategic intuition

Purely analysis
Purely analysis

Current/future
Current

Skews to analysis
Skews to action
Moderate action
Heavy action
Heavy action
Analysis and action

Current
Future
Current/future
Skews current
Future
Future

Note: For the purposes of this analysis, we have split RBV into two components: Descriptive and
Prescriptive. This distinction is meant to illustrate the difference between using RBV to explain and
clarify the sources of a firms competitive advantage(s), and using RBV to identify capabilities that will
be necessary to compete in the future

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175

Table II.
Strategic frameworks
focus and timeframe

As we apply this analysis, we see that we possess tools that span both the
analysis/action and current/future continua, applicable with regard to different
portions of the strategy formulation process. Furthermore, we are aware of the
overarching idea of strategic intuition that drives the overall context of our strategy
and can correspondingly lead to large-scale shifts in organizational direction when it
comes into play. We can visually conceptualize this universe of strategic tools as
follows (see Figure 1).
Following the generally accepted principle that the goal of any business or
organization is to deliver sustained superior performance as judged against some
metric or group of metrics (bottom line, triple bottom line, etc.) we can surmise that a
well-run business will take part in initiatives and planning across multiple times
periods. It follows, then, that this multi-temporal strategic toolkit is not only convenient
but absolutely essential to achieving an organizations goals. By performing analyses
and taking strategic actions designed to have impacts in both the current and future

Figure 1.
Frameworks across
strategic continua

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176

Figure 2.
Whole-enterprise strategic
tool focus

periods, businesses can ensure that they will remain relevant and viable as time passes.
As a result, it is not a question of Which framework should we use? but rather How
do we use all the tools available to us to craft a robust and sustainable strategy?
Whole-enterprise driven strategy
Once more, though, if we stop at this point in our understanding of strategy
development, we will again miss a crucial part of the picture. Equally important as the
tools used to do strategy is the identification of those who should use those tools. All
too often, strategy development is conceived of as the purview of CEOs, planning
departments, or external consultants; little thought is given to the role of the entire
enterprise as a source of strategic direction. We feel this framing of the issue is
short-sighted at best and, at worst, threatens to leave a firm irrelevant in the face of
more nimble competition. The concept of crescive strategic management (Bourgeois
and Brodwin, 1984), taken along with our idea of strategic framework continuums,
provides an alternative conception of the strategy creation process.
The crescive model with its name derived from the Latin crescere, to grow most
importantly redefines the role of the CEO in strategy development. Rather than
crafting and imposing firm strategy from on high (as in the traditional top-down
model), the crescive CEO instead takes on the role of strategic mediator, picking from
among strategic options presented to him and meting out resources accordingly. As a
direct result of this change in the CEOs role, the crescive model also redefines the role
of all others within an organization. Put simply, for a CEO to have strategic options
from which to choose he or she must, by necessity, have staff at all levels capable and
able of developing strategic intuition and crafting these alternatives.
Of course, it is difficult to picture almost any organization, no matter how advanced,
in which all employees at all levels spend substantial portions of their day planning
or developing firm strategy in the conventional sense. How then can we rectify these
two seemingly conflicting ideas? We feel that the analysis/action continuum of
strategic tools provides insight to this answer. Specifically, we can recast the
analysis/action continuum as a high/low-level employee continuum or, perhaps more
pointedly, an executive/front-line continuum (see Figure 2).
Re-thinking the continuum in this manner, we are now provided with a guide as to
what roles all members of an organization can play in the strategy development
process. In essence, this suggests that the closer to the front-line employees are, the
more their roles allow for in-the-moment strategy development using action-oriented

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tools like options strategy, effectual thinking, and the like. In contrast, the more
employees are further up the organisation, the more their skills and roles offer them
opportunities to employ comparatively analytical strategic tools. Again, the outlier in
this model is the idea of strategic intuition which, based on the accumulation of
experience and insight over time, is a viable method of strategy formulation at all
levels of an organization.
Going back to the crescive model, this continuum helps to explain the roles
employees play in the development process on the front-line, action-oriented
strategic ideas are generated during the course of business or during personal
experimentation, and, through an organizational receptivity to bottom-up idea
generation, are passed upward through the chain of command. At the higher levels of
the organization, employees and leadership with broader views of the industry, market,
internal portfolio and the like then choose from the front-line ideas, picking those
strategic alternatives that best align with the overall direction of the firm.
We must bear in mind, however, that this executive/front-line continuum should
serve is a guide to the strategic strengths of various employees groups, not as a
definition of responsibilities. As we have asserted previously, the delineation of tools
and frameworks is merely a simplifying concept, and, thus to provide definitive role
descriptions based on this delineation would falsely frame the matter. No doubt
higher-levels employees can be counted on to think in an effectual manner about new
opportunities with existing resources, just as front-line employees can acquire unique
insights into the changing dynamics between suppliers, competitors, and customers
within their industry during the course of their work. What is important is that, in
order for a firm to remain competitive in its industry and valuable to all its
stakeholders, all members of an enterprise must be engaged in the strategy discovery
and development process, playing the roles and using the tools most appropriate for
their positions.
Land mines and exit ramps: strategy for the future
In the end, an analogy can help think though the different ways of doing strategy.
Imagine an Aston Martin being driven through a vast open space. Throughout this
space, placed irregularly and sometimes at great distances from one other, are land
mines and exit ramps that can be difficult to reliably see from a distance. As the driver
makes his way through the space, he attempts to avoid the mines and find the exit
ramps to get him out of the space. If, while he is still some ways away, the driver is
made aware of a possible mine or ramp on the horizon, it takes only a small change to
his course (i.e. a small turn of the wheel) to avoid or move toward the possible object.
However, if the driver chooses to ignore the potential object, preferring to hold his
course until he has a better sense for what lies before him, he invites the chance that he
will need to make larger and larger corrections as he gets closer. Taken to the extreme,
if the driver waits until he is right on top of the mine or ramp (at which point he can be
certain of its existence), he will have to jerk the steering wheel violently in order to
avoid the mine or make the ramp, possibly causing great damage to the car in any case.
This, to us, is a strong metaphor for our jobs as strategists, both as CEOs and as
front-line intuitors. While it is certainly imperative that we keep one eye on the road in
front of us we, above all else, need to maintain a clear view of the horizon, watching for
any mines that might be in our way or ramps that might allow us access to more

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appealing markets. If we spot a glimmer of them early, we can make small bets to move
us in the right direction. If, however, we wait until the future is absolutely certain, we
run the risk of complete ruin. Strategy is, at its core, nothing more than making the
most of our current situation and planning so that we are even better positioned in the
future. By taking full advantage of all of the strategic tools available to us and always
being aware of what lies in front of us, we can ensure that we are as prepared as
possible to sustain our superior performance for periods to come.
Ultimately, strategy is about learning, discovering, and inventing. Strategy analysis
tools aid in the learning about the industry, our realized strategies, our capabilities
and economics. The tools are also tools of discovery: what options make their
appearance as we go through the data and analytical processes to interpret the data?
Both of these learning and discovery should reveal the low-hanging fruit for
incremental improvement of current position. It is only after much homework and
intellectual sweat that the inventions and potential blue oceans sparked by strategic
intuition come to the fore. That is the source of true strategic invention and innovation.
References
Beinhocker, E.D. (1999), Robust adaptive strategies, Sloan Management Review, Spring,
pp. 95-106.
Bourgeois, L.J. (1997), Note on portfolio techniques for corporate strategic planning,
UVA-BP-0292 (1988, rev. February 1997).
Bourgeois, L.J. and Brodwin, D.R. (1984), Strategy implementation: five approaches to an elusive
phenomenon, Strategic Management Journal, Vol. 5 No. 3, pp. 241-64.
Collis, D.J. and Montgomery, C.A. (2008), Competing on resources, Harvard Business Review,
July-August, pp. 140-50.
Duggan, W. (2007), Strategic Intuition, Columbia Business School Publishing, New York, NY.
Kim, W.C. and Mauborgne, R. (2005), Blue Ocean Strategy, Harvard Business School Press,
Boston, MA.
Mintzberg, H. (1978), Patterns of strategy formation, Management Science, Vol. 24 No. 9, May,
pp. 934-48.
Oster, S.M. (1999), Modern Competitive Analysis, 3rd ed., Oxford University Press, Oxford.
Porter, M. (1979), How competitive forces shape strategy, Harvard Business Review,
March-April.
Sarasvathy, S.D. (2008), Effectuation: Elements of Entrepreneurial Expertise, Edward Elgar
Publishing, Aldershot.
Slywotzky, A.J. and Morrison, D.J. (2002), The Profit Zone, Times Books, Random House,
New York, NY.
Williamson, P.J. (1999), Strategy as options on the future, Sloan Management Review, Spring,
pp. 117-26.
Appendix
Effectual reasoning
Effectual reasoning, as identified by Saras Sarasvathy (2008), is a manner of thinking that stands
in contrast to the prevailing manner of business decision making in the world today, what she
terms causal reasoning. In Sarasvathys terminology, casual reasoning is typified by an
individual or organization marshaling available means to accomplish a predetermined goal. In

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comparison, effectuation is a process through which an actor examines the resources at his
disposal and then allows these means to determine a path and a goal for his efforts so as to
minimize the possibility and size of loss through the effort.
While Sarasvathy posits that effectuation is particularly useful for entrepreneurs and even
suggests that large, established organizations may be predisposed to causal reasoning, it is not
an undue stretch to imagine the application of effectuation in smaller pockets of businesses or in
cases of more innovation-minded business efforts. In essence, one can conceptualize effectual
reasoning as an in the moment application of options strategy only, rather than targeting a
given effort towards the development of a specific option, being more open to allowing options to
present themselves and develop over time.
Strategic intuition
Strategic intuition, an idea and term coined by William Duggan (2007), is an attempt to explain
and codify the process by which great strategic thinkers arrive at groundbreaking insights and
plans. At its essence, this idea, which stands in contrast to both ordinary intuition (gut) and
expert intuition (experience) as well as means-and-ends reasoning, describes the coming together
of previous experience and historical knowledge to provide a novel manner of addressing a new
problem.
Perhaps one of the clearest ways to conceptualize strategic intuition is to compare it to what it
is not. First, it is not ordinary intuition, that gut feeling that many of us get in the process of
living our daily lives and that draws on little previous experience. Second, it is not expert
intuition, that manner of split-second decision making made famous in Malcolm Gladwells
Blink, occurring as highly experienced practitioners draw on past occurrences to dissect a
similar problem. Finally, and most importantly, it is not typical means-and-ends reasoning,
calling on us to fully analyze a problem before us before coming to a reasoned conclusion as to
the appropriate next steps.
Rather, strategic intuition is the progression through which experience and historical
knowledge is stored within our brain and, as a new problem is presented to us, is allowed to
congeal and coalesce at its own pace to form a wholly new solution. Instead of jumping to a
conclusion based on similar problems, expert intuition allows practitioners to draw on disparate
experiences to address challenges that are entirely new to them. In Duggans (2007) words,
strategic intuition occurs when a flash of insight cuts through the fog of your mind with a clear,
shining thought [so that you can] see clearly what to do.

About the authors

Jonathan Pugh, a 2010 graduate of the Darden School, is currently a consultant at a major
international strategy consulting firm. Previously, he worked for a marketing consulting firm in
Waltham, Massachusetts.
L. Jay Bourgeois III is a Professor of Strategy at the Darden School, where he has taught for
24 years. He was formerly Associate Dean for International Affairs, during which he represented
the School worldwide and formulated its globalization strategy. Prior to Darden, he taught at the
Stanford Business School. He has been a strategy consultant to corporations, governments and
non-profits around the world for more than 30 years. L. Jay Bourgeois III is the corresponding
author and can be contacted at: jayb@virginia.edu

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