Part 7 of 19 in Strategy in the Indian Startup Trenches← Part 6Part 8 →
Most Indian founders obsess over scaling fast, but they fail to realize that their strategy is built on sand. A good strategy isn’t a deck full of buzzwords or a list of dreams; it’s a tangible argument that tackles real challenges. If you can’t diagnose the core issue, your guiding policy will be directionless, and your coherent actions will clash like a bad orchestra. Let’s cut the fluff and dive into the core of a good strategy, a kernel that could save your startup from going belly-up.
The Kernel of a Good Strategy
Diagnosis: Face the Brutal Facts
A proper diagnosis is the bedrock of any good strategy. It’s not about wishful thinking or lofty ambitions. It’s about understanding the actual situation, the real bottlenecks your startup faces. Flipkart knew this when they started. The real issue wasn’t just building an e-commerce platform; it was the lack of trust Indian customers had in online payments. They didn’t copy Amazon blindly; they diagnosed the Indian market’s unique challenges.
Without a sharp diagnosis, you’re just shooting in the dark. Spend less time on PowerPoint and more time in the trenches with your customers. What are their pain points? What keeps them from adopting your solution? If you can’t answer these questions, you’re not ready to scale.
Guiding Policy: Your Strategic Compass
Once you diagnose the problem, your guiding policy becomes your strategic compass. It’s not a goal like “reach 10 million users.” It’s a roadmap that directs your actions. Think of it as the slope that defines which actions roll downhill effortlessly and which ones will require a push.
Take the example of Zoho. Their guiding policy was to build a self-sustaining business without external funding. This wasn’t just an ideological stance; it was a strategy tailored to their diagnosis of the market and their capabilities. Your guiding policy should be just as specific and actionable.
Coherent Actions: The Execution Engine
Coherent actions are the steps you take to implement your guiding policy. They should reinforce each other and align with the policy. If they don’t, your strategy will collapse under its own contradictions. For instance, if your policy is cost leadership, then launching a high-budget celebrity campaign is counterproductive.
Remember, your actions must be coherent, not chaotic. Flipkart’s decision to offer cash on delivery wasn’t a random feature; it was a coherent action aligned with their diagnosis of trust issues in Indian e-commerce. Each action should serve a clear purpose and move your strategy forward.
Strategy as Design, Not Cheerleading
Think of strategy like architecture, not a motivational speech. Good design is about working with constraints, not against them. You can’t just copy-paste a successful strategy from another company. Zoho’s strategy worked for Zoho because it was crafted around their unique circumstances. Jio’s free-data blitz worked because they had the resources and network to pull it off.
Don’t fall into the trap of imitating successful companies without understanding their context. Your strategy should be as unique as your startup. It should be a design tailored to your market, your resources, and your challenges.
The Bottom Line
Forget about creating a 90-page strategy document filled with jargon. Focus on diagnosing the real challenges, crafting a guiding policy that addresses those challenges, and executing coherent actions that align with your strategy. This kernel approach isn’t just theoretical; it’s practical and essential for any Indian startup aiming to survive the competitive landscape. The core of a good strategy is not a slogan; it’s a hypothesis you can test and adapt.
FAQs
What is the most important part of a strategy?
The most crucial part of a strategy is the diagnosis. Without understanding the real challenges your startup faces, any guiding policy or actions will be misaligned and ineffective.
Why can’t I just copy a successful company’s strategy?
Successful strategies are deeply rooted in the specific context of the company. Copying them without understanding the unique circumstances and challenges faced by that company is not only ineffective but also potentially harmful.
How do I know if my strategy is working?
Your strategy should be falsifiable. Set clear metrics and timelines to evaluate whether your diagnosis and guiding policy are leading to the desired outcomes. If not, it’s time to re-evaluate your strategy.
Can a startup have multiple strategies?
A startup should have one cohesive strategy. Multiple conflicting strategies will dilute your focus and resources. Stick to a single, coherent strategic direction.
If you’re struggling to build a strategy that sticks, consider reaching out to seasoned mentors. At Malpani Ventures, we’re keen on helping you find the right path forward. Don’t hesitate to reach out.