What comes first? The Chicken or the Egg - Execution or Strategy?

This classic paradox has baffled the brightest minds in the planet for centuries. Regardless of the correct answer, it boils down to process and which process is correct to start the cycle. Today I present you with a new paradox: which comes first when creating a successful business: Starting Up (Execution) and learning as you go along or Planning your Business (Strategy) before you hit the ground? Again, which process is best to begin the cycle?

What is a business strategy?

A strategy is simply a document/roadmap which comes from the process of IDENTIFYING and PLANNING which activities in your business will help you achieve your vision. This is not your “to do list”, but rather the broader goals you will reach within a specified time frame. These are: o The “What” you need to achieve, e.g. Your volume targets, financial targets, sales & marketing, channels/tools and operational set-up. o The “When”, i.e., timing: which categories of business will help you get there faster, e.g. One service/product may give you a financial base, but may not be the “niche” which differentiates you from other providers; when you activate which marketing channels, etc. o The “How”: How are you going to get the sales; where and how will you communicate, how often and what the content of your communication will be (are you just selling your service, or reaching an audience on an emotional level), and so forth.

Taking the above into account, and drawing a parallel with the chicken and egg paradox: The question is, when starting a business do you need a business strategy (the egg) to make your business a success, or do you execute first (chicken) and possibly develop strategy once your business is fully operational?

Can a business run without a strategy?

If you think that it is possible to create a business without a strategy, and grow it to a level of success, you are not wrong; but I would be careless not to advise that businesses with an active strategic planning process have a better chance of achieving their vision in a set time frame than those without. Let me elaborate: Eggs come from Chickens

When we see an egg lying around, we would naturally believe that there is a chicken involved in its origin. The assumption here is that something full-grown existed before giving birth to something new. In the same light, we should always consider that a business strategy is based on already existing factors.

As a fully grown chicken yields output and contributes to economic and societal needs, similarly, a business which has been nurtured and fed can grow to a certain level. The question here is: Is it the optimal level for achieving YOUR vision? A farmer knows exactly what and when to feed his chickens to maximise their growth for his purposes (egg or meat production). He also ensures their environment is clean and safe and sheltered from the elements. A full-grown chicken which has been left to grow on its own, may not be fit for the intended purpose.

The natural cycle for businesses is to kick-off with execution. It is critical to get the business off the ground and continue growing. Similarly, as your business grows, some of the questions you should be asking are:

o Are my activities going to bring the maximum growth or am I “winging” it (no pun intended)

o Is my communication targeted?

o Am I investing in the right resources at the right time: Which is better-should I invest in

activity A now, and once that is established, move to Activity B?

o What is my business information telling me? Am I focusing on the right categories, at the right pricing?

If you are not asking some of these and other questions, you are not guiding your business, you are letting it guide you, and you will most likely end up in a place you never planned to be. The chicken is fully grown, but not fit for purpose!

Why your business needs a strategy

Chickens come from Eggs A full-grown chicken does not immediately bring to mind the hatching of an egg. When enjoying our favourite chicken dish we don’t think of the relation to the eggs in isle number 7 of the local supermarket, yet the egg hatched and grew into its purpose. The same applies in the business world: a fully-fledged business has a strong relationship with a well-thought-out business strategy. Think of your business as a car on a journey. Before beginning the journey, you not only decide where you are going, you PLAN your journey: route, stops, and time frame to avoid getting lost, running out of fuel, and not reaching your destination on time. Many businesses without a strategy or plan struggle to make it successful, spending more energy and time to get the growth they need, as strategy not only drives the direction of your business, it provides a gauge to measure performance and progress against your goals. As Ed Sykota says: “If you can’t measure it, you probably can’t manage it. Things you measure tend to improve.” Every business has a vision; visions are what gives birth to a business, but strategic planning sets the goals, measures, adapts and formalizes that vision. Apple, for example, had a vision to make an accessible and affordable computer which was not so big. Fast-forward to today, Apple has achieved that, but it was only made possible because they had a clear initial plan. The strategy was the egg...

Conclusion

What then, is the outcome of this paradox? The Natural Cycle: The Chicken and the Egg are Interdependent Execution aligned to the business strategy is the optimal recipe for success. Whichever one you opt to start with, is up to you, however, for the best results, both strategy and execution need to be implemented as soon as possible. When the growth activities of a business are planned, it limits confusion and overwhelm and allows the entrepreneur to push their passion in the right direction. Similarly, in execution we learn lessons in business which can never be theorised, and this allows you to adjust the business direction based on time and experience and changes in the market.

Many companies have changed the direction of their original business strategy. Facebook, for example, was initially designed to be a secret social network among college students. It only became Facebook as we know it today after it began its expansion to high school learners and the rest of the world later. Today Facebook houses services such as Market Place and advertisement placement. To be fair, Facebook HAD an initial strategy but adjusted it based on feedback performance, demand, etc. This led to Facebook implementing an expansion strategy for their intended growth at that stage of their business. They therefore focused on what was working and expanded on that. It was only through its execution that business experience was gained, and it was able to expand its strategy for multiple streams of revenue. The business experience gave birth to the strategy or in other terms, the initial egg hatched & grew and the grown chicken laid a new egg.

In conclusion, both the chicken and the egg need each other to fully be effective. Similarly in business, both strategy and execution are not only needed but, if synergised correctly, leads to accelerated growth. Strategy is a cyclical process: Plan --> Implement --> Learn --> Use the learnings to Plan, and so the cycle continues.

Ideally strategy should be part of the creation of the business, but it is never too late to start implementing strategic thinking and planning in your business. This will help you focus on the right activities to guide your business growth and achieve your desired vision. To answer the initial question – it was the egg (science says so, not me!)

Author: Pearl Hitzeroth