Why You Need Just One Strategy

“Strategy” is overused and misunderstood. Many companies treat strategy as a label for anything deemed necessary. They speak of a marketing strategy, an IT strategy, a supply chain strategy, and even a government strategy. However, according to Michael Porter, one of the foremost authorities on strategy, this fragmented approach misses the essence of what strategy truly is.

Porter’s perspective is clear: there can only be one strategy for any particular business. Strategy is inherently integrative — it’s about how all the different parts of the business fit together into a coherent whole. Breaking strategy into separate pieces undermines this integration and risks leaving a business without any real strategy.

The Overarching Nature of Strategy

As Porter explains, strategy is not just a collection of plans or goals. The framework aligns all an organisation’s activities, functions, and decisions. A company’s strategy determines how it competes, what it prioritizes, and where it allocates resources. Splitting this into various “strategies” for different departments dilutes its power and creates conflicting priorities.

For instance, a company may claim a marketing strategy focused on premium positioning while its supply chain emphasizes cost-cutting. This contradiction undermines both efforts and confuses customers and employees alike. The result? A fragmented organization that struggles to compete effectively.

Porter emphasizes that strategy is about making choices. It’s about deciding what not to do as much as what to do. These trade-offs are what make strategy distinctive and powerful. Without them, companies risk trying to do everything and excelling at nothing.

Why Fragmented Strategies Don’t Work

When organizations divide strategy into multiple plans, they often encounter significant challenges:

• Lack of Focus: Teams lose sight of the overarching goals and prioritize departmental objectives.
• Misalignment: Different functions may pursue conflicting agendas, leading to inefficiencies and wasted resources.
• Inconsistency: Mixed messages about the company’s priorities confuse internal and external stakeholders.
• Reduced Agility: A fragmented approach slows decision-making and makes it harder to adapt to changes in the market.

These issues stem from a fundamental misunderstanding of the strategy’s purpose. Strategy isn’t about managing individual functions; it’s about integrating them into a unified whole.

Integrating Strategy Across the Business

To build a cohesive strategy, businesses must take a holistic approach. Porter’s insights offer a clear path forward:

1. Define a Clear Competitive Position: Decide where you will compete and what unique value you will offer. This choice should guide all other decisions.
2. Align All Functions: Ensure every department’s actions and objectives support the overall strategy. Marketing, IT, operations, and supply chain should work together seamlessly.
3. Prioritize Trade-offs: Recognize that pursuing one goal often means sacrificing another. For example, a company focused on cost leadership may need to forgo premium features.
4. Break Down Silos: Encourage cross-functional collaboration to ensure consistency and integration across the organization.
5. Communicate Effectively: Make sure the organization understands the strategy and their role in executing it.
6. Adapt Over Time: Regularly revisit the strategy to ensure it remains relevant in a changing environment.

One Strategy, Many Components

Porter’s perspective doesn’t dismiss the importance of individual functions within a business. Marketing, IT, supply chain, and other areas play critical roles. However, their efforts must align under a single, cohesive strategy. These components should not operate independently but as interconnected parts of a larger whole.

For example, a company pursuing a differentiation strategy might focus on innovative product features and superior customer service. In this case, marketing efforts should highlight these unique qualities while operations and supply chains ensure product quality and timely delivery. IT can support this by implementing systems that enhance the customer experience. The business can deliver consistent customer value when every function aligns with the overarching strategy.

The Risks of Ignoring Integration

Failing to integrate strategy across the organization can lead to serious consequences. Companies that treat strategy as a collection of independent initiatives often struggle to achieve their goals. Resources are wasted, teams become demotivated, and competitors gain an edge. Most importantly, the organization’s ability to deliver customer value is compromised.

Porter’s warning is clear: the more businesses divide strategy into separate pieces, the less likely they are to have a strategy. True strategy requires coherence and integration. It’s not just about setting goals — it’s about ensuring that every part of the business works together to achieve them.

The Takeaway: Strategy as a Unifying Force

Michael Porter’s insights challenge businesses to rethink their approach to strategy. Organizations should build a unified strategy instead of fragmenting their efforts into multiple plans. This strategy should provide a clear framework for decision-making, align all functions, and guide the organization toward sustainable success.

A cohesive strategy doesn’t just create alignment — it empowers teams to work more effectively. Employees become more engaged and motivated when they understand the big picture and how their work contributes to it. Customers also benefit from a more consistent and compelling value proposition.

A unified strategy is more critical than ever in a rapidly changing world. It provides the clarity and agility needed to navigate uncertainty and seize opportunities. By embracing Porter’s principles, businesses can move beyond fragmented plans and build the integrated strategies they need to thrive.

Take Your Business to the Next Level

Visualise Solutions is a boutique strategy consultancy firm based in Leicestershire, UK. Transform your business with our strategic advisory services, focusing on innovation, strategy formulation, and execution. Utilise our expertise in strategy, business model innovation, OKRs, and balanced scorecards.

You can learn more about us by contacting us now.