Do you have a strategy? Or do you just have a plan? Understanding the difference and how to define and execute on both is essential to transforming your business. Abhishek Rungta, founder and CEO of INT, realized he had been running his business without a strategy for far too long. Hear his journey and gain strategic insights from Jesper Sorensen, professor at Stanford Graduate School of Business, on why strategy is all about managing uncertainty.
Abhishek Rungta started his IT business in 1997 while he was still in college. But 10 years in, he faced a familiar predicament for founders. “We didn’t have any focus. Anyone who sent us an email was a customer,” he recalls. He admits that most of his business decisions lacked real strategy and were instead led “by gut feeling, not by real research or discussion within the organization.” By 2008, he was losing customers and employees because there was nothing that truly differentiated his company from the competition.
To grow his business he needed to be more than a low-cost provider — he needed a strategy to truly differentiate his business. “The way I look at it now is, what can I do which my competition will find extremely difficult to replicate?” Rungta explains.
According to Professor Sorensen, most organizations associate strategy with planning and tend to focus more on logistics (the planning) than on the logic of the underlying theory or strategy. “Strategy is mostly about the things that you can't control. So it's about what customers are going to want. What are your competitors going to do? Those are all things that you don't have any control over, so strategy is about managing all this uncertainty,” he says.
Sorensen explains that strategy is fundamentally about making an argument and then coming up with assumptions that support it. And you need to include assumptions about how uncertainty is going to resolve itself so you can accomplish your goals.
While it certainly didn’t happen overnight, Rungta eventually constructed a more complete strategic argument based on clear assumptions, namely the fact that clients valued speed over price and that regulated industries were ripe for targeting. And then he let those assumptions drive action.
Sorensen reminds entrepreneurs that there’s no real way to future-proof your strategy. “I don't think there's any kind of pill you can take that will guarantee your success against all the changes that might happen in the future,” he says. “But what you can do is you can say, okay, when a change comes in, I can then think about, well, does this impact the logic of my strategy or not?”
Listen to Rungta’s strategic pivot and leadership journey for what he calls his “25-year-old startup.” And get advice from Professor Sorensen on how to construct your own strategy and examine the assumptions that matter most.
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Grit & Growth