For decades, the saying went: “No one ever got fired for hiring McKinsey or BCG.” These firms, and others like them, represented the gold standard for corporate strategy. But recently, a seismic shift is shaking this narrative. A top executive I know of was recently unceremoniously removed by their board—not for incompetence or malfeasance, but for outsourcing strategy to one of these big-name firms.
The board’s argument? If you need big consulting to tell you what to do, you have no business leading.
If you’re a business leader, this should be a wake-up call. Strategy isn’t something you can—or should—delegate wholesale. It’s the single most important skill a leader must have to succeed, and yet it’s a skill that many leaders fundamentally lack.
Strategy: The Missing Competency
The typical career trajectory for executives revolves around deep expertise in specific domains—finance, operations, sales, or technology. People rise through the ranks based on their subject matter expertise and their ability to deliver results in their functional area. Rarely do these career paths prioritize or even touch on the art and science of strategy.
This creates a glaring gap: leaders end up at the helm of organizations without the tools or frameworks to chart a coherent path forward. And when they’re faced with complex decisions, they default to outsourcing their most critical responsibility—strategy.
But here’s the truth: strategy isn’t some mystical black box that only the elite consultants can unlock. It’s not a 400-slide presentation deck filled with data points. Strategy is about clarity. It’s about making choices—what to do, what not to do, and how to allocate resources to achieve your goals.
Why Outsourcing Strategy Is a Red Flag
When boards see leaders outsourcing strategy design to big consulting firms, they interpret it as a sign of weakness. And they’re right to do so. If you don’t understand your own organization, market, and future well enough to lead the process yourself, why should anyone trust you to execute the plan?
Outsourcing also creates a dangerous disconnect. Consultants don’t live and breathe your organization. They may provide valuable insights or analyses, but they’ll never fully grasp your company’s culture, nuances, and potential the way you or your team do.
That’s not to say consultants don’t have a role to play. They’re excellent for providing specialized knowledge, conducting in-depth market analyses, or facilitating discrete elements of the process. But when it comes to designing your strategy, you can’t abdicate ownership.
The Consequences of Strategy Illiteracy
When leaders lack knowledge about strategy creation, it shows in the outcomes. A poorly designed strategy often leads to confusion and inconsistency across teams, resulting in wasted resources and missed opportunities. Without a clear strategy, organizations fall into the trap of chasing short-term wins or responding to competitors rather than setting their own course. Employees, investors, and stakeholders expect leaders to provide vision and direction. When that leadership is outsourced, trust erodes.
The Solution: Build Strategic Competence
Leaders need to understand what strategy is, how to design it, and how to lead its implementation. Here’s how to get started:
- Learn the Fundamentals Strategy isn’t rocket science, but it does require a structured approach. Invest in education—read books, take courses, and learn from those who’ve mastered the craft. Understand frameworks like 9EOI, embedding strategy in your organizational realities.
- Engage External Facilitators, Not Strategy Designers Instead of hiring consultants to dictate your strategy, work with external facilitators to guide your team through the process. These facilitators bring structure, objectivity, and experience without taking ownership away from you. They help you ask the right questions and push your thinking, but the answers must come from within your organization.
- Build a Strategic Leadership Team Strategy is a team sport. Surround yourself with a diverse group of leaders who bring different perspectives and insights. Encourage debate, challenge assumptions, and collaborate to design a strategy that aligns with your company’s goals and realities.
- Focus on Implementation Even the best strategy is useless if it isn’t executed well. Ensure you have the systems, processes, and accountability in place to translate your strategy into action. Help your leaders across the business understand the strategy and build the capabilities to translate strategy into each area and every job.
- Make Strategy a Continuous Process Strategy isn’t a one-time event. Your strategy needs to evolve as you progress and learn. Regularly revisit and refine your strategy to stay on top of things.
A New Standard for Leadership
The days of relying on big consulting firms to define your strategy are over. Boards and stakeholders now expect leaders who are able to lead strategy design and implementation.
If you’re an executive, it’s time to take a hard look in the mirror. Are you ready to own your organization’s future? Or are you outsourcing the most critical aspect of your role?
As the story of that ousted executive shows, the stakes have never been higher. It’s not enough to deliver results in your functional area or lean on others for strategic direction. To lead in today’s world, you need to master strategy—or risk being left behind.
Main image by Sarah B
- Written by: Alex Brueckmann
- Posted on: November 27, 2024
- Tags: 9EOI, business strategy, leadership, strategy