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The Strategy Gap

What is it?

A lack of precision in developing a company's growth strategy.

Detailed Description

This concept refers to the disparity that exists between a company's strategic vision and its operational execution, hindering its ability to achieve sustainable growth. Recognizing and addressing this gap is crucial for startups, as it can provide them with a distinct advantage in the highly competitive business landscape.

The Strategy Gap exists when there is a misalignment between the strategic aspirations of a startup or venture and the tactics implemented to achieve those goals. It is often caused by a lack of clarity or communication within the organization, insufficient resources or expertise, or poor execution of the chosen strategy. This disconnect results in a gap where the company falls short of realizing its maximum potential.

To overcome the Strategy Gap, it is essential to focus on three key aspects: strategic alignment, resource optimization, and effective execution.
1. Strategic Alignment:
Strategic alignment ensures that all stakeholders within the startup share a common vision, goals, and objectives. It necessitates mapping out the company's purpose, identifying target markets, defining unique value propositions, and outlining a clear growth strategy. By aligning the team's efforts towards a common objective, a startup can harness collective energy and resources, resulting in increased efficiency and productivity.

2. Resource Optimization:
Resource optimization involves identifying and allocating resources, both financial and non-financial, in a manner that supports the strategic goals of the startup. This includes properly allocating funds, human capital, time, and technological resources to initiatives that drive growth and value creation. Through diligent resource management, startups can effectively bridge the Strategy Gap by leveraging available assets and addressing any resource scarcity.

3. Effective Execution:
Execution plays a pivotal role in closing the Strategy Gap. It involves converting strategic plans into actionable tasks and diligently following through on their implementation. Execution requires a systematic and agile approach, emphasizing continuous monitoring and adaptation based on market dynamics, customer feedback, and industry trends. Strong execution capabilities enable startups to bridge the Strategy Gap by aligning day-to-day operations with the overarching strategic vision.

Understanding the Strategy Gap and actively addressing it can provide numerous benefits and a significant business advantage for startups and ventures:
1. Competitive Edge: By bridging the Strategy Gap, startups can outperform competitors who may struggle with alignment, resource allocation, or execution challenges. The resulting cohesive strategy and effective implementation provide a competitive advantage, enabling the startup to differentiate itself in the market.

2. Sustainability and Growth: A comprehensive growth strategy, supported by effective execution, positions startups for sustainable growth. By bridging the Strategy Gap, startups can develop a solid foundation for scaling their business, attracting investors, and achieving long-term success.

3. Resource Optimization: Addressing the Strategy Gap involves optimizing resource allocation to ensure maximum efficiency and effectiveness. Startups that master this concept can allocate their scarce resources wisely and reduce wasteful investments, leading to improved financial performance and greater value creation.

4. Organizational Alignment: Bridging the Strategy Gap fosters organizational alignment, ensuring that every team member shares a common understanding of the company's strategic direction. This cohesion creates a positive and focused work environment, fostering collaboration, innovation, and employee satisfaction.

Recognizing and addressing the Strategy Gap is crucial for startups and ventures. By ensuring strategic alignment, optimizing resources, and executing effectively, startups can bridge this gap and attain a distinct business advantage. Prioritizing this concept empowers entrepreneurs to chart a path to sustained growth, successfully attract investors, and ultimately emerge as frontrunners in their respective industries.

For more on the Three Gaps, visit
For more on Positioning and how it supports solving the Strategy Gap, visit

Strategy, Execution

Thought Leaders on this

David Isaac Mathews

Original Sources or Resources for Further Reading

David Isaac Mathews, Growth.

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