Book: This is Strategy

Seth Godin's "This is Strategy. Make Better Plans." is not a traditional corporate strategy manual but rather a guide for anyone seeking to make positive change by understanding and working with systems. The core idea revolves around recognizing that the world operates through interconnected systems, understanding their inherent objectives and feedback loops, and then strategically intervening to create desired outcomes. Godin emphasizes empathy, the importance of defining "better," focusing on small viable audiences, and persistent, iterative action as key elements of effective strategy. He debunks common strategic myths and provides a framework for thinking strategically in various contexts, from personal goals to large-scale change.

Main Themes and Important Ideas:

1. Strategy is About Understanding and Working with Systems: Godin argues that strategy is fundamentally about recognizing and interacting with the unseen systems that shape our world. He illustrates this with examples like the solar system, where no single entity is in control but gravity dictates the overall behavior.

• "Strategy builds systems, but it depends on them as well. Every successful system serves a purpose."
• "It’s difficult to strategize and make a difference if you don’t understand the systems that are working to keep things as they are."
• "It may be worth taking a moment to think about a system where there is clearly no one in charge." (referring to the solar system)

1. Systems Have Their Own Objectives and Persistence: Systems exist and persist because they fulfill certain needs or deliver on a promise, even if those aren't explicitly stated or ideal. Understanding these underlying objectives is crucial for effective intervention.

• "Every successful system serves a purpose. It might not be the purpose it says it serves, and it might not seem to make sense, but if the system sticks around, that’s because the system is delivering on a promise."
• "We’ve lived with them so long they have become invisible, but systems are everywhere... So why do they stick around?"

1. Empathy is Foundational to Strategy: To influence a system, one must understand the motivations, desires, and constraints of the individuals (nodes) within it. Decisions are driven by self-interest, which includes factors like status and affiliation.

• "Strategies Require Empathy" (section title)
• "Each person in a system will always act in their self-interest. That doesn’t necessarily mean that they’ll act selfishly. A healthy system is organized in a way that self-interest leads to behavior that’s in the common good."
• "The empathy of a useful strategy sees and respects the agency of everyone else."

1. The Power Lies Between Unlimited and Zero: We often overestimate or underestimate our ability to affect change within a system. True power lies in understanding the system's resilience and identifying leverage points for influence.

• "We need a strategy because we can’t simply order the system to follow our wishes... But systems are resilient and systems push back. The power you have lies somewhere between infinity and zero."

1. Feedback Loops Drive System Behavior: Understanding how a system responds to actions (feedback loops) is essential for adjusting tactics and achieving strategic goals. Delays in these loops can significantly impact outcomes.

• "What’s a Feedback Loop?" (section title)
• "All Persistent Systems Rely on Feedback Loops" (section title)
• "The Wildcard in Every Feedback Loop is the Delay" (section title)

1. Define "Better" Clearly: Strategy aims for improvement, but "better" is subjective and depends on who benefits and the specific criteria used for evaluation. Clarity on what constitutes "better" is crucial for setting effective goals.

• "Being Clear About “Better”" (section title)
• "Better for who? Does better mean cheaper, faster, more resilient, more sustainable..."

1. Focus on Small Viable Audiences: Instead of trying to appeal to everyone, successful strategies often start by deeply serving a small group of engaged individuals who can then become advocates and drive wider adoption.

• "The Minimum Viable Audience" (section title)
• "Find ten people... If they love it, they’ll each find ten more people... When you serve the smallest viable audience, your idea spreads."

1. Strategy is a Philosophy of Becoming, Not a Static Plan: Strategy is an ongoing process of adaptation and learning, not a fixed document. It requires constant attention to feedback and a willingness to adjust.

• "Strategy is a Philosophy of Becoming" (Table of the Riffs)
• "The journey, not an event."

1. Blueprints as Assertions of the Future: A strategic plan (blueprint) is not just a description of the present but an assertion of how things will be. It requires a clear understanding of the current system ("truth"), the desired future ("vision"), and the necessary resources ("assets").

• "A Blueprint is an Assertion" (section title)
• "This is the plan for a house. It imagines what it will take to create and what it will be like to inhabit. It’s a chance to live in a future that hasn’t happened yet."

1. Strategic Marketing Tells a True Story: Effective marketing is about identifying a problem, solving it, and then giving the customer a compelling and authentic story to share, enhancing their status and affiliation.

• "Strategic Marketing" (section title)
• "Marketing is the art of building a product or service that tells a story. A true story—one that resonates and changes the person who experiences it."

1. Embrace Constraints as Gifts: Limitations and restrictions can foster creativity and focus, leading to more effective and elegant strategies.

• "Constraints are a Gift" (section title)

1. Ignore Sunk Costs and Be Willing to Pivot: Past investments of time and resources should not dictate future decisions. Recognizing when a strategy is not working and being willing to change course is crucial.

• "Ignoring Sunk Costs: A Simple But Uncomfortable Idea" (section title)
• "Ignore Sunk Clowns" (section title)

1. Understand Status and Affiliation: These are powerful motivators within systems. Strategies that offer opportunities for increased status or stronger affiliation are more likely to succeed.

• "Thinking About “Status”" (section title)
• "We create value when we establish the conditions for status and affiliation to be delivered to those that seek it."

1. Leverage Network Effects: Strategies that capitalize on network effects, where the value of a product or service increases with the number of users, can create significant and sustainable impact.

• "Metcalfe’s Law is Waiting for You" (section title)
• "The value of a network goes up exponentially as more people engage with it."

1. Change Often Involves Pivoting, Not Revolution: Instead of trying to fundamentally alter what people want, effective strategies often find new ways for them to achieve their existing desires within a modified system.

• "Revolutions are Rare" (section title)
• "Change almost always involves a pivot. The change agent isn’t changing what the nodes in the system want—they’re changing how they get it."

Key Quotes:

• "Traction is progress." (Dedication)
• "Big problems require small solutions." (Dedication and Riff 51)
• "The work is easier if you can see where you’re headed." (Dedication)
• "Change creates tension." (Dedication and Riff 90)
• "Better is possible." (Dedication)
• "And once you see it, you can’t unsee it." (Introduction)
• "Strategy is a compass that helps us to take action when we’re uncertain, to build networks when we’re alone, and to persevere until the world we live in becomes the world we imagine." (Riff 40)
• "The secret of the new marketing: Find ten people." (Riff 50)
• "Not all needs have a market (Yet)." (Riff 71)
• "“Should” is the insistence of culture to cause us to conform to the systems it cares about—but should might not be what you need to make a difference." (Riff 83)
• "The big step between musician and rock star is the decision to sound like yourself instead of seeking to sound like everyone else." (Riff 94)
• "It means that you see the system." (On being a strategic thinker, Riff 96)
• "Choose Your Customers and Choose Your Future." (Riff 111)
• "The purpose of a system is what it does." (Attributed to Stanford Beer, Riff 118)
• "No one actually wants a diamond. They want the story it allows them to tell." (Riff 223)
• "Every Yes Requires Many No’s." (Riff 252)
• "People rarely get “believer’s remorse.” Instead, they will do almost anything to defend their identity and the system they’re in." (Riff 275)
• "Ignore sunk costs." (Riff 291)

Conclusion:

Godin's "This is Strategy." offers a refreshing and accessible perspective on strategic thinking. By shifting the focus from rigid planning to understanding dynamic systems and the human elements within them, he provides a valuable framework for anyone aiming to create meaningful change. The emphasis on empathy, iterative action, and serving niche audiences offers practical guidance for navigating complex environments and achieving desired outcomes, regardless of scale or industry. The book encourages readers to become more observant of the systems they operate within and to strategically leverage their understanding to build a better future.

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