Strategy

Bringing Strategy Into Day-to-Day Work in a Tech Company

Most tech companies claim to be strategy-driven. But in reality, strategy often lives in slide decks, quarterly offsites, or executive conversations — while day-to-day work is shaped by sprint boards, incident queues, customer requests, and deadlines. The real challenge is not defining strategy. It’s operationalizing it so that teams experience strategy as a practical guide for daily decisions.

This post explores how to weave strategy into everyday work so that it influences what people build, how they prioritize, and how they collaborate.

At its core, strategy answers three questions:

  1. Where will we play?

  2. How will we win?

  3. What capabilities and systems do we need to get there?

If strategy isn’t visible in daily choices — feature prioritization, hiring, architecture, pricing, partnerships — then it is not really strategy. It is a wish.

Embedding strategy into daily work means ensuring that:

  • engineers know why they are building something

  • product managers can say no with confidence

  • sales understands who is and isn’t the right customer

  • leadership reinforces choices that align with long-term direction

When strategy is alive, it becomes a shared lens for decision-making

Here are five practical ways to bring strategy into daily work:

1. Translate strategy into simple, memorable themes

People don’t think in 60-page strategy reports. They think in short, repeatable phrases.

For example:

  • “Win mid-market before enterprise.”

  • “Own the developer experience.”

  • “Land with API-first, expand with workflow.”

If your team cannot summarize the strategy in one or two sentences, it will never guide day-to-day actions. Start with clarity, not complexity.

2. Align roadmaps and backlogs to strategic outcomes

Sprints are where strategy lives or dies.

Instead of listing features by type, tie them to strategic outcomes:

  • improve activation in key segment

  • reduce time-to-value

  • protect core reliability

  • expand into adjacent workflow

A simple method: add a “strategic rationale” line to every major work item. If a story or project has no clear link to strategy, it’s either the wrong work — or the strategy is unclear.

3. Use metrics that reflect strategy, not just activity

Teams often track what is easy to measure: velocity, deployment frequency, ticket count. Those are useful, but they don't tell you whether you're moving in the right direction.

Tie dashboards to strategic metrics, such as:

  • market share in target segment

  • net revenue retention

  • adoption of strategic features

  • platform ecosystem activity

  • cost-to-serve for key customers

This helps teams see the connection between their everyday work and company-level progress.

4. Make “strategic fit” a standard question in decision discussions

Every significant decision — architecture, pricing change, feature investment, partnership — should be tested against strategy with a simple question:

👉 Does this strengthen or dilute our strategic position?

If the answer is unclear, pause.

Over time, this builds a culture where strategy is not a distant document but a habit of inquiry.

5. Tell stories, not just plans

Humans adopt strategy emotionally as much as logically.

Leaders should:

  • share customer stories that illustrate strategic focus

  • highlight teams that embodied the strategy in tough tradeoffs

  • celebrate saying no when something wasn’t aligned

People understand strategy best when they can see themselves in it.

The Granularities of Growth: Why Winners Zoom In Before They Scale Up

In business, “growth” is often discussed as if it were a single, linear outcome — a bigger number on a chart, a larger customer base, a higher valuation. But sustainable growth rarely comes from broad strokes. It comes from granularity: the discipline of dissecting your business into its smallest meaningful components to understand where growth is truly happening, why, and how to accelerate it. High-performing companies don’t just chase growth. They examine it under a microscope.

Granularity can be relevant to both markets and products:

Market Granularity: Not All Opportunities Are Created Equal

Markets that look identical through a macro lens behave very differently up close. Growth-driven leaders break markets down by:

  • Micro-segments (e.g., niche customer personas with specific use cases)

  • Geographic pockets (cities/regions with faster adoption or lower CAC)

  • Buying contexts (where urgency, budget, or pain points differ)

When you zoom in, you often find that:

  • 10–20% of segments drive the majority of profitable expansion

  • Growth stall points are segment-specific, not company-wide

  • Hidden niches grow faster than the “core market”

Granularity prevents the classic trap of “average thinking,” which masks where real upside lives.

Product Granularity: The Feature-Level Growth Engine

Companies that scale efficiently understand which specific features or value moments generate engagement, retention, and willingness to pay.

You can ask:

  • Which features correlate with long-term retention?

  • Which ones attract the highest-value customers?

  • Which ones are costly to maintain but add little value?

Often, a small set of “hero features” drive disproportionate business impact. Identifying them early allows teams to:

  • Increase focus and investment on what actually moves the needle

  • De-prioritize or sunset features that dilute product clarity

  • Align engineering and GTM around the true value engine

Growth accelerates when product investment becomes selective rather than democratic.

Growth isn’t one big number. It’s the sum of hundreds of small ones.
Manage those, and the top line takes care of itself.

Curiosity: The underrated business skill

When we think about qualities that drive business success, we often list strategy, discipline, or vision. Yet there’s a quieter trait that can be just as powerful: curiosity. The simple habit of asking questions, exploring ideas, and seeking to understand can unlock opportunities others overlook.

Curiosity fuels innovation. It pushes us to look beyond what’s working today and imagine what might work better tomorrow. It helps leaders connect dots across industries, uncover customer needs, and inspire teams. Perhaps most importantly, curiosity keeps us adaptable—an essential skill in a world where industries are disrupted overnight.

Some of the most groundbreaking business moves began with a curious question. For example, Steve Jobs once wondered why computers couldn’t be both powerful and beautiful. That curiosity led to design choices that made Apple products stand out in a crowded market. But the lesson isn’t about Apple—it’s about how a leader’s willingness to explore unconventional questions can shift an entire industry.

If you want to harness curiosity as a superpower, you can start by:

  • Making space in your calendar for exploration, not just execution.

  • Asking “why?” and “what if?” more often.

  • Exposing yourself to new industries, ideas, and disciplines—even if they don’t seem immediately relevant.

In an era where data and automation are everywhere, curiosity is one of the few traits that remains uniquely human. Leaders who cultivate it don’t just keep up with change—they create it.

Building confidence in decisions

One of the first thinks a had to learn in my first CFO job was to make decisions and build confidence in my choices. . Prior to this posistion a had mainly worked as a management consultant and financial analyst, doing quantitative and qualitative analysises providing other the nessessary material to do proper decisions.

There is thing that is paramount in having confidence in choices and that is overcoming doubt. Two factors are important in oercomung doubt, namely trusting the process and avoiding perfectionism:

Trust Your Process: A well-considered decision-making process reduces second-guessing. Lean on frameworks or tools to validate your choices.

Avoid Perfectionism: Recognize that no decision is without risk or downside. Focus on making the best possible choice with the available information.

Fact-Based Decision Making

Fact-based decision-making is exactly what it sounds like — a process of making decisions based on objective, verifiable data and evidence rather than subjective opinions, assumptions, or gut feelings. This approach helps ensure that decisions are rooted in reality, increasing the likelihood of achieving desired outcomes.

To integrate fact-based decision-making effectively, start by fostering a data-driven culture. Encourage employees to value and use data in their daily tasks. Invest in training and tools that make data collection and analysis accessible and straightforward.

Leadership plays a crucial role in setting the tone. When leaders model fact-based decision-making, it cascades throughout the organization, creating a mindset where evidence is valued over assumptions.

The rule of 40

Investors and executives alike are often faced with a fundamental question: should a company prioritize growth, or should it focus on profitability? The Rule of 40 offers a simple yet powerful framework to evaluate a company's performance in this trade-off.

The Rule of 40 states that the sum of a company’s growth rate and profit margin should equal or exceed 40%. This metric is particularly relevant for SaaS companies but has been applied more broadly in the tech sector.

  • Growth Rate: Typically measured as year-over-year (YoY) revenue growth. This indicates how quickly the company is expanding its top line.

  • Profit Margin: Commonly calculated using operating margin or EBITDA margin (Earnings Before Interest, Taxes, Depreciation, and Amortization). This reflects the efficiency and profitability of the company’s operations.

For example, if a SaaS company has a 25% YoY growth rate and a 15% profit margin, the Rule of 40 is satisfied because 25% + 15% = 40%.

The Rule of 40 is a helpful benchmark for evaluating the health of a SaaS business. Here’s why:

  1. Balancing Growth and Profitability: • High growth often comes at the expense of profitability, as companies invest heavily in customer acquisition, product development, and scaling operations. • Conversely, high profitability with low growth may indicate a lack of innovation or competitive positioning.

    The Rule of 40 provides a way to balance these two critical dimensions.

  2. Investor Confidence: Investors use this rule to gauge whether a company is effectively managing its resources to drive sustainable value creation. Falling below the 40% threshold may signal inefficiency or stagnation.

  3. Simple and Scalable: The metric is easy to calculate and can be applied consistently across companies, making it a popular tool for benchmarking within the SaaS industry.

Strategic roadmaps

A strategic roadmap is a visual representation of an organization’s priorities and milestones over a defined period, typically spanning one to five years. Unlike detailed project plans, roadmaps focus on the “big picture,” outlining key objectives and the steps required to achieve them. They are designed to communicate strategy, foster alignment, and ensure that everyone in the organization understands the direction and priorities.

Key Components of a Strategic Roadmap

  1. Vision and Goals: The starting point of any roadmap is a clear articulation of the organization’s vision and long-term goals. These provide the foundation for defining priorities and measuring success.

  2. Initiatives and Milestones: Break down the vision into specific initiatives, projects, or programs. Milestones help track progress and maintain momentum.

  3. Timeframes: A roadmap should include a timeline to indicate when key initiatives and milestones will be achieved. This provides a sense of urgency and helps prioritize activities.

  4. Resources and Dependencies: Highlight the resources required to execute the roadmap and identify dependencies that could impact progress.

  5. Metrics and KPIs: Define clear metrics to measure success and track progress against the roadmap’s objectives.

Roadmap example

Strategic roadmaps are invaluable tools for navigating the complexities of organizational planning and execution. They provide a structured approach to achieving long-term goals while maintaining flexibility to adapt to change. By clearly articulating priorities, aligning stakeholders, and tracking progress, roadmaps enable organizations to turn vision into reality. Whether you’re a startup charting your growth path or an established company pursuing transformation, a well-designed strategic roadmap is your compass to success.

Strategic thinking

Strategic thinking is the process of analyzing and evaluating complex situations or challenges to identify opportunities, anticipate potential obstacles, and make decisions that align with long-term goals and objectives.

"The Six Disciplines of Strategic Thinking: Leading Your Organization into the Future" by Michael D. Watkins, Professor of Leadership and Organizational Change at the International Institute for Management Development in Switzerland, is a comprehensive guide that outlines six essential disciplines to enhance strategic thinking and leadership effectiveness. These disciplines are designed to help leaders navigate complex business environments, anticipate challenges, and seize opportunities.

1. Pattern Recognition: This discipline involves identifying significant trends and signals within complex environments. By recognizing patterns, leaders can anticipate potential threats and opportunities, enabling proactive decision-making. Developing mental models of the business domain and learning from both successes and failures are crucial for improving pattern recognition.

2. Systems Analysis: Systems analysis entails understanding how different components of a business environment interact. By constructing mental models that illustrate these interactions, leaders can comprehend the internal dynamics and external influences affecting their organizations. This holistic perspective allows for better anticipation of changes and informed strategic decisions.

3. Mental Agility: Mental agility is the capacity to rapidly absorb new information, shift perspectives, and adapt strategies in response to evolving circumstances. It involves analyzing situations from multiple levels and anticipating the actions of various stakeholders. This flexibility enables leaders to navigate uncertainty and maintain strategic momentum.

4. Structured Problem-Solving: This discipline emphasizes a methodical approach to addressing complex organizational challenges. It involves defining roles, framing problems accurately, exploring potential solutions, making informed decisions, and committing to a course of action. A structured process ensures thorough analysis and effective resolution of issues.

5. Visioning: Visioning entails creating a compelling and aspirational picture of the organization's future. A well-articulated vision aligns teams toward common goals and provides direction for strategic efforts. Effective visioning requires forward-looking exercises, engaging with the team, and simplifying communication to ensure clarity and alignment.

6. Political Savvy: Navigating the intricate dynamics of power and influence within an organization is crucial for successful strategy implementation. Political savvy involves understanding stakeholder motivations, building alliances, and effectively influencing key decision-makers. Emotional intelligence and empathy are key components of this discipline.



By mastering these six disciplines, leaders can effectively navigate the complexities of the modern business world, anticipate challenges, seize opportunities, and guide their organizations toward sustained success.

Synergies

Synergy effects describe the phenomenon where the combined value of two entities is greater than the sum of their individual values. This concept is commonly associated with mergers and acquisitions (M&A) but can also apply to other forms of collaboration, such as joint ventures or strategic alliances.  

Synergy effects create value for companies in several ways:  

  1. Cost savings: Combining operations can eliminate redundancies, streamline processes, and leverage economies of scale, resulting in significant cost reductions. For example, merging two companies might allow them to consolidate their administrative functions, reduce their workforce, or negotiate better deals with suppliers.  

  2. Revenue enhancement: Access to new markets, expanded product offerings, and cross-selling opportunities can boost revenue generation.

    For instance, a merger might allow a company to sell its products to a wider customer base or offer new products that complement its existing offerings.  

  3. Improved efficiency: Combining complementary resources and expertise can lead to increased efficiency and productivity. For example, two companies might have complementary technologies or know-how that can be combined to create a more efficient production process.  

  4. Enhanced innovation: Bringing together diverse perspectives and knowledge can foster innovation and the development of new products or services. A merger might bring together talented employees from different backgrounds, leading to new ideas and innovations.  

  5. Competitive advantage: Synergies can create a stronger and more competitive entity with increased market share and bargaining power. For example, a merger might allow two companies to become the dominant player in their industry, giving them more leverage over suppliers and customers.  

The value of synergy effects is typically quantified through financial analysis, such as calculating the present value of expected cost savings and revenue increases. This valuation plays a crucial role in determining the deal price and assessing the potential return on investment for the acquiring company.  

However, it's important to note that synergy effects are not guaranteed, and realizing their full potential requires careful planning and execution. Challenges such as cultural integration, operational complexities, and unforeseen market conditions can hinder the achievement of anticipated synergies.  

Financial strategy

As a CFO I always strive towards spending most of my time and energy on strategic issues and create and execute the financial strategy for the company I work for.v A financial strategy is a comprehensive plan that outlines how an organization, individual, or entity will manage its financial resources to achieve specific goals and objectives. It involves decision-making processes, policies, and actions that guide the allocation, investment, and management of funds to maximize value, ensure sustainability, and mitigate risks. These are the main componens of a company´s financial strategy:

  1. Goal Setting

    • Defining short-term, medium-term, and long-term financial objectives, such as profitability, growth, stability, or debt reduction.

  2. Planning, Develop Roadmap and Forecasting

    • Developing plans to allocate resources effectively and forecasting future income, expenses, and cash flows to anticipate financial needs.

  3. Revenue Generation

    • Identifying and optimizing sources of income, such as sales, investments, or funding.

  4. Cost Management

    • Controlling and reducing expenses to improve efficiency and profitability.

  5. Investment Planning

    • Strategically allocating resources to investments that align with the goals and provide optimal returns.

  6. Capital Structure

    • Deciding on the mix of debt and equity financing to support operations and growth.

  7. Risk Management

    • Identifying financial risks (e.g., market volatility, credit risks) and implementing measures to mitigate their impact.

  8. Cash Flow Management

    • Ensuring adequate liquidity to meet operational needs, pay obligations, and seize opportunities.

  9. Performance Monitoring

    • Tracking financial metrics and key performance indicators (KPIs) to evaluate the success of the strategy and adjust as needed.

  10. Compliance and Governance

Financial strategies are dynamic and should adapt to changing circumstances, such as market conditions, competitive landscapes, and internal priorities.

Strategic rationale for M&A

All companies I have worked for has had aergers and acquisitions (M&A) on the agenda, either as acquiring company or as potential target. M&A activity is pursued by companies to achieve strategic, financial, or operational objectives. For strategic objectives, the following rationale can be relevant:

  1. Market Expansion: Acquiring a company to enter new geographic markets or customer segments.

  2. Product or Service Diversification: Adding new products, services, or technologies to reduce reliance on a single revenue stream.

  3. Competitive Advantage: Gaining a stronger position in the market by eliminating competitors or consolidating fragmented industries.

  4. Vertical Integration: Acquiring suppliers (upstream) or distributors (downstream) to streamline operations and reduce costs.

Of cource M&A is very complicated including substantal risk, costs and cultural differences.

Supply chain innovation

Supply chain innovation is the process of implementing new and improved strategies, technologies, processes, and practices within the supply chain to enhance efficiency, reduce costs, mitigate risks, and improve overall performance. It involves a continuous pursuit of creative and efficient ways to optimize every aspect of the supply chain, from sourcing and production to distribution and delivery. This often involves embracing emerging technologies like blockchain, IoT, and AI to enhance visibility, traceability, and decision-making.

Some key aspects of supply chain innovation include:

  • Digitalization: Leveraging technologies like AI, machine learning, and IoT to automate processes, improve visibility, and gain insights into data.

  • Sustainability: Adopting eco-friendly practices, reducing carbon emissions, and minimizing waste throughout the supply chain.

  • Resilience: Building flexibility and adaptability into the supply chain to withstand disruptions and uncertainties.

  • Collaboration: Fostering strong relationships with suppliers, partners, and customers to improve communication and coordination.

  • Customer-centricity: Focusing on meeting the evolving needs and expectations of customers, such as faster delivery times and personalized experiences

The ulimate goal is to create a supply chain that is both robuste and cost effective.

The pyramide principle - logic and structure in thinking and writing

After working 10 years in management consulting., I use the Pyramide Principle a lot. The Pyramid Principle is a structured approach to communication, often used for writing and presentations, developed by Barbara Minto at McKinsey & Company. It emphasizes presenting ideas in a top-down, pyramid-like structure, starting with the main point or recommendation and then supporting it with logically grouped, detailed arguments and evidence.

Key Components of the Pyramid Principle:

  1. Start with the main message: Begin with a concise, compelling summary of your central point or recommendation. This captures the reader's or audience’s attention and establishes a clear direction.

  2. Group supporting ideas logically: Organize supporting points into groups that address different aspects of the main message. Each group should have a clear theme and contribute to explaining or proving the main point.

  3. Provide supporting evidence: Within each group, include specific details, data, or examples that reinforce your supporting ideas. This gives depth to each group and justifies why it contributes to the main message.

  4. Follow a logical order (MECE): The Pyramid Principle emphasizes being MECE (Mutually Exclusive, Collectively Exhaustive). This means:

    • Mutually Exclusive: Each point should be distinct and non-overlapping.

    • Collectively Exhaustive: The points should collectively cover all relevant aspects of the main message.

This principle can be used in solving all kinds of business problems, including increasing revenues, reducing costs, improveing support functions, attracting talent etc.

Here is a video explaining the concept:

Strategy - a value creation approach

In business, fall is often the time to make plans for next year, often including adjusting or coming up with new strategies.

Few business concepts has a variation different connotations than strategy. From meaning a small plan to overcome a tiny obstacle or problem to creating a comprehensive guide for doing business. Strategy is about looking forward seeing the future and planning for it.

Startegy, at its best, is simply a plan to create value. Here is short, informative HBR-video explaining this value creation concept:

The starting point is how much and which value the company creates for its customers, employees and suppliers. Strategy then is for example, making working for the company more attractive through imporoved working conditions or more interesting tasks, increasing the employee value. Increasing the product quality for example, will increase customer value and hence willingness to pay for the company’s products and services.

Strategy vs plans: Understanding the key differences

Autumn is often a period where businesses review their strategies related to a new business year coming up. Or is it really their strategies they are reviewing?

In business and life, strategy and plans are often used interchangeably, but they serve distinct purposes.

  • Strategy is the big picture. It defines the long-term vision and overarching goals. It's about making decisions on where to focus your efforts, understanding the competitive landscape, and identifying how to achieve sustainable success. Strategies guide the "why" and "what" behind your actions.

  • Plans, on the other hand, are the step-by-step details. They outline the specific actions, timelines, and resources required to implement the strategy. Plans answer the "how" and "when" to execute the strategic vision.

In short, a strategy is the "destination," while a plan is the "roadmap" to get there. Both are essential, but knowing the difference ensures clarity and focus on achieving your goals.

As Steve Jobs once put it: “Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”

Investment decisions

We've all been there. Worked our way through Excel sheet after Excel sheet with various assumptions and assessments of an investment decision. Such analyzes are, to put it mildly, not an exact science and the decision itself is very often driven by prejudice and bias. I have even experienced working with an investment analysis for a large Norwegian company that was to invest in a new, expensive digital platform, where the mandate was that the investment decision had already been made and that it should now only be considered home. Businesses make investments mainly based on the following goals: Increased business income: buy other businesses, invest in product development, invest in marketing, buy a customer base (SaaS). Increased efficiency/reduced costs: Invest in machinery and equipment, invest in efficiency projects, R&D. Increased quality: invest in increased quality in products, services, production, systems and organisation. Reduced risk: invest in HSE, management systems, control systems Sustainability: invest in measures that make the business more sustainable, such as reduced emissions and waste. This contributes to both improved reputation and sustainability in general