Rich Horwath Keynote Speech on Strategic Thinking

Summary

Rich Horwath, a best-selling author and CEO of the Strategic Thinking Institute, emphasizes the importance of strategic thinking for business growth. He introduces the '3 A's of Strategy': Acumen (insight), Allocation (resource focus), and Action (staying on track). Horwath stresses that new growth stems from innovative thinking and urges businesses to regularly reassess resource allocation and avoid complacency. He also humorously cautions against neglecting strategic plans, advocating for a continuous strategic dialogue rather than an annual event.

Takeaways

• 📚 Rich Horwath is a renowned author and expert in strategy, having assisted thousands of managers worldwide in enhancing their strategic thinking skills.
• 🌟 Strategy should not be a tedious process akin to a long church sermon that induces sleep, but an engaging and insightful activity.
• 🔄 The concept of 'insanity' in business is doing the same things repeatedly while expecting different results, often termed as 'organizational lobotomy'.
• 🚀 Growth is stimulated by new thinking; without fresh ideas, expecting growth is futile, similar to expecting crops without planting seeds.
• 🧠 The '3 A's of Strategy' framework consists of Acumen (insight), Allocation (focusing resources), and Action (staying focused and avoiding distractions).
• 🎯 Acumen is the initial spark of insight that fuels all great strategies, projects, and initiatives.
• 💼 Allocation involves making trade-offs by choosing to focus resources on certain paths and not others, which is crucial for strategic success.
• 🏃‍♂️ Action is about maintaining focus on what's important for the business, rather than getting lost in the urgent but less important tasks.
• 🌱 The importance of pruning and reallocating resources is highlighted, as it allows for new growth and prevents stagnation.
• 📉 Even companies with vast resources like General Motors and Lehman Brothers can fail; it's the strategic allocation of resources that truly matters.
• 🗓️ Strategy is not a one-time event but an ongoing dialogue that should be integrated into daily business practices.
• 📑 The script humorously personifies a strategic plan that feels neglected, emphasizing the need for continuous engagement with strategic plans.

Q & A

Who is Rich Horwath?

Rich Horwath is a New York Times, Wall Street Journal, and USA Today best-selling author on strategy, CEO of the Strategic Thinking Institute, and a former chief strategy officer and professor of strategy.

What has Rich Horwath helped over 50,000 managers from companies like Google, Kraft, and FedEx to develop?

Rich Horwath has helped over 50,000 managers develop their strategic thinking skills.

What is the main message Rich Horwath conveys about strategy in his talk?

Rich Horwath emphasizes that new growth comes from new thinking, and expecting new growth without changing the way of thinking is like expecting different results from the same actions.

What does Rich Horwath define as 'insanity' in business?

Rich Horwath defines business insanity as doing the same things in the same ways year after year and expecting miraculous new growth.

What is the simple framework Rich Horwath developed for strategic thinking?

The simple framework Rich Horwath developed for strategic thinking is called the 'Three A's of Strategy' or the 'Three Disciplines of Strategic Thinking'.

What are the three A's of strategy mentioned by Rich Horwath?

The three A's of strategy are Acumen (insight), Allocation (focusing resources), and Action (staying focused on what's important).

What does Rich Horwath suggest is the number one driver of revenue growth?

Rich Horwath suggests that the number one driver of revenue growth is the reallocation of resources from underperforming initiatives to overperforming ones.

How often should companies reallocate resources according to Rich Horwath?

Rich Horwath suggests that great companies, the ones with the best growth, look at their resources on a monthly or quarterly basis for reallocation.

What does Rich Horwath say about the role of strategy in daily work?

Rich Horwath states that strategy is not an event but a dialogue, and it should be a daily habit rather than an annual two-day pilgrimage.

What is the main issue Rich Horwath identifies with how most people approach strategic planning?

Rich Horwath identifies that most people don't use their strategic plan to drive daily activity, which can make the planning process ineffective.

What does Rich Horwath suggest is the key to successful business strategy?

Rich Horwath suggests that the key to successful business strategy is to think differently, to not just be better but to be different, and to give oneself permission, time, and tools to think strategically.