It is paradoxical. If you stay focused on the key elements of your business, you aren’t looking at new opportunities. That’s one of the reasons that strategy is done by humans, and not by recipes or algorithms. It takes a human to deal with the paradox and complexity.
Business strategy often involves tough decisions. Do you focus on what you know well, and consolidate, build on your core competencies? What if the market changes or technology changes and leaves you behind? But if you constantly move into new areas, constantly pursue new opportunities, you run into the problems of displacement and long-term consistency.
Deal with it. That’s why you are in charge. You make the tough decisions.
Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.
