People often search for the reasons behind a company’s growth or demise—blaming everything from product quality to leadership changes or competitor actions. But most of the time, no one clearly remembers why the business was started in the first place or what it was supposed to become. Yet strategy can be a tool that ensures sustainable growth. There are several common misconceptions that cause companies to see strategy as useless.
Myth #1: We don’t need a strategy
It’s easiest to grow fast from scratch. Often, a new business’s “strategy” is at best a vague vision of the same company with a bigger market share. Frequently, there’s no actual document—maybe just ideas in the founder’s head, or a printout tucked in a safe next to the company charter.
A company’s strategy is not a gold-plated monolith. It’s a tool that, when used correctly, helps a business not just expand but develop. More contracts and more staff don’t necessarily mean the business is healthy.
A powerful example of strategy in action is General Electric under legendary CEO Jack Welch. He formulated a set of questions to understand the company’s position and potential, which then formed the basis of a strategy that led GE to record profits. Welch’s decisions were often unpopular, but each one aligned with the strategy and drove the company toward success.
This is especially relevant in fast-growing markets with high demand. Companies must choose which contracts to pursue and which to turn down. The more options there are, the stricter the filter must be.
At this stage, it’s vital to ask: What does a “good contract” mean for your company? That’s where strategy becomes a compass. When you have two contracts on the table and only one aligns with your defined goals, the choice becomes clear. And yes—you must be willing to say no. But that’s a topic for another column.
Myth #2: Strategy = empty words
This misconception is often the result of the first myth—and of poor consulting. Strategy is not about goals, ambitions, or desires. It must reflect the real state of the market, current trends, major competitors, and your own view of your offerings and place in the market.
You need to clearly define growth drivers, risks, and expansion paths—and determine whether you have the resources to grow at the pace you envision. A business with 50 people and $50 million in revenue is fundamentally different from one with $600 million and 400 employees.
Think of it this way: you’re driving a car from point A to B over 1,000 km. That’s doable. But if there’s an ocean in between, you’ll need a different vehicle—a plane. Controlled growth isn’t about new hires or contracts—it’s about building a structure that can bear the weight of scaling.
Some leaders hire top managers to build that structure. We tried that and realized it didn’t work for us. It took too long to explain our company’s philosophy and why standard approaches wouldn’t apply.
This is especially true for startups and agencies, where effectiveness depends on flexibility and personal commitment. If that sounds like your company, consider how your current team can grow—and let them help build the plane.
At Redmadrobot, we experienced two major transformations. In 2013, with a small team, we created our first strategy and began to consistently follow it, investing in development. The second turning point was in 2016, when we revamped our management system. Since 2013, the company has doubled in size every year. Growth drivers changed, and the “robot” evolved.
Myth #3: A strategy lasts 5 years
You should work on your strategy every day. That doesn’t mean constantly rewriting it, but regularly reflecting on what changes are needed to build your plane. Ongoing market analysis is crucial. Over time, these reflections lead to decisions—like launching new services or shutting down underperforming projects.
It’s foolish to think that decisions made five years ago will still be right today. A classic case is Nokia. In 2007, it held a 41% market share—more than either Apple or Samsung ever had. But by viewing the market from a leader’s perspective, Nokia failed to spot the shift. The rise of iOS and Android stripped it of its technological and reputational edge, and eventually, it vanished.
Companies that constantly analyze the market and adjust their strategies can survive even massive disruptions. Consider the fate of paging operators. The technology became obsolete, but some companies survived by leveraging their technology and leadership to enter new markets.
Take VessoLink, for example. They kept their executive team and technological know-how, pivoting toward video surveillance systems, integration services, and more.
Of course, you’ll notice when a market dies—and it might seem like strategy had nothing to do with it. But you should also rethink your strategy during periods of growth. If we were still following our five-year-old strategy—serving only large clients with big annual budgets—Redmadrobot would be out of business.
Back when agencies were selling the concept of mobile app development, that model worked. But as companies matured, they developed internal expertise. Now, clients start with small budgets and quick MVPs—they want to validate business ideas, not commit long-term.
Buyers have matured too: internal teams now have product managers, product owners, and Scrum masters. They’re no longer willing to hand over big budgets to agencies. The project development and launch process has changed—agile thinking now drives business development.
If you say, “Come back when you have a big annual budget,” no one will come back. But that used to work.
Just think about what the market looked like five years ago—what your company and competitors knew and could do. Now open your strategy document.
