timeless PinkLetters, translated from our Spanish Substack for English-speaking readers.
Intense Focus: The Secret Behind Every Successful Strategy
In the fast-paced world of startups, the chaos of daily operations can make us forget the difference between tactics and strategy.
While tactics are reactive actions to solve immediate problems — launching a campaign, negotiating with a supplier — strategy is the compass that guides a company toward long-term goals. The key to business success lies in mastering the art of making coherent, deeply interconnected decisions.
The Nature of a Good Strategy
An effective strategy is like a well-played game of chess. Every move reinforces the next and serves a clear purpose within the overall plan. A good strategy is a system of decisions designed to reach a specific goal, encompassing organizational structure, resource allocation, company culture, and positioning.
When every action aligns with the broader goal, strategy creates synergy that optimizes performance. Its coherence and complexity make it hard to replicate. Any startup can launch a marketing campaign or tweak a product — but a well-defined strategy is what truly differentiates successful companies.
Maintaining this coherence over time separates leaders from the rest. It requires strong leadership, perseverance, and above all, an intense focus that helps resist distractions and temptations along the way.
Summary:A good strategy is built on coherent, interrelated decisions that form an integrated system guiding the company long-term. Sustaining that coherence over time is what makes startups stand out and hard to replicate.
The Art of Saying No
Building a startup isn’t easy, and it’s tempting to chase new opportunities all the time — add that feature a few customers requested, or explore a new market. As they say, the grass is always greener on the other side of the fence.
But counterfactuals aren’t real. Time moves forward, and we must learn to live with our decisions — especially strategic ones that shouldn’t be constantly revisited.
Sometimes changing strategy is necessary, but it should never be done lightly. It must be deliberate and fully aware of its consequences, which are often hard to reverse.That’s why clarity of mind is essential: to discern whether the problem lies in the strategy or merely in the tactics we’re using.
An intense strategic focus brings the clarity needed to build a unique, differentiated company — one capable not only of capturing value but also of retaining it over time.
“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” — Bruce Lee
It’s better to master one skill than to scatter your attention across many without excelling at any.Many startups fail because they try to do too much — or act out of fear of competitors. As Y Combinator says: Ignore your competitors; your startup is more likely to commit suicide than be murdered.
Focus relentlessly on a single direction, and persist. That persistence is often the real competitive advantage.
Summary:Saying “no” is essential to maintaining strategic coherence. Changing course must be a conscious, deliberate decision — not an impulsive reaction. Clear focus and persistence in a defined direction greatly increase the odds of success.
The Trap of Local Optimization
A solid, consistent strategy increases your chances of evolving from startup to great company. But executing it is hard — partly because deviations often yield short-term improvements that move you away from the long-term goal.
The problem is that these immediate wins are visible and measurable, while their long-term costs are hidden. Our natural bias toward instant gratification leads us to make decisions based on what we can see now, not what will matter later.
Some examples:
- Accepting a government contract when your target market is SMBs might bring quick revenue, but diverts your focus from your core strategy.
- Hiring a top-performing salesperson who doesn’t fit the culture can boost short-term results while damaging cohesion.
- Cutting R&D investment to improve EBITDA may seem prudent but weakens future competitiveness.
Maintaining focus on long-term goals — and resisting short-term gains that pull you off course — is vital for sustainable growth.
Summary:Local optimization may feel beneficial in the short term but often steers the company away from its strategic objective. Long-term growth demands resisting short-term temptations.
Case Study: IKEA
Founded in 1943 as an office supply business, IKEA began selling furniture in 1948. The showroom model with self-service didn’t appear until 1958, when the first physical store opened in Älmhult, Sweden — a turning point in the company’s history.
The showroom allowed customers to experience furniture in real spaces, while self-service reduced logistics costs and simplified the buying process. This approach remains central to IKEA’s strategy today.
1- Focus on Core Business and Competitive AdvantagesIKEA focuses on offering well-designed furniture at low cost, outsourcing assembly to maintain a lean structure. This allows it to concentrate on its core strengths: modular design, supply optimization, and in-store experience.
2- Cost Reduction and ScalabilityThe “DIY” model is key. By outsourcing assembly, IKEA minimizes operational costs and avoids fixed expenses for specialized labor and tools.
3- Flexibility and Risk MitigationOutsourcing lets IKEA adjust service offerings with demand, maintaining agility during high-demand seasons.
4- Low Prices as a Competitive BarrierIncluding assembly as a standard feature would raise costs and reduce margins. Keeping it optional sustains affordability and competitiveness.
5- A Value Proposition Aligned with DIY CultureIKEA’s brand is rooted in customer self-sufficiency. Making assembly a default service would undermine its positioning as an accessible, empowering brand.
Conclusion: Although IKEA could offer in-house assembly, doing so would increase costs and complexity — diverging from its cost-leadership strategy. By outsourcing, IKEA maintains