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The three kinds of leverage that anchor effective strategies

Focusing on a company's unique strengths yields outsized impact, while chasing weaknesses wastes effort; the piece shows how to identify and apply durable differentiated strengths as a strategic moat.

Using a company's strongest abilities creates a large effect from a small effort, while trying to fix every weakness is an operational distraction. The article points to examples like Netflix moving to streaming, Twitter's 140-character limit, and Tesla's combination of performance and safety to illustrate how a single, differentiated strength can drive massive success.

Weaknesses such as downtime or security flaws are necessary to address, but they are not a strategy; they are a baseline requirement. The piece references the old "move fast and break things" motto and shows why that mindset works for scrappy startups but becomes a liability for mature organizations that need to protect their core strengths.

A practical rule is introduced: define a metric and a threshold, then only invest when the metric falls below the threshold. This SLO-style approach prevents over-investing in problems that are already acceptable while ensuring resources flow to genuine gaps.

The article also highlights how business models and supporting tools can amplify strengths. Low-margin digital products, newsletters, or AI-generated drafts can multiply output without proportional cost, turning a modest effort into a powerful engine.

Finally, durable differentiated strengths are described as moats. Technical trade-offs like Heroku's 12-factor app or secret insights such as "people will buy shoes online" create barriers that competitors cannot easily cross, providing a long-term competitive edge.

Source: longform.asmartbear.com
#leadership#strategy#engineering management#technical leadership#leverage#productivity

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