Business Briefing: Strategy Vs. Tactics from a Venture Capitalist

Keywords: Venture Capital, Entrepreneurship, Business Strategy, Tactics, People
Source: Harvard Business Review
Link: Read the full article on HBR.org
Author: Arthur Rock
Published: November 1987
Est. Read Time (Original): ~30 minutes

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The Core Idea

Legendary venture capitalist Arthur Rock argues that the critical determinant of a startup's success is not its strategy, but its tactics, the day-to-day execution driven by great management. He famously asserts that "good ideas and good products are a dime a dozen. Good execution and good management, in a word, good people, are rare." In evaluating a new venture, Rock prioritizes the founders' résumés and character over the financial projections. His core thesis is that a great team can pivot from a bad strategy, but even the most brilliant strategy is worthless in the hands of a team that cannot execute.

Why It Matters for Business Today

In an era often fixated on visionary ideas and disruptive business models, Rock's unwavering focus on the fundamentals of people and execution is a crucial grounding force.

• Execution is the Only Differentiator: Rock's core argument is timeless. A great idea is not a competitive advantage; the ability to execute on that idea is. This is a vital lesson for entrepreneurs who believe their idea alone is enough to win, and a critical lens for investors to look past a polished business plan to the quality of the team.

• The Primacy of Character and Self-Honesty: Rock's evaluation process is a masterclass in assessing leadership potential. He looks for founders who are brutally honest with themselves, who can face hard truths without delusion, and who understand their own limitations. This emphasis on character over charisma is a powerful predictor of a founder's ability to navigate the inevitable crises of a startup.

• Strategy is Easy, Tactics are Hard: This is the article's most famous line and its most important lesson. Crafting a high-level strategy is an intellectual exercise. The real work is in the "tactics": the relentless, month-to-month decisions about hiring, finance, and operations that turn a strategy into a going concern. Rock's genius was in recognizing that a founder's ability to manage these details was the best indicator of future success.

The Strategic Question for Leaders

Arthur Rock argues that the most disastrous entrepreneurial trait is a lack of brutal self-honesty. What systems or personal disciplines do you use to ensure you are not deluding yourself, to confront the unvarnished truth about how well, or how poorly, things are really going in your venture?

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