This Is Strategy

This Is Strategy Plot Summary

Introduction

Time, systems, games, and empathy weave together to create the fabric of strategy. While traditional strategic thinking focuses on positioning and competitive advantage, this philosophy of becoming invites us to see strategy as the elegant path through complex systems—a way of creating the conditions for meaningful change. The challenge lies not in devising the perfect plan, but in understanding how time unfolds, how systems resist change, and how network effects amplify our actions. Strategy requires us to expand our circles—the circle of "us" beyond ourselves and the circle of "now" beyond the immediate moment. By seeing the invisible forces that shape our environment, we can find leverage points where small, persistent actions create cascading effects. From addressing climate change to building personal projects, the key insight remains: we make things better by embracing systems, understanding time, and creating the conditions for change rather than trying to force it. Better is possible, but only when we navigate with awareness of the subtle connections between what we do today and what becomes possible tomorrow.

Chapter 1: Strategy as the Elegant Path Forward Through Complex Systems

Systems are everywhere yet remain largely invisible until they break or resist our efforts to change them. They consist of interconnected nodes—people, organizations, technologies—all operating with their own motivations but creating collective behaviors that persist over time. An elegant strategy doesn't fight against these systems but finds the leverage points where minimal effort produces maximum effect. The metaphor of a river helps us understand systems. A river has a current, a flow that moves persistently in one direction. Paddling upstream requires enormous effort and often yields minimal progress. An elegant strategy doesn't try to build a massive dam against the current—instead, it digs a small channel that redirects the flow in a way that aligns with both the river's natural tendency and our desired direction. When we make it easier for the current to flow where it was already inclined to go, small interventions can lead to dramatic shifts. Systems naturally seek equilibrium and resist disruption. This resistance isn't malicious but emerges from the collective self-interest of each node in the system. When we understand that people make decisions based on status (who's up and who's down) and affiliation (fitting in with their group), we can create conditions where change serves their interests rather than threatening them. The elegant path forward acknowledges these forces and works with them rather than against them. Successful systems persist because they deliver value to their participants. Even systems with harmful side effects continue because they serve the core needs of those with the power to maintain them. The challenge lies in seeing beyond the visible components to understand the invisible forces that keep systems in place—the feedback loops, cultural norms, and status hierarchies that give systems their resilience and power. The elegance in strategy comes from finding paths that require less energy and create less resistance. Like a barefoot runner who glides effortlessly while others struggle, an elegant strategy achieves more with less. It's not about trying harder; it's about finding a better way forward by understanding the systems we operate within. This approach grows more effective over time as network effects multiply our impact and trust in our approach grows. When we understand systems, we can work with them rather than against them. We can identify where small changes might cascade into larger transformations. The elegant path requires empathy for how systems work and how people within them make decisions, turning these insights into strategies that make change possible without requiring heroic effort or perfect circumstances.

Chapter 2: Time as the Invisible Axis: Seeing Beyond the Immediate

We are all time travelers, moving at a constant rate into the future. Yet our perception and understanding of time often remain limited to the immediate moment. Strategic thinking requires expanding our temporal horizon—seeing how today's actions create the conditions for tomorrow's possibilities. Time isn't just a measurement; it's the invisible axis along which all strategies unfold. The seeds you plant today won't grow for weeks or months. This simple gardening truth applies to all meaningful strategies. We live in the present, but we're building for a future that doesn't yet exist. This creates tension: our primitive brains seek immediate rewards and safety, while strategic thinking demands patient investment in uncertain futures. The marshmallow test illustrates this challenge—the ability to delay gratification for greater rewards later is both difficult and essential for strategic success. Most approaches to strategy fail because they collapse time. They focus exclusively on immediate outcomes or dream of distant futures without mapping the path between here and there. Effective strategy expands our "circle of now" to include both yesterday and tomorrow, recognizing that time doesn't happen all at once. The future unfolds step by step, and each step changes the landscape of what's possible next. Time reveals feedback loops that remain invisible in snapshot thinking. When we take action, the system responds—often with delays that mask cause and effect. These delays make it difficult to connect our actions with their consequences, which is why many harmful practices persist despite growing evidence of their downsides. Systems that reward short-term thinking while deferring long-term costs create particularly challenging strategic environments. The insight that "Rome wasn't built in a day" contains a profound truth often overlooked: Rome actually was built in a day—the day they declared "This is Rome." But it wasn't finished in a day. Strategic thinking embraces both the declarative moment of beginning and the patient, persistent work of improvement that follows. We create the conditions for change, then nurture that change as it grows over time. By acknowledging time as the invisible axis of strategy, we gain perspective that transforms our approach. We see that traction matters more than launch, that persistent small actions outperform dramatic gestures, and that what appears to be an overnight success is actually the culmination of thousands of small steps forward. Strategy isn't about predicting the future perfectly—it's about creating the conditions today that make better futures more likely tomorrow.

Chapter 3: Understanding Systems and Their Resistance to Change

Systems don't exist to please us. They evolved to serve purposes that may no longer align with our current needs, yet they persist with remarkable resilience. Every successful system has boundaries, benefits, bystanders, information flows, stability mechanisms, protocols, roles, feedback loops, and side effects. Understanding these elements reveals why systems resist change even when that change would benefit many participants. Systems resist change through several mechanisms. Status quo bias emerges when people coordinate into networks and groups, multiplying individual aversion to certain kinds of change. Sunk costs create emotional attachments to past investments, making it difficult to embrace new approaches. Interoperability concerns arise when systems depend on standardized interfaces and protocols. Status roles benefit those at the top, who work to maintain hierarchies while convincing everyone else that the system offers the best path to advancement. And affiliation—the human desire for community and belonging—maintains existing systems by making deviation socially costly. The persistent nature of systems makes them difficult to transform. Consider how college admissions changed when U.S. News & World Report began ranking schools. Initially informal and based on limited data, these rankings gained influence until universities assigned staff to understand the metrics and game the system. Schools dramatically increased spending on amenities, some were caught cheating on self-reported statistics, and many shifted their focus, curriculum, and grading approaches in response. By publishing a hierarchy, an outsider changed a system that had existed since before the country was established. Systems maintain themselves through feedback loops. Some loops stabilize systems by countering deviations—like a thermostat that turns on heating when temperature drops below a threshold. Other feedback loops amplify changes, creating runaway effects that transform systems—like how social media platforms gain value as more people join, driving exponential growth. Understanding these feedback loops reveals leverage points where small interventions might trigger larger changes. People within systems make decisions based on self-interest, which doesn't necessarily mean selfishness. They consider questions like: Will this get me promoted? What will I tell my boss? Does this fit our standards? Who has power here? Am I authorized to do this? What am I afraid of? Will I profit from this? The answers are driven by links between nodes in the system, creating persistent patterns of behavior that resist disruption. When systems face external pressure to change, they typically respond in predictable ways: first ignoring the pressure, then fighting it, and finally—if those responses fail—adapting to incorporate the change while preserving core structures. This is why truly transformative change often comes not from reforming existing systems but from building alternative systems that make the old ones obsolete.

Chapter 4: Games, Feedback Loops, and Strategic Decision-Making

Every meaningful interaction can be understood as a game. Games have players, rules, scarcity, choices, feedback loops, and outcomes. Calling our strategic challenges "games" isn't trivializing them—it's recognizing patterns that help us navigate complex situations more effectively. Whether seeking medical care, applying for jobs, or addressing climate change, we're engaging in games with multiple players making decisions under uncertainty. Games reveal important truths about strategic thinking: You don't have to enjoy a game for it to be a game. You're playing games whether you realize it or not, and seeing the game helps you play better. The outcome often has little to do with how much you want to win. Everyone sees the game differently. Some games are easy to quit, others last forever. Not all players follow the same rules or have the same goals. No game stays the same for long because playing changes the game. Sometimes the best way to win is helping others succeed. Feedback loops determine how games evolve over time. When the wedding DJ holds a microphone too close to speakers, a horrible screech occurs as sound is amplified in a cycle. Similarly, feedback loops in systems can either amplify changes (positive feedback) or dampen them (negative feedback). The challenge in strategic decision-making is recognizing these loops and working with them rather than against them. The wildcard in every feedback loop is the delay. When consequences arrive immediately—like touching a hot stove—we quickly adjust our behavior. But when feedback is delayed—as with smoking and lung cancer—we may continue harmful actions for years before consequences become apparent. These delays make strategic decision-making particularly challenging, especially in complex systems where multiple interventions overlap before feedback arrives. Different types of games require different strategic approaches. Some games are infinite (played to continue playing) while others are finite (played to win). Some are based on scarcity (only one person can have the resource) while others embrace abundance (value increases through sharing). Games can involve dominance or affiliation, immediate paybacks or forward-looking investments, maintenance or possibility. Recognizing which game you're playing is essential for developing appropriate strategies. The Nash Equilibrium describes optimal play in two-player finite games, but most real-world situations involve complex systems with shifting time frames and different risk profiles. Sometimes maximizing potential wins (Maximax) makes sense, while other situations call for minimizing potential losses (Maximin). Understanding these different decision frameworks helps navigate strategic choices with clarity and purpose. Strategic decision-making requires distinguishing between good decisions and good outcomes. A good decision is based on the best available information at the time, even if circumstances later produce disappointing results. Similarly, poor decisions sometimes yield lucky outcomes. By focusing on decision quality rather than outcome alone, we develop more resilient strategies that improve over time regardless of short-term results.

Chapter 5: Creating the Conditions for Change Through Network Effects

The true power of strategic change emerges not from individual heroics but from network effects—the phenomenon where something becomes more valuable as more people use it. One telephone is worthless, but each additional connected phone increases the value of every phone in the network. While Alexander Graham Bell invented the telephone, his lasting impact came from building the Bell System—a protocol that allowed local networks to connect to the global network. Network effects operate on an exponential curve rather than a linear one. The value of a network increases dramatically as it grows, which is why companies like Facebook, Google, and Amazon have achieved such extraordinary scale and influence. Metcalfe's Law states that the value of a network grows proportionally to the square of the number of users. This mathematical reality creates powerful feedback loops that can transform systems once they reach critical mass. People don't join networks because it's good for you; they join because it's good for them. The key insight for creating conditions for change is recognizing that people will only invite others to join a network if they personally benefit from doing so. Successful movements spread because early adopters gain status by bringing others along—not because they're altruistically supporting your cause. The adoption curve for any innovation follows a predictable pattern. It begins with innovators (approximately 2.5% of any population) who embrace new ideas quickly, followed by early adopters (13.5%) who are opinion leaders in their communities. The early majority (34%) are deliberate in their choices but adopt before the average person, while the late majority (34%) approach new ideas with skepticism. Finally, laggards (16%) are the last to change. Between early adopters and the early majority lies what Geoffrey Moore calls "the chasm"—a gap that many innovations fail to cross. This chasm exists because early adopters embrace change for its own sake, while the early majority needs practical value and social proof. Crossing this chasm requires creating scaffolding—support structures that make adoption easier and less risky for those who aren't naturally inclined to go first. The five steps to widespread change begin with finding a nucleus—a core group sharing a desire for something better. Offer this group connection, status, and forward motion. Next, maximize chances for small wins that create cohesion and evidence of progress. Third, give the nucleus language to talk about the work in ways that resonate with others. Fourth, create conditions for another win to maintain momentum. Finally, establish new status roles and feedback loops to codify the emerging system. Strategic change happens when we create conditions where existing systems embrace new approaches because they serve the self-interest of participants. Rather than fighting against status quo bias, sunk costs, and resistance to substitution, effective strategy harnesses these forces by making change the path of least resistance. When we understand network effects and adoption patterns, we can design interventions that spread organically rather than requiring constant effort to sustain.

Chapter 6: The Power of Smallest Viable Audiences and Persistent Action

True strategic impact rarely comes from trying to please everyone at once. The concept of "everyone" is elusive and attempting to reach everyone simultaneously typically results in connecting with no one effectively. Instead, strategic change begins with the smallest viable audience—the minimum number of people needed to create meaningful traction and feedback. The first step is finding ten people who trust you, respect you, need you, or listen to you. These ten people must need or want what you have to offer. If they love it, they'll each find more people (perhaps ten more, or a hundred, or a thousand). If they don't love it, you need either a new product or more insight about the ten people you've chosen. Begin again. This approach fundamentally changes the timing and posture of strategic work. Small but dedicated audiences provide several advantages. They offer immediate, high-quality feedback that improves your work. They create the conditions for word-of-mouth marketing—the most powerful form of promotion. They establish a foundation for future growth. And perhaps most importantly, they force you to focus on making something remarkable enough that these early adopters can't help but share it with others. The path forward isn't about "getting the word out" through marketing hype or hustle. Effective strategy focuses on creating traction through genuine value and persistent action. Traction means progress—real engagement from people who benefit from what you offer and choose to bring others along. This happens not in a dramatic launch but through gradual building that eventually creates momentum. Thrashing at the start of a project—exploring options and refining direction—costs far less than changing course near the end. Yet most organizations do the opposite, waiting until launch approaches before senior leaders engage deeply with strategic decisions. The discipline of strategy requires front-loading difficult conversations and decisions, creating clarity before significant resources are committed. Every "yes" requires many "no's." Opportunity cost is real, and time remains our scarcest resource. Strategic clarity means being willing to walk away from all the paths not taken. Many avoid choosing a strategy because they're uncomfortable abandoning alternative possibilities, but without these difficult choices, no path receives sufficient resources to succeed. Traction is underrated and overlooked in our culture's fixation on dramatic launches and overnight success. Edward Lorenz published a scientific paper in 1963 that received minimal attention for decades before eventually becoming the foundation of chaos theory, cited in thousands of subsequent works. Was his paper a failure when published? When did it become a success? The paper itself never changed—only its traction in the scientific community did. Strategic success requires patience and persistence. The smallest viable audience approach recognizes that change happens node by node, person by person, gradually building momentum until it becomes irresistible. By focusing on creating genuine value for specific people rather than chasing mass approval, we establish the conditions for lasting impact through traction and compounding network effects.

Chapter 7: Climate Crisis: A Strategic Approach to Systemic Change

The climate crisis represents the most urgent systems challenge of our time, requiring strategic approaches that acknowledge both the scale of the problem and the systemic forces maintaining the status quo. Since 1900, the industrialized world has been turning cheap oil into cheap power without regard for side effects, creating systems of convenience, comfort, and power that few are willing to give up. This isn't a technical problem; it's a systems problem requiring a systems solution. When examining the climate crisis through a strategic lens, we must recognize that systems problems demand systems solutions. The fundamental issue is a classic economic problem: externalities corrupt the workings of a free market. Each of us subsidizes the price of carbon, whether we use it or not. Jet fuel, beef, and other carbon-intensive products are sold too cheaply because their true costs are externalized to everyone on the planet and their descendants. Traditional approaches to addressing the climate crisis often fail because they don't address the underlying system dynamics. Individual behavior change (using less carbon) is necessary but insufficient given the scale of the challenge. Technological innovation alone won't solve the problem fast enough. And moral appeals for sacrifice face resistance from systems optimized for short-term benefits over long-term sustainability. A strategic approach focuses on creating the conditions for systemic change by aligning incentives across the system. One promising strategy involves charging a fair price for carbon through a surcharge that eliminates current subsidies, with proceeds distributed equally to all citizens as a monthly dividend. This approach would harness market forces to drive change rather than fighting against them. Products embodying carbon would gradually increase to their fair price, while alternatives would become relatively cheaper. This strategy works because it connects to insatiable desires already driving the system. Those with an insatiable desire for profit would quickly find ways to sell items using less carbon, gaining market share from competitors. Consumers seeking stability and savings would choose lower-carbon items because it saves them money immediately. The dividend payments would create a feedback loop, rewarding those who pay attention to embodied carbon in their purchases. What makes this approach strategically elegant is that it doesn't require people to change what they want—only how they get it. It acknowledges that systems don't change through individual heroics or moral appeals, but through persistent community action that shifts incentives and creates new feedback loops. It focuses not on convincing everyone to care about climate change, but on creating conditions where self-interest aligns with reduced carbon usage. The path forward requires organizing persistent community action. Finding others, telling others, organizing others—and doing it again tomorrow. Individual actions like installing heat pumps or stopping leaf blower usage matter, but not enough. What changes systems is coordinated, collective pressure maintained over time. The technology and insights needed to address the climate crisis already exist—what's missing is the strategic approach to get the market to fix what the market broke.

Summary

Strategy emerges as a philosophy of becoming—a way to navigate the complex interplay between systems, time, and human behavior. Rather than seeing strategy as a static plan or competitive positioning, this approach embraces the dynamic nature of change across time. The elegant path forward recognizes that we don't simply work within systems; we dance with them, finding leverage points where small actions create cascading effects through network effects and feedback loops. The future belongs to those who can expand their circles—seeing beyond themselves to include others, and beyond the immediate moment to embrace time as the invisible axis of change. When we approach strategy with this mindset, we discover that making things better doesn't require perfect predictions or heroic efforts. It demands empathy for how systems work, patience with how time unfolds, and persistence in creating the conditions where change can emerge. Whether addressing personal projects or global challenges like climate change, this philosophy offers a path forward that aligns with how the world actually works rather than how we wish it would. Better is possible, but only when we embrace becoming rather than forcing, and when we recognize that the seeds we plant today create the forests of tomorrow.

About Author

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Seth Godin

Seth W. Godin, also known as "F. X. Nine", is an American author and a former dot com business executive.

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