Published on: July 21, 2026 at 7:41 pm
Some failures in strategic planning and goal setting are leaders’ fault, while others can be chalked up to chaos.
Academy of Management Scholar Thomas Hutzschenreuter of the Technical University of Munich, author of Sharper! Charting Your Course with Seven Strategy Principles, said that people often underestimate the extent to which uncertainty and noise play a role in outcomes.
“Because strategy operates in the future, and the future is uncertain by definition—leaders often overestimate the degree of control they have over outcomes,” Hutzschenreuter said. “They can control decisions and actions, but they cannot control competitors, customers, technological shifts, economic cycles, or unexpected events.
“Between actions and outcomes lies what I call noise—the practical implication is humility,” he said. “Strategy should not be viewed as a prediction but as a disciplined attempt to navigate uncertainty. The best strategists continuously distinguish between what they know, what they assume, and what they simply do not know.”
In a nutshell: “The future cannot be controlled; strategy is the disciplined management of uncertainty.”
Muhammad Ali’s boxing philosophy: “Float like a butterfly, sting like a bee”
Muhammad Ali understood something that many organizations struggle to master, Hutzschenreuter noted: Success requires both flexibility and determination.
“‘Float like a butterfly’ represents adaptability—companies must remain agile, learn continuously, and adjust to changing circumstances,” Hutzschenreuter said. “‘Sting like a bee’ represents commitment—at some point, organizations must act decisively and pursue their objectives with conviction.
“Many companies fail because they lean too heavily toward one side,” he said. “They either become rigid and unable to adapt, or they become so flexible that they lose direction. Great strategy combines movement with purpose.”
To sum it up: “The best strategies combine adaptability in execution with determination in purpose.”
The principle of scope
Scope is fundamentally about deciding where to compete and where not to compete, Hutzschenreuter said. Organizations often assume that growth is always desirable, yet every new activity adds complexity, consumes resources, and creates managerial challenges.
“Expansion should strengthen the organization’s overall position, not merely increase its size,” Hutzschenreuter said. “At the same time, leaders should not cut indiscriminately—removing capabilities that contribute to long-term competitiveness can weaken the organization more than excess costs ever did.
“The key is disciplined selectivity: Expand where you can create value and sustain an advantage,” he said. “Exit activities where you face persistent disadvantages. Strategy is as much about what you decline to do as what you choose to do.”
Hutzschenreuter concluded: “Scope is not about doing more or less—it is about doing the right things and stopping the wrong ones.”
