How to Think Strategically



5

Managing the invisible hand

THE FIRST STEP OF THE STRATEGY DEVELOPMENT PROCESS is what we call understanding and managing the invisible hand. It is perhaps misleading to call it a step since it is something that you will need to consider throughout the process. At every single stage it can and it will influence the process and outcome of the development and execution of strategy. It was Adam Smith, in the 18th century, who first used the phrase ‘invisible hand’ to describe the self-regulating behaviour of markets. But as you will discover, there is also a powerful invisible hand at work in the corporate setting, silently and effectively guiding and driving the decisions of each individual in the organisation.

Strategy ...