“The Strategy Behind the Hockey Stick" by Chris Bradley, Martin Hirt, and Sven Smit explores the concept of strategic planning and growth in business, focusing on the discrepancy between optimistic growth projections (represented by a "hockey stick" shape in financial charts) and the reality of company performance. The book emphasizes that many businesses rely on overly optimistic, unrealistic growth expectations, without developing the strong strategic plans necessary to achieve them.

Key concepts discussed in the book include:

1. Bias in Strategic Planning: The authors explore how companies often fall into traps of wishful thinking, creating optimistic growth forecasts without addressing the challenges or risks.

2. Breaking the Norms: The book urges businesses to break away from conventional, conservative approaches to strategy that rarely lead to real breakthroughs. Instead, companies should embrace bold, transformative strategies that are grounded in rigorous analysis and informed decision-making.

3. Differentiation: Achieving significant growth requires differentiating from competitors and focusing on bold, well-calculated bets, rather than spreading resources thinly across too many initiatives.

4. Resource Allocation: Successful companies are strategic with resource allocation, directing investments toward high-potential areas with the possibility of substantial returns, rather than sticking to traditional methods of equal distribution across departments.

5. Focus on Execution: The authors stress the importance of execution and monitoring progress, with a focus on creating a culture that encourages action and accountability.

The book provides practical insights for businesses looking to break out of mediocre performance, advising leaders to confront harsh realities, manage biases, and create strategies grounded in data and practical assessment. It appeals to leaders seeking to make real change by focusing on what truly drives growth and value creation.

The Power Curve of Economic Profit: