Poor strategic competence at the top

Despite the importance of strategic thinking at the top, many business leaders fall short. Research by McKinsey reveals that strategic acumen remains one of the least developed competencies among executives. Meanwhile, studies from Bain show that most strategic projects fail to deliver the expected results — not because the ideas are flawed, but because leaders struggle to make and communicate sharp choices.

Focus on what really matters

In a world flooded with goals, priorities, and PowerPoint strategies, Richard Rumelt’s book The Crux – How Leaders Become Strategists offers a refreshing and sharp approach to real strategic thinking. His core idea is disarmingly simple: focus on the one challenge that truly determines success or failure—the crux. Just like mountaineers navigating a tough climb, leaders must identify the most critical obstacle standing between them and their goal, then concentrate their efforts on overcoming it.

This mindset shifts strategy from vague ambition to focused problem-solving. In Central and Eastern Europe, we’ve seen this principle in action time and again. When OTP Bank expanded into new markets, their crux wasn’t just growth—it was mastering digital transformation fast enough to stay ahead of fintech disruptors. Their focused investment in digital capabilities, rather than spreading attention across multiple initiatives, paid off.

MOL Group faced a different kind of crux—how to transition from a traditional oil and gas company into a future-proof energy and chemicals business. Instead of incremental adjustments, they committed to bold moves: petrochemicals, circular economy investments, and innovation hubs. They recognized that solving this one transformation challenge was the difference between future relevance and decline.

So how do you identify your crux?

Start with a clear understanding of your goals, then asking: what’s the biggest, most consequential barrier standing in the way? It’s not about what’s hard in general—it’s about what’s hard, critical, and addressable for us?. The future of the Russan-Ukrainian war may be the most critical issue today for many CEE businesses, but it is not addressable for most of them. The crux must lie at the intersection of importance, inertia, and feasibility: it’s a tough challenge that truly matters, yet is solvable for us with effort and insight.

You should resist the urge to address everything at once. Instead, map out the landscape of issues, then zero in on the one knot that, if untangled, would unlock real momentum. It requires honest diagnosis, focused thinking, and sometimes tough choices—because saying yes to the crux usually means saying no to a dozen distractions.

Take eMAG in Romania: their crux wasn’t customer acquisition—it was logistics. They solved it by heavily investing in warehousing, delivery infrastructure, and fulfillment speed. The result? A solid competitive advantage that allowed them to scale with trust.

Or consider Kifli.hu (part of Rohlik Group), which faced the crux of building reliable last-mile delivery in crowded Central European cities. Their obsession with operational precision and customer experience didn’t just solve a logistical problem—it became their growth engine.

At SEED, we often see executives wrestling with multiple priorities. But real leadership begins when you step back and ask: what is the crux of our strategic situation? Identifying it demands clarity and courage—but solving it creates real momentum. The best strategies aren’t a dozen priorities—they’re about attacking the one thing that matters most.

What is the crux of your strategic situation?

This article is by dr. László Eszes, CEO and Academic Director of SEED Executive School.