The basic definition of strategy is overcoming obstacles. Following is the definition of strategy according to Richard Rumelt, the professor at UCLA and recognized as an exceptional strategist, “The core of strategy work is always the same: discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with those factors.”
Strategy is a term that has been so widely used that its meaning has been diluted to the point that many CEOs define it as a goal or mission statement. Strategies are not goals or mission statements. Strategy is a cohesive response to an important challenge.
Also, you cannot have a strategy if you don’t have implementation. If your strategy does not have a plan of coherent action it is missing an important part of the strategy.
A good strategy according to Rumelt has a logical structure that he calls the “kernel. This kernel consists of three parts: a diagnosis, a guiding policy, and coherent action.
The guiding policy specifies the approach to dealing with the obstacles called out in the diagnosis, It defines the general way forward but without specific details.
Coherent actions are feasible coordinated policies, resource commitments, and actions designed to carry out the guiding policy.
Once you understand the definition of strategy, diagnosis, general policy, and coherent action, you will be able to detect bad strategies. And there are plenty of bad strategies around. Many people treat strategy as goal setting rather than problem-solving
A good strategy doesn’t just draw on existing strength, it creates strength through the coherence of its design. The creation of new strengths is done through subtle shifts in viewpoint.
Now, when you think of strategy, think about the kernel –diagnosis, general policy, and coherent action. Does your strategy include those components?
