The Core of a Good Strategy
· One min read
Three Fundamental Elements
- Diagnosis: Simplifying the problem and identifying challenges.
- Guiding Policies: How to respond to challenges?
- Coherent Actions: A series of actions that mutually reinforce each other under the guidance of principles.
Examples
In business, the challenge is usually dealing with change and competition.
- Diagnosing the specific structure of the challenge rather than simply naming performance goals.
- Choosing an overall guiding policy for dealing with the situation that builds on or creates some type of leverage or advantage.
- Designing a configuration of actions and resource allocations that implement the chosen guiding policy.
In many large organizations, the challenge is often diagnosed as internal.
- The organization’s competitive problems may be much lighter than the obstacles imposed by its own outdated routines, bureaucracy, pools of entrenched interests, lack of cooperation across units, and plain-old bad management.
- Reorganization and renewal.
- Changes in people, power, and procedures.
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