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What a Good Strategy Means and Why You Need It A strategy is a cohesive response to an important challenge, and defining a strategy fundamentally consists on discovering the critical factors to the situation and designing a way of coordinating and concentrating your actions to deal with those factors. According to Richard Rumelt, author of Good Strategy, Bad Strategy, a good strategy has coherence, coordinated actions, policies and resources to achieve an end. The core of a good strategy contains three elements: 1. Diagnosis. Explains the nature of the challenge, identifying the critical aspects of the situation. 2. Guidance policy. It is a general approach to overcome the obstacles identified in the diagnosis. 3. A set of coherent actions, designed to implement the guidance policy. If you find yourself in a problematic situation, facing an important challenge, or simply wanting to progress in your life in a certain direction, think strategically. The situation is not going to fix itself.

Strategy has always been a fuzzy concept in my mind. What goes into a strategy? What makes a strategy good or bad? How is it different from vision and goals?   Recently I was reading a book Good Strategy / Bad Strategy - Richard P. Rumelt, here are my initial notes from the book Strategy is designing a way to deal with a challenge. A good strategy, therefore, must identify the challenge to be overcome, and design a way to overcome it. To do that, a good strategy contains three elements: a diagnosis, a guiding policy, and coherent action. A diagnosis defines the challenge. What’s holding you back from reaching your goals? A guiding policy is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis. set of coherent actions dictate how the guiding policy will be carried out. A Bad strategy is simply absence of a good strategy Four Major Hallmarks of Bad Strategy Fluff: A strategy written in heavy management jargons as strategic concepts is classic bad strategy. Failure to face the challenge: A strategy that does not define the challenge to overcome. Mistaking goals for strategy: Goals are not strategies Bad strategic objectives: A strategic objective is a means to overcoming an obstacle. Strategic objectives are “bad” when they fail to address critical issues or when they are impracticable.

What a Good Strategy Means and Why You Need It A strategy is a cohesive response to an important challenge. Defining a strategy fundamentally consists in discovering the critical factors to a situation and designing a way of coordinating and concentrating your actions to deal with those factors. To achieve something you have to say no to a lot of possible interests. That is why it’s so difficult to define a good strategy. Some things have to be sacrificed in favour of others. According to Richard Rumelt in Good Strategy, Bad Strategy, the core of a good strategy contains three elements: 1. Diagnosis. Explains the nature of the challenge, identifying the critical aspects of the situation. 2. Guidance policy. It is a general approach to overcome the obstacles identified in the diagnosis. 3. A set of coherent actions, designed to implement the guidance policy. GTD (Getting Things Done) provides you with the tools to define and execute a good strategy:

STRATEGY IS KEY. A strategy is a comprehensive plan that outlines how to achieve specific objectives. It involves analyzing current situations, identifying goals, assessing available resources, and determining the actions required to reach those goals. A good strategy is not a one-size-fits-all solution, it is tailored to the unique context and aspirations of the individual or organization it serves. A successful strategy begins with a clear vision. This vision acts as a guide, providing direction and purpose. Without a clear understanding of what one wants to achieve, efforts can become scattered and ineffective. Strategic thinking involves gathering and analyzing data to make informed decisions. This process includes understanding trends, identifying potential risks, and evaluating available resources. In a world where information is abundant, being able to sift through data and draw actionable insights is vital. While a strategy provides structure, it must also allow for flexibility. The ability to adapt to new information or unforeseen challenges is crucial for success. A rigid strategy can lead to stagnation, while a dynamic approach encourages innovation and responsiveness. Individuals that embrace flexibility are better equipped to navigate disruptions and seize opportunities. Effective strategy is also about optimizing resource allocation. Time, finances, and human capital are precious assets that must be utilized wisely. A strategic approach allows for the prioritization of initiatives that align with overarching goals, ensuring that resources are channeled toward the most impactful areas. This focus enhances efficiency and maximizes the likelihood of achieving our desired outcomes. A key component of any successful strategy is the ability to measure progress and evaluate outcomes. Setting performance indicators enables us to track achievements and make necessary adjustments. Strategies empower us to turn vision into reality, guiding us through the challenges of today and preparing us for the opportunities of tomorrow. Kamikun John, Author 366 days of wisdom. https://lnkd.in/did4jJ4F #personaldevelopment #motivation #success #strategy #key

WORST APPROACHES TO STRATEGY Consider this question: "Which are the WORST approaches to Strategy"? The ways of thinking about Strategy that can have bad or even disastrous future effects on our organization ... and why? 1. MVV-DRIVEN This approach has survived for decades. We define some Mission, Vision, Values that nobody can tell where did they come from (and why these instead of others) and, based on them, we imagine some Strategic Destination (or Strategic Intent) that prescribes a Strategy to be reached. Why is it Bad? Because the future that we cannot control (otherwise we would only do planning) will throw at us some Paramount Challenges that may have nothing to do with our fantasies about some intended MVV. 2. SWOT-DRIVEN This is also an oldies-but-goldies route to Strategy's failure. We perform the famous SWOT Analysis and, based on that insight, we design some new uses of our Strengths and ways to alleviate our Weaknesses, in order to harvest the anticipated Opportunities and defend against the future Threats. Why is it Bad? Because the solutions to surmount the Paramount Challenges related to the identified future Opportunities & Threats may have nothing or little to do with our current Strengths & Weaknesses that resulted from our past Strategy. Remember late Daniel Kahneman's "What brought you here won't get you there"! 3. ASPIRATIONS-DRIVEN The famous Roger M, ex-Dean/consultant, now retired to Florida, took possession of this approach with his Playing-to-Win cascade. It says that God has hopefully inserted into our brains some Winning Aspirations and, to reach them, we devise some Strategic Choices that best position us to do so. Why is it Bad? Because Strategy is not a game of wishes and desires. We might wish some imaginary aspirations for what we might think that "winning" is, but the future reality that we don't control will throw at us some Paramount Challenges that may have nothing to do with those aspirations. 4. STAKEHOLDERS-DRIVEN This is an emerging approach that arises from wearing strategic blinders. It says that we should look at what our main Stakeholders want from us and at what we want from them, then define a Strategy based on some Strategic Factors that should allow us to address each of those Stakeholder's needs. Why is it Bad? Because the future reality will throw at us some challenges that may be related to our main Stakeholders' needs ... or not. So, while we will be busy addressing those needs, the business environment's evolutions may hit us with some Paramount Challenges about which our Strategy is partially or completely oblivious. These are the worst, but not the only bad ones. For example, are you familiar with the "Fail Fast, Fail Often" or "Blitzscaling" strategies? Also read: CHALLENGE-BASED STRATEGY https://lnkd.in/dFNWcWtr WHY DO WE NEED A STRATEGY? (1) https://lnkd.in/dR_nMZtn WHY DO WE NEED A STRATEGY? (2) https://lnkd.in/dwnwbKsz THE HEADLESS CHICKEN STRATEGY https://lnkd.in/gDSndzDN

There is one concept that I would recommend to every business professional. Because it will refine your approach to success in a way that you can't imagine. That’s what the concept "A Plan is Not a Strategy" did for me. It revolutionised my perspective on goal setting and achievement. Here are 5 lessons from the concept that will challenge how you think about planning and strategising: 1. "Planning isn't Strategy" Planning refers to the 'what I need to do' aspect, a blueprint of tasks to be executed. But your strategy is your game plan. It's the 'where I want to be and how I get there' part of the equation. 2. "Strategy Requires System Thinking" A strategy involves a component of goal and process. It's not about ticking off boxes but about understanding the interrelatedness of each action and its impact on the ultimate goal. 3. "Goals Define the Outcome, Strategy Defines the Journey" Your goals provide the destination, but your strategy is the roadmap. It’s about recognising the path to that destination and the steps to take. 4. "Strategy is Dynamic" Your strategy should never be set in stone. It must be dynamic, reactive, and flexible to accommodate changes, challenges, and opportunities. 5. "Strategy Fosters Innovation" Strategy encourages you to think outside the box, to innovate and experiment. It pushes you beyond your comfort zone, driving growth and progress. If you have applied this concept in your professional life, I’d love to hear about your experiences and insights in the comments. Take a moment to reflect on your approach: Are you just planning, or are you strategising? #Strategy #Planning #BusinessStrategy #ProfessionalDevelopment #Goals #Innovation

Evaluating Your Strategy Effectively.... 1️⃣ Is It a Strategy? Many so-called "strategies" are simply to-do lists. Use Peter Compo's five disqualifiers to evaluate yours: > Is it just a list of tasks? > Does it contain numbers? > Is the opposite of the strategy nonsensical? > Is it redundant with the parent strategy? > Does it exclude any part of the organization? If you answered "yes" to any of these, it's time to rethink your approach. 2️⃣ Is It a Good Strategy? Once you confirm you have a strategy, assess its quality: > Does it answer fundamental questions relevant to its level? > Does it identify the key challenge to be resolved? > Does it differentiate between trivial and essential elements? > Is there a central guiding policy? > Are choices and trade-offs clearly defined? > Are the elements coherent and aligned? 3️⃣ Is It a Winning Strategy? Finally, evaluate your strategy's potential for success: >Does it fit the current environment? >Can it create a sustainable competitive advantage? >Is there clarity on how it delivers unique value? >Is it actionable and focused on high-impact efforts? >Is it feasible with available resources? >Is it based on sound logic and tested assumptions? Answering “no” to any of these prompts indicates areas for improvement. If you answered "yes" to all, congratulations! You have a robust strategy poised for success. Final Thoughts A rigorous evaluation of your strategy is crucial for navigating the dynamic business landscape. Stay committed, refine your approach, and position your organization for success!

Your strategy needs a strategy... did you know there are five different approaches to strategy that you can choose from? You should, especially the four non-traditional ones. These are the five approaches to strategy. Picking the right approach to strategy depends on three dimensions: Unpredictability: the extent to which it is possible to predict how things will unfold in the next couple of years. Malleability: the extent to which it is possible to influence the course in which things unfold in the next couple of years. Harshness: the extent to which keeping your organization going is difficult because of internal and external threats and pressures. Based on these three dimensions, the Boston Consulting Group (BCG) distinguishes five different strategies: 1. Classical Strategy Perception of context: Predictable, Unmalleable, Promising Mantra: Plan Typical activities: Analyze, plan, forecast, formulate Key success factor: Accuracy 2. Adaptive Strategy Perception of context: Unpredictable, Unmalleable, Promising Mantra: Adapt Typical activities: Experiment, monitor, iterate, adjust Key success factor: Flexibility 3. Visionary Strategy Perception of context: Predictable, Malleable, Promising Mantra: Build Typical activities: Envision, convince, build, persist  Key success factor: Power 4. Shaping Strategy Perception of context: Unpredictable, Malleable, Promising Mantra: Gather Typical activities: Collaborate, share, evolve, co-create  Key success factor: Connections 5. Renewal Strategy Perception of context: Harsh (the rest is no longer relevant) Mantra: Survive Typical activities: Scale down, focus, reset, preserve  Key success factor: Resilience Let this sink in a bit more and have a look at all five.  Then ask yourself the following questions: - How do you perceive the context you're in on the three dimensions? - Which of the five strategies would fit that context? - What does your current approach to strategy look like and does it fit? - What do you need to do differently? It's probably time for a change! ==== You know the Classical approach. Do you want to master the other approaches as well, then it may be time you join the Certified Strategy & Implementation Consultant (CSIC) program. Registration for our February 2025 cohort has opened this week. If you are an (aspiring) internal or external strategy consultant or want to expand your skills, check our website https://lnkd.in/eQYY8cFE for all information and registration. #strategyconsulting #resilience #businesscontinuity

Your strategy needs a Strategy 👌

Strategy...... An Insight