Five quick questions to help write a better strategy

Let’s start by defining strategy. A company’s mission is the reason for existence of a company. A vision is what they company wants to achieve in the long-term, and finally a strategy is a plan to achieve the vision. In this simple definition, a good strategy is a plan that helps move a company closer to achieving its vision.

How can we judge the quality of this plan?

• Is it just fluff? Richard Rumelt describes this as “a restatement of the obvious, combined with a generous sprinkling of buzzwords that masquerade as expertise”. Perfectly put!
• Does it make sense? A good strategy should follow sound logic with all aspects mutually reinforcing.
• Does it mention the trade-offs? You can’t have everything! You can’t be a cost-leader, the most innovative and have the best product. A good strategy makes the trade-offs based on your understanding of the world you are in.
• Is it distinctive? Roger Martin has a great test - if the opposite is stupid on its face, then every single one of your competitors will make the same choice. Does your strategy make choices that align with your companies strengths and weaknesses?
• Is it regularly checked? Strategy should be based on a diagnosis of the current situation and future trends. Those change regularly. If you aren’t assessing the impact of new tech trends or market changes against your strategy then its drifting from reality.