The Kernel of Good Strategy

It is very straightforward and contains three elements:

Good strategy is coherent action backed up by an argument, an effective mixture of thought and action with a basic underlying structure called the kernel.  A good strategy may consist of more than the kernel, but if the kernel is absent or misshapen, then there is a serious problem.

Once you apprehend this kernel, it is much easier to create, describe, and evaluate a strategy.  The kernel is not based on any one concept of advantage.  It does not require one to sort through legalistic gibberish about the differences between visions, missions, goals, strategies, objectives, and tactics.  It does not split strategies into corporate, business, and product levels.   It is very straightforward and contains three elements:

• A diagnosis that defines the nature of the challenge.   A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of a situation as critical.
• A guiding policy for dealing with the challenge.  This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.
• A set of coherent actions that are designed to carry out the guiding policy.  These are steps that are coordinated with one another to work together in accomplishing the guiding policy.

ACTION POINT: Base strategy on the three elements of the kernel of good strategy.