The Guiding Policy IV

the heart of the matter in strategy is usually advantage. 

A good guiding policy tackles the obstacles identified in the diagnosis by creating or drawing upon sources of advantage.  Indeed, the heart of the matter in strategy is usually advantage.  Just as a lever uses mechanical advantage to multiply force, strategic advantage multiplies the effectiveness of resources and/or actions.  Importantly, not all advantage is competitive.  In nonprofit and public policy situations, good strategy creates advantage by magnifying the effects of resources and actions.

In most modern treatments of competitive strategy, it is now common to launch immediately into detailed descriptions of specific sources of competitive advantage.  Having lower costs, a better brand, a faster product-development cycle, more experience, more information about customers, and so on, can all be sources of advantage.  This is all true, but it is important to take a broader perspective.  A good guiding policy itself can be a source of advantage.

ACTION POINT: Take a broad perspective and understand your advantage when developing strategy.