I just finished a great book on strategic thinking called Good Strategy / Bad Strategy: The Difference and Why it Matters. It helped me understand what strategy really is both from a conceptual perspective and also concretely with case studies of companies like Apple & Nvidia and organizations like NASA and the US Army that had successfully implemented good strategy.
I highly recommend you check it out because the case studies really bring the concepts to light. But for your benefit and mine, here are some of the key takeways I got from it.
What Strategy is Not
Strategy or “strategic thinking” often refers to the work engaged by leaders of an organization, but just because someone is power is thinking, doesn’t make it strategic. A common mistake is to create goals, visions, budgets and/or “key priorities” and call that strategy. They are NOT.
Strategy Has Three Elements
All good strategies have what the author calls a “kernel”. They are: a diagnosis of the primary challenge(s) and obstacle(s) faced by the organization, a guiding policy for how the organization plans to approach or overcome the challenge(s) and a set of coherent actions and resource commitments designed to carry out the guiding policy. Continue reading