Effective strategy, according to Richard Rumelt, means "finding the most effective way to direct and leverage your resources." Put another way, strategy involves the effective allocation of resource to maximize the impact of any effort applied. Choosing the correct mix of resources and applying it to precisely the right leverage point delivers an advantage, ideally in a way that is more efficient than a competitor's application of their own resources. This means that strategy has to be sufficiently novel that it's unlikely a competitor can easily replicate it.
- Strategic diagnosis is a clear, honest description of the challenge at hand - A clear diagnosis should identify the factors that affect the problem space to ensure that efforts can be applied where they will count most.
- Strategy creates advantage by generating new perspectives - Strategy is creative, even contrarian; without originality, the strategy will be too easily reproducible.
- Strategy manufactures constraints - Strategy focuses energy, which means it necessarily must introduce constraints that limit inefficient application of resources.
Innis, Henry. “What Strategists Do All Day.” Medium (blog), May 28, 2015. https://medium.com/doing-the-work/for-all-you-people-who-have-no-clue-what-a-strategist-does-60906ca7dce2.