Strategy Revolves Around a Diagnosis, a Guiding Policy, and Coherent Action.

Strategy is action supported by argument. This is shaped by the kernel of strategy.

Richard Rumelt writes that the kernel of strategy has three parts: a diagnosis, a guiding policy, and coherent action. Strategy may include other aspects, like a vision, goals, scope, or timespan, but these are ancillary to the core components of a diagnosis, a guiding policy, and coherent action.

• Strategic diagnosis is a clear, honest description of the challenge at hand
• Guiding policy is a general approach to overcoming a challenge
• Strategy defines coherent action -- a set of coordinated moves that enact a guiding principle

Using these key components, strategy selects a path, identifying where, why, and how resources are applied—the application of weakness against strength or to the best opportunity.

An example can be drawn from the medical world.

A doctor evaluating a patient may come to a diagnosis that the patient is at risk of high blood pressure. The doctor may then set a guiding policy advising that the patient manage the condition through dietary changes and exercise. The coherent action may then include reducing salt intake to 2500mg/day and walking for 30 minutes every day.

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Citations

Rumelt, Richard. Good Strategy Bad Strategy: The Difference and Why It Matters. Illustrated edition. New York: Currency, 2011.

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