Bi-Polar Dimensions of Strategy: A Blueprint for Mastering Strategy

Do we really know what strategy is? What makes some strategies effective and others not? Many organizations lack a good strategy, often confusing it with high-level goals, vision statements, and financial targets. Below is a practical guide for leaders seeking to develop and implement effective strategies. By understanding these principles, leaders can steer their organizations toward success and avoid the traps that lead to failure.

What Good Strategy Looks Like

1. Diagnosis: A good strategy begins with a clear and insightful diagnosis of the challenge. This involves understanding the critical aspects of the situation and identifying the key issues that need to be addressed. This diagnosis acts as a foundation for the rest of the strategic process.
2. Guiding Policy: After diagnosing the problem, a good strategy sets forth a guiding policy. This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis. The guiding policy is not a detailed plan but a high-level approach that directs the organisation’s efforts in a coherent manner.
3. Coherent Actions: The final component of a good strategy is a set of coherent actions. These are coordinated steps and policies designed to carry out the guiding policy. Coherent actions are specific and ensure that the organization’s efforts are aligned and mutually reinforcing.

What Bad Strategy Looks Like

1. Fluff: Bad strategy often includes fluff—superficial statements filled with buzzwords that create an illusion of action but lack substance. These statements may sound impressive but do not provide any real guidance or insight.
2. Failure to Face Challenges: Another hallmark of bad strategy is the failure to identify and confront the organization’s core challenges. Without a clear understanding of the obstacles, it is impossible to develop an effective strategy.
3. Mistaking Goals for Strategy: Bad strategy often confuses goals and strategies. Setting ambitious targets or declaring a vision is not the same as devising a strategy. A strategy outlines how goals will be achieved, rather than just stating what the goals are.
4. Bad Objectives: Vague or impractical objectives are another sign of bad strategy. Objectives should be specific, measurable, and achievable. Unrealistic goals or those that are not actionable contribute to the failure of a strategy.

Lessons and Key Takeaways

1. Strategic Thinking: Effective strategy requires deep thinking and a willingness to confront difficult realities. It is not about setting lofty goals but about making tough decisions and prioritizing actions that address the real issues.
2. Leadership: Good strategy is often driven by strong leadership that can diagnose problems accurately and inspire the organization to follow a coherent policy and set of actions. Leaders need to be pragmatic and focused on the details that matter.
3. Adaptability: The environment in which organizations operate is constantly changing. Good strategy requires the ability to adapt and evolve in response to new information and changing circumstances.
4. Execution: The best strategies are worthless without proper execution. Coherent actions that align with the guiding policy are crucial for translating strategy into results.

Summary

The key lesson is the importance of clarity, focus, and coherent action in strategic planning. It challenges organizations to move beyond empty rhetoric and develop strategies that genuinely address their core challenges. This framework provides a valuable guide for leaders seeking to navigate complex environments and achieve sustained success.