How Effective Is Your Strategy? Just Look at the Results.
Grant Hamel
Program Director & Senior Manager at Valcon | High Performance Coach with Team Coaching expertise
"If you always do what you’ve always done, you’ll always get what you’ve always got."
Many leaders assume they have a strong strategy—until they examine the results. A well-crafted strategy isn’t just about setting bold ambitions or crafting an inspiring vision statement; it’s about making deliberate, well-informed choices that drive measurable outcomes.
The reality is that bad strategy is far more common than good strategy (Rumelt, 2011), and its consequences can be devastating. Having worked with strategists across industries and recently consolidating my understanding through my MBA in 2024, I’ve found that most strategic failures stem from a lack of robustness, logic, and execution. The real question is: How effective is your strategy? Just look at the results. If your outcomes are inconsistent, unpredictable, or disappointing, chances are your strategy is fundamentally flawed.
The Hallmarks of a Good Strategy
A good strategy isn’t built on wishful thinking—it is grounded in clear problem-solving, coherent planning, and disciplined execution (Rumelt, 2011). The strongest strategies stand on three essential pillars:
1. Robustness—Does It Hold Up in Good and Bad Times?
Many strategies seem effective during favourable market conditions but crumble under pressure. A robust strategy accounts for both opportunities and risks, ensuring long-term resilience against economic downturns, competitive shifts, and crises (Grant, 2021).
Example: Amazon’s ability to adapt its supply chain during the COVID-19 pandemic is a testament to strategic robustness. By leveraging its logistics infrastructure and prioritising essential goods, it not only survived but grew during a period of global disruption (Pereira et al., 2020).
Ask yourself:
2. Logic—Does It Make Sense Beyond Passion and Emotion?
Emotion often clouds strategic decision-making. Many leaders become attached to ideas that seem exciting but fail to validate them with evidence. A sound strategy is rational, data-driven, and market-aligned.
Personal Example: Years ago, I considered growing lavender on a farm north of Cape Town. When I shared this idea with a seasoned farmer, he advised against it. Rather than telling me what to grow, he suggested I speak to essential oil salespeople to understand what was in demand. That advice was invaluable—rather than following my gut instinct, I needed to align with market demand (Porter, 2008).
Ask yourself:
3. A Clear Diagnosis and a Coherent Plan
Richard Rumelt (2011) argues that good strategy starts with diagnosing the real problem. Too often, leaders set broad aspirations—"We will be the best in the industry"—without identifying what stands in their way. A good strategy clearly defines the challenge and lays out a logical, step-by-step plan to overcome it.
Example: Netflix’s transition from DVD rentals to streaming was built on a clear diagnosis—consumer behaviour was shifting, and digital streaming was the future. Their strategy wasn’t just ambitious; it was a well-executed response to a tangible industry shift (Gans, 2016).
Ask yourself:
The Red Flags of a Bad Strategy
If good strategy is about clarity and coherence, bad strategy is characterised by vague ambition, unrealistic targets, and failure to address real challenges. Here are the warning signs:
1. Fluff—High-Sounding Statements with No Substance
Bad strategy often hides behind corporate jargon and vague buzzwords. Leaders announce goals like "We will drive innovation and disruption to become a market leader," but fail to define how. This isn’t strategy—it’s rhetoric (Rumelt, 2011).
Example: WeWork’s mission to “elevate the world’s consciousness” (WeWork, 2019) sounded inspiring but had no clear strategic foundation. The company expanded recklessly, ignored financial realities, and collapsed into a failed IPO.
Ask yourself:
2. Setting Goals Instead of Solving Problems
Many companies mistake setting targets for creating strategy. Goals like “increase market share by 10%” are meaningless if they don’t address the obstacles preventing growth.
Example: Blackberry failed not because it lacked ambition but because it misdiagnosed the problem—consumer preferences were shifting towards touchscreens. Instead of adapting, the company focused on minor software upgrades and marketing, missing the fundamental industry shift (Grant, 2021).
Ask yourself:
3. Over-Reliance on Inspirational Leadership
A compelling vision can inspire teams, but without a clear execution plan, it remains a dream. Leadership should support strategy—not replace it.
Example: Many start-ups with charismatic founders fail because they rely too much on vision and not enough on structured execution. Jim Collins (2001) in Good to Great found that truly great companies were not built on personality but on disciplined leadership and a culture of rigorous decision-making.
Ask yourself:
How to Apply This Thinking to Your Business
If strategy is about making deliberate choices, the first step is to challenge your assumptions. Instead of asking, "What do I want to achieve?", ask:
A good strategy is not built on ambition alone—it is about clarity, logic, and execution. The strongest strategies remain effective even when the world around them shifts.
So, let’s return to the question: How effective is your strategy? Just look at the results. If your strategy is failing to deliver, it may be time to go back to the fundamentals.
References
What are your thoughts on good and bad strategy? Have you seen their impact in your business? Share your insights in the comments.