The Three Characteristics of a Good Strategy

In my previous post, I discussed how to identify a bad strategy. Now, let’s shift the focus to recognizing a good strategy which stands out by meeting three essential criteria:

A good strategy has three main characteristics

1) Coherence

2) Reference to Challenges

3) Action orientation

Coherence

A good strategy is coherent when its elements align seamlessly, creating a unified whole. For instance, IKEA excels because every aspect of its strategy works in harmony. Competitors who attempt to cherry-pick elements of IKEA's approach often fail because they introduce inconsistency rather than synergy.

Remember that a strategy is nothing else than the answer to a limited set of questions. If you take the Play-To-Win framework by Roger Martin, then your strategy should answer to the following five questions:

1. What is our winning aspiration?
2. Where will we play?
3. How will we win?
4. What capabilities must be in place?
5. What management systems are required?

The answers to those five strategy questions should form a coherent whole, otherwise your strategy will just confuse anyone trying to understand it. That is why it is helpful to go through the questions together and thus ensure that the answer to the five questions delivers a coherent whole. The above picture indicates the need for coherence by the arrows going up and down.

The answers must interconnect to avoid confusion and misalignment. Otherwise your strategy will just confuse anyone trying to understand it.

Similarly, my Strategy-On-A-Page Framework expands this this by incorporating additional questions, such as:

• What are our values?
• What is our brand promise?
• What are the must-win battles for this year?
• What are the core initiatives to achieve one-year objectives?

People familiar with Richard Rumelt and Roger Martin will notice where I got the inspiration for my strategy questions. The colours correspond to the main phases of the strategy process:

BLUE = ASPIRATION

RED = DIAGNOSIS

ORANGE = GUIDING PRINCIPLES

GREEN = COHERENT ACTION

Avoid this mistake

Many leadership teams falter by focusing on isolated elements without ensuring alignment, leading to incoherent strategies. Using my Strategy Execution Planner can help synthesize these elements into a single, unified strategy document.

In my work with clients, I use the Strategy-Execution-Planner, which you can download on my website, to help the leadership team develop a coherent strategy that can be summarised on a single page. I created this framework back in 2016 together with my clients, who wanted to have a summary of their strategy on a single page. That is why I also call it Strategy On a Page.

Reference to Challenges

A good strategy not only describes the goals to be achieved but also the challenges or obstacles that need to be overcome to achieve those goals.

This requires a thorough diagnosis to identify internal and external obstacles. Although this sounds obvious, I see many strategies rich in goals and objectives but lack any reference to the internal and external challenges that must be addressed to achieve those goals.

Challenges can be internal or external. Internal challenges are easier to address.

Examples of external challenges

• New competitors (E.g. Apple for Nokia and Blackberry)
• Technological changes (E.g. Digital Imagery for Kodak, ChatGPT for Traditional Search)
• Political changes (E.g. Donald Trump as new US president for European Companies)

Examples of internal challenges

• Outdated or overcomplicated routines
• Culture of complacency
• Outdated technology
• Skill gaps
• Unnecessary complexity
• Lack of cooperation between teams (silos)
• Plain old incompetent or toxic management

Typically, the list of internal challenges is longer than the list of external challenges. Luckily, it is the internal challenges that companies can do most about.

Without addressing challenges, strategies remain idealistic and disconnected from execution. A focused diagnosis helps pinpoint a manageable number of critical barriers to overcome.

Action Orientation

A good strategy isn't just about aspirations or goals; it’s about action. While goals are important, they must be supported by clear, actionable steps. This includes:

• Yearly and quarterly objectives
• Key initiatives with accountable owners

Some strategists argue that operational plans should handle actions, but this separation often results in strategies that lack practical value. Action-oriented strategies bring focus and clarity, turning high-level objectives into executable plans. This ensures alignment between vision and daily operations.

The excuse is often that the strategy should only contain high-level objectives and that the actions should be part of the operational plan. I disagree with this view, as it leads to strategists that resemble unsharpened knives: They look useful, but they are of little practical value.

Obviously, the actions mentioned in the strategy should be coherent with the other elements of the strategy. That is why for me, Coherent Action, which to me is the "Sharp End Of Strategy"

Using the Strategy-On-A-Page Tool to create a coherent strategy in just 3 Workshop

Crafting a strategy that meets these three criteria—coherence, challenge focus, and action orientation—doesn’t have to be overwhelming. Often, the goal is to consolidate existing strategy elements, align leadership teams, and ensure the plan is actionable at all levels.

When I work with clients, the job is rarely to create a new strategy from scratch. In most cases, the main objective is to get the leadership team on the same page and create a strategy document that can be shared, and supports focused and engaged frontline execution throughout the year.

Through my Strategy-On-A-Page workshops, businesses can build and align their strategies efficiently. These sessions focus on turning fragmented ideas into a unified document that drives execution and engagement.

To explore how this works, download the SEPL Strategy Execution Planner from my website or sign up for the Strategy-On-A-Page Webinar today.

Click here to sign up for the free webinar.