The diagnosis phase in strategic planning, as outlined by Richard Rumelt, involves identifying the critical issues or challenges that the organization is facing. This could be anything from declining market share, poor customer satisfaction, or internal inefficiencies.

To start the diagnosis phase, the leadership team could ask questions like:

1. What are the most pressing issues we are currently facing?
2. How are these issues impacting our business performance?
3. What are the root causes of these issues?
4. How do these issues align with our current strategic objectives?
5. What are the potential risks if these issues are not addressed?

These questions will help the team to identify the problems that need to be addressed and provide a clear direction for the next stages of the strategy: the guiding policy and the set of coherent actions.

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The Coherent Actions stage in developing a new software product involves a set of actions that are designed to address the identified problem and follow the guiding policy. Here are some clear directions for this stage:

1. Prioritize Tasks: Identify the most critical tasks that need to be accomplished first. This could be based on their impact on the overall project or their dependencies on other tasks.

2. Allocate Resources: Assign resources, including personnel, time, and budget, to each task based on its priority and requirements.

3. Set Clear Goals: Define clear, measurable goals for each task. This will help in tracking progress and identifying any deviations from the plan.

4. Regular Monitoring: Regularly monitor the progress of each task. This will help in identifying any issues early and taking corrective actions.

5. Review and Adjust: Review the progress regularly and adjust the plan if necessary. This could involve re-prioritizing tasks, re-allocating resources, or changing the goals.

Remember, the key to successful coherent actions is to ensure that all actions are aligned with the guiding policy and are aimed at addressing the diagnosed problem.

Sure, let's break down the stages of building a software product using the three main components of a good strategy as outlined by Richard Rumelt.

1. Diagnosis of a problem: You identify a problem that your software product will solve. For example, businesses are struggling to manage their customer relationships effectively.

2. An appropriate guiding policy: You decide on a policy that will guide the development of your software product. For example, your policy could be to create a user-friendly Customer Relationship Management (CRM) software that is accessible on multiple devices.

3. A set of coherent actions: You outline the steps needed to develop your software product. This could include designing the user interface, coding the software, testing it for bugs, and finally, launching it to your target audience.

Remember, each stage must be treated carefully to avoid a bad strategy. For instance, if you rush the diagnosis stage and misidentify the problem, your software product might not meet the needs of your target audience. Similarly, if your guiding policy is not clear, your development team might not know what they are working towards. Lastly, if your actions are not coherent, you might end up with a product that doesn't function as intended.

The Coherent Actions stage in developing a new software product involves a set of actions that are designed to address the identified problem and are guided by the policy. Here are some clear directions for this stage:

1. Prioritize Tasks: Identify the most important tasks that need to be accomplished and prioritize them based on their impact on the overall project.

2. Allocate Resources: Determine the resources required for each task and allocate them accordingly. This includes human resources, technology, and time.

3. Set Clear Goals: Each action should have a clear goal that contributes to the overall objective of the project. This helps in tracking progress and measuring success.

4. Ensure Team Alignment: All team members should understand and be aligned with the actions to ensure smooth execution.

5. Regular Review: Regularly review the actions to ensure they are still relevant and effective in achieving the project's goals. Make necessary adjustments if required.

Remember, the Coherent Actions stage is not a one-time event but a continuous process that requires regular monitoring and adjustments.

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Good Strategy, Bad Strategy

Even some of the world’s biggest organizations do strategy poorly, and incorrectly credit their succ...

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