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Guiding policies are essentially the approach an organization takes to address its diagnosed problems or challenges. Here are a few examples:
1. A company facing high employee turnover might adopt a guiding policy of improving employee satisfaction. This could involve initiatives like better compensation, flexible work hours, or improved workplace culture.
2. A business struggling with poor customer retention could implement a guiding policy of enhancing customer service. This might include training staff in customer relations, implementing a customer loyalty program, or improving after-sales service.
3. A firm dealing with low brand recognition might choose a guiding policy of increasing marketing efforts. This could mean investing in advertising, public relations, or social media campaigns.
Remember, the key to a successful guiding policy is that it should directly address the diagnosed problem and provide a clear path for the set of coherent actions to follow.
Question was asked on:
We read the book by Richard Rumelt and will break down the key insights between good and bad strategy. The "kernel" of good strategy contains three main components: diagnosis of a problem; an appropriate guiding policy; and a set of coherent actions. If each stage isn't treated carefully, bad strategy is inevitable.
Asked on the following book summary:
Even some of the world’s biggest organizations do strategy poorly, and incorrectly credit their success to personal decision-making skills. We read th...
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