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A startup can apply the kernel of good strategy to its business model by first diagnosing the problem or challenge it faces. This involves understanding the market, competition, and internal capabilities. Next, it should establish a guiding policy for action, which could be a unique value proposition or a novel approach to delivering services. This policy should address the diagnosed problem and leverage the startup's strengths. Finally, the startup should define coherent actions to implement the guiding policy. These could be specific projects, initiatives, or processes that bring the strategy to life.
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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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In its simplest form, good strategy answers three very simple questions: 'why' (diagnosis of the problem), 'what' (guiding policy for action), and 'how' (the actionable objectives themselves). Rumelt calls this the kernel of good strategy. A good guiding policy tackles the obstacles identified in the diagnosis of a problem through the creation of advantage or the collection from sources of advantage. Importantly, not all advantage is competitive (in the case of nonprofits or public-policy strategy). Action points are vital to any good strategy. Companies often lack action points. With Bush in Iraq, the goal was to invade and conquer. The goals were freedom, democracy, and reconstruction; but the strategy was not implemented until General David Petraeus laid out what must be done to counter an insurgence (something that had not been considered before). General Petraeus' impact was great. This example demonstrates why coherent action must be central to any strategy. "A good strategy doe...
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