Question
A guiding policy in the formulation of a good strategy serves as a roadmap for action. It is developed after diagnosing the problem and is designed to tackle the identified obstacles. The guiding policy creates or leverages advantages to overcome these obstacles. It is a crucial part of the strategy as it provides direction and focus, ensuring that all actions taken align with the overall objectives of the strategy.
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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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