How to Spot a Good or Bad Strategy

What goes into a strategy? What makes it either good or bad? In simple terms, a strategy is a way to deal with a problem or challenge. A good strategy must therefore identify the challenge to be overcome and design a way to overcome it.

The three elements of a good strategy

In order to spot a good strategy, you should look out for these three important elements:

1. A diagnosis - A good strategy defines the challenge and simplifies the overwhelming complexity of reality down to a simpler story by identifying areas of the situation which are deemed critical. The diagnosis uses analogies, metaphors or existing frameworks for simplicity and comprehension. If you don’t know the problem you are solving then you cannot develop guiding actions.
2. A guiding policy - This is an overall approach that is chosen to either cope with or overcome the challenges identified in the diagnosis. It is the guiding policy that directs and constrains actions so that they follow a certain direction without exactly defining what will be done.
3. A set of coherent actions - It is not enough to have a guiding policy. A strategy needs coherent actions that dictate how the guiding policy will be carried out. The actions should be in coherence such that the use of resources and the pathways undertaken blend together without clashing.

Other elements of a good strategy include:

• Simplicity 
• Coherence such that all actions taken by an organisation reinforce and support each other
• Focus and coordination of efforts to achieve an outcome
• Leveraging sources of power to overcome an obstacle

The elements of a bad strategy

There are four major hallmarks of a bad strategy which include:

1. Fluff This is a strategy which uses inflated words to create an illusion of high-level thinking. Substance needs to underpin every good strategy.
2. Zero challenge A bad strategy is one that fails to define the challenge to overcome which makes it impossible to evaluate or improve.
3. Goals instead of a strategy Goals are essential but they are not a substitute for a strategy. More often than not, people make statements of desire rather than actionable plans for overcoming obstacles. Goals should not be confused for a strategy.  A strategy is what dictates how the goals are to be achieved.
4. Bad strategic objectives A bad strategic objective is one which fails to address critical issues or is impracticable.  When strategic objectives are bad, so is the strategy itself.

Use these pointers to evaluate your strategy, and determine if your business has a well-formed strategy or if correction needs to be done. Strong strategic planning is the first step towards effective execution.

Collagis is committed to helping businesses like yours to optimise workforce and organisational effectiveness. We'd love to hear from you to share how we can help you build clear and effective strategies for your business.
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