As 2023 draws to a close, I find myself in a reflective state, contemplating about the year and planning the year 2024. A central theme that recurs throughout this reflection is the course we’re steering, which is shaped by strategy or, sometimes, the conspicuous absence of it. I recently read a book named Good Strategy Bad Strategy (Goodreads) by Richard P. Rumelt, which I consider essential for anyone looking to grasp how strategic thinking can channel collective efforts for the greater good. Here, I’d like to highlight a few essential insights from the book.

The premise is simple yet profound: by harnessing our existing resources and circumstances, we can navigate the complexities of the world much more effectively. The recipe for a solid strategy involves a three-step process: diagnosing the challenge (1), formulating guiding policies (2), and executing the coherent actions (3). Think of the diagnosis as identifying a disease, while the guiding policy serves as the well-conceived treatment plan that must be consistently implemented until it is cured. The author does an exceptional job of demystifying the concept of strategy:

1. This step involves recognising the hurdles your business currently faces, something you are typically aware of to some extent. The key is to extract the complexity of your reality into a few essential components.

2. Once the critical issues are identified, it’s time to think of a broader approach to tackle them. These approaches are your guiding policies that provide direction.

3. Finally, you must define specific initiatives that align with the guiding policies. These actions should complement each other and be integrated across all parts of the organisation, internal & external processes and most importantly – user journey of the product you’re creating.

While this may sound overly simplistic, it is far from it. If done correctly, the outcome, as Richard P. Rumelt asserts, is what constitutes a ‘Good Strategy’. He expands in greater detail all of these aspects, provides detailed examples and ways to think about the kernel of strategy. Give it a read, highly recommend.